As the continent's largest trading bloc, the Common Market for Eastern and Southern Africa (COMESA) has enormous potential to drive economic growth, promote regional integration, and lift millions out of poverty.
COMESA trade statistics paint a picture of enormous opportunities coupled with significant challenges. While the region exported goods worth $205 billion and imported goods worth $272 billion in 2022, it also faced a trade deficit of $67.5 billion.
Moreover, intra-COMESA trade, despite its importance, remains below its true potential, with exports and imports amounting to $14.1 billion and $14.2 billion, respectively.
Despite the region's economic potential, challenges remain in strengthening trade facilitation mechanisms to ensure sustainable value chains and seamless cross-border supply chains.
As such, the COMESA Business Council (CBC) has embarked on the task of implementing the Digital Financial Inclusion Programme, which aims to design, develop and deploy an integrated infrastructure for digital financial services.
A critical step in this journey is developing and deploying a digital retail payment platform.
This initiative also aims to provide a transformative solution to enhance economic resilience and sustainability within COMESA.
Leveraging digital technologies to expand access to financial services, especially among micro, small and medium-sized enterprises, women and youth, will stimulate inclusive growth and empower marginalized communities across the region.
At its core, the Digital Financial Inclusion Program addresses the fundamental barriers to economic participation and the flow of goods and services within COMESA. It seeks to provide low-cost, interoperable, real-time and fraud-resistant financial services to enable MSMEs to access formal financial channels, manage their finances more effectively, and seize new business opportunities.
Furthermore, by targeting women and youth who are disproportionately excluded from traditional financial systems, the program seeks to advance gender equality and youth empowerment, unlocking untapped reservoirs of talent and innovation.
The benefits of digital financial inclusion extend beyond individual entrepreneurs and businesses; It has the potential to drive broader economic transformation within COMESA.
A robust digital financial infrastructure will facilitate seamless cross-border transactions, reduce transaction costs and enhance the efficiency of supply chains, thus enhancing regional integration and promoting trade within COMESA.
Furthermore, by fostering an enabling environment for entrepreneurship and innovation, digital financial inclusion fuels a thriving ecosystem of startups and SMEs, leading to job creation, economic diversification, and sustainable development across the region.
In the context of the Continental Free Trade Area (CFTA), of which COMESA is a vital part, digital financial inclusion assumes even greater importance. As member states seek to harmonize trade policies and remove barriers to trade, resilient digital financial infrastructure serves as a key pillar to facilitate the smooth flow of goods, services and capital across borders.
Therefore, by bridging the gap between informal and formal economies, the Digital Financial Inclusion Program will enhance transparency, accountability and good governance, laying the foundation for a prosperous regional economy built on trust and cooperation.
As part of the rollout, CBC is also developing robust regulatory frameworks and policy guidelines to govern the operation of the digital retail payment platform. These frameworks ensure compliance with international standards, protect consumer rights, and enhance trust in digital financial services.
However, as CBC embarks on this transformative journey, collaboration and partnership will be key to overcoming the challenges and maximizing the social and economic impact of this initiative. Stakeholders, including governments, must work to enact enabling regulatory frameworks that foster innovation, protect consumer rights, and ensure the integrity of digital financial systems.
Financial institutions and technology providers must collaborate to develop customized solutions that meet the unique needs and preferences of COMESA's diverse population. Civil society organizations and development partners must advocate for inclusive policies and provide support to vulnerable communities, ensuring that no one is left behind in digital transformation.
As COMESA embarks on this transformative journey, let us seize this opportunity to bring prosperity to all Member States and build a brighter tomorrow for generations to come.
