Deputy Governor of the Reserve Bank of Malawi, Kisu Simwaka, says regional efforts to harmonise and modernise payment systems will boost cross-border trade and reduce reliance on foreign exchange.
Speaking at a workshop in Lilongwe, Simwaka said aligning systems within the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC) will enable countries to trade more efficiently using local currencies.
He said this would ease forex pressure by reducing dependence on foreign currencies for regional trade.
“Intra-African trade has grown from about 10 per cent to around 20 per cent and continues to rise. Digital payment systems will further cut costs and improve efficiency,” Simwaka said.
He further said the rollout across COMESA’s 21 member states is underway, with infrastructure in place and the platform expected to go live soon.
President of the Bankers Association of Malawi, Phillip Madinga, said the digital platform is a major step, especially for retail payments.
“The system complements earlier systems by the COMESA Clearing House and will support SMEs and fintechs, particularly in cross-border trade,” Madinga said.
He further said the platform, currently being piloted between Malawi and Zambia, will allow transactions in local currencies, lowering costs and reducing forex pressure.
He urged businesses to use such platforms to drive production by investing in machinery for agro-processing and manufacturing to expand exports and generate forex.
Executive Secretary of the COMESA Clearing House, Jedida Ndebele, said the infrastructure to support seamless transactions is ready.
She said intra-COMESA trade reached about $14 billion in 2024, signaling strong growth potential if payment barriers are addressed.
“Improving payment systems will make transactions faster, safer and cheaper, especially for SMEs, women and youth,” Ndebele noted.
The initiative is part of wider efforts to promote intra-African trade, deepen integration and support businesses through digital financial solutions.
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