2023-11-05 23:00:40
To facilitate cross-border trade between its 21 members, the Comesa zone – the common market for southern and eastern Africa – is establishing electronic payment infrastructure. The goal: to secure payments, minimize costs and facilitate transactions for micro, small and medium-sized businesses. While awaiting the launch of a dedicated platform, planned for next year, a pilot project has just been unveiled in Mauritius.
From our correspondent in Port-Louis,
The demonstration of the Comesa online payment system took place in front of around fifty hand-picked Mauritian entrepreneurs. They were able to discover the advantages of this system, which is very favorable in terms of cost, as highlighted by the director of operations of the Comesa Business Council, Jonathan Pinifolo.
« This payment platform stands out for its low cost», warns Jonathan Pinifolo. «No matter the amount of a transaction, it will only cost one dollar to make or receive a payment. Which is not the case at the moment. »
The pilot project was launched last September in Malawi. The online payment portal is expected to be active from mid-2024, with the participation of 8 countries out of the 21 in the zone, namely Zambia, Malawi, Kenya, Egypt, Ethiopia, Uganda, Rwanda and Mauritius.
400 million people in Africa excluded from the formal financial system
In Mauritius, the Chamber of Commerce and Industry encourages its members to position themselves. “Intra-Comesa trade figures are still very, very low. 80% of the market remains to be taken,” points out Namita Jagarnath Hardowar, president of the MCCI.
Comesa estimates that 400 million adults in Africa are excluded from the formal financial system, meaning that more than half of African adults engage in cash transactions. A reliable and smooth digital payment service is popular with entrepreneurs, like Clara Calou, specialist in ISO quality standards.
« There is certainly an expectation to put the chances on our side, to be able to exchange. And this platform will help us a lot“, says Clara Calou. Asked if she does business with Africa, she replied: “I have partners in Africa, I provide consulting services, I do training and with my partners, we are in the process of aligning, and of course the money will follow. »
Integrate African currencies
The digital wallet will allow users to store, manage and carry out financial transactions online. Digital infrastructures include commercial banks, mobile operators and FinTech companies.
The model convinced Rima Ramsarun, the former president of the Mauritian Association of Women Business Leaders, but she wants one step further. “The online payment system is a very interesting system, but we should also overcome our attachment to currencies like the euro or the dollar, because we lose with the exchange rate“says Rima Ramsarun.
Comesa Central Banks are working on integrating African currencies into the system and are planning consultations next month to harmonize cross-border digital payment protocols.
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