One of the most significant challenges of cross-border trade in Africa is the ease of financial transactions. With 400 million adults excluded from the formal financial system, it is crucial to establish electronic payment infrastructure to facilitate trade. It is with this in mind that the Comesa zone, the common market of southern and eastern Africa, has decided to set up an online payment portal.
This pilot project, launched last September in Malawi, aims to secure payments, minimize costs and facilitate transactions for micro, small and medium enterprises. The payment platform stands out in particular for its low cost, with only one dollar per transaction, regardless of the amount. This affordable price is a boon for entrepreneurs looking to develop their activities in the region.
In addition to reducing costs, this online payment portal will also integrate African currencies. By working to harmonize cross-border digital payment protocols, Comesa central banks seek to facilitate trade and limit losses linked to exchange rates. This initiative aims to encourage entrepreneurs to position themselves in the intra-Comesa market, which still represents enormous potential today.
Indeed, despite the challenges linked to cross-border payments, 80% of the intra-Comesa market remains up for grabs. Mauritian entrepreneurs, aware of this opportunity, see this online payment portal as a chance to boost their trade with countries in the region. The figures are encouraging and show that intra-Comesa trade still has a lot of potential to grow.
Beyond the practical and economic aspect, this initiative will also have a social impact by allowing a greater number of people to access the formal financial system. By giving the 400 million adults excluded from this system the opportunity to carry out financial transactions online, Comesa contributes to financial inclusion and promotes economic development.
In conclusion, the establishment of electronic payment infrastructure in the Comesa zone is a major step forward in facilitating cross-border trade in Africa. By reducing costs and integrating African currencies, this initiative will boost trade and encourage financial inclusion. Mauritian entrepreneurs, aware of the opportunities offered by this online payment portal, are positioning themselves to seize their share of the intra-Comesa market. The future looks bright for micro, small and medium-sized businesses in the region.