Revitalizing Regional Trade: Comesa Payment System Expands Opportunities for Malawi and Zambia Businesses

Key Business Points

• The Common Market for Eastern and Southern Africa (Comesa) has launched a digital cross-border payment system, linking Malawi and Zambia, to facilitate instant and low-cost transactions in local currencies.
• The Digital Retail Payments Platform integrates banks and non-bank financial players, including fintech and mobile-money operators, to reduce dependence on hard currency settlements and promote intra-African trade.
• The platform has the potential to conserve foreign exchange reserves and strengthen the kwacha’s regional utility in Malawi, where mobile-money penetration is currently below 45 percent.

The launch of the Digital Retail Payments Platform (DRPP) by Comesa marks a significant milestone in digital financial integration in the region. The platform enables traders and consumers in Malawi and Zambia to make instant, low-cost transactions in their local currencies, without relying on scarce foreign exchange. This development is expected to remove dependency on hard-currency settlements and empower African traders to trade more efficiently, securely, and inclusively. According to Comesa chief operating officer Jonathan Pinifolo, the platform will promote intra-African trade and provide a potential lifeline for Malawi’s economy.

The pilot phase of the DRPP is currently active between Malawi and Zambia, following months of integration testing and collaboration among central banks, fintech providers, and commercial banks. Early adopters in Malawi include TNM Mpamba, FDH Bank, and Finca Malawi. The platform’s launch coincides with a surge in digital finance adoption across Africa, with 61 percent of adults in developing economies now making or receiving digital payments, according to the World Bank’s Global Findex 2025 report.

The DRPP has been hailed as a turning point for intra-African trade by regional leaders, including Comesa secretary-general Chileshe Mpundu Kapwepwe and Comesa chairperson William Ruto, who is also the President of Kenya. Ruto urged member states to invest in digital infrastructure and interoperable payment platforms to make the region the most efficient place for trade. The launch of the DRPP is expected to have a positive impact on small-scale traders in Mchinji, a district that borders Zambia, by providing faster settlements and fewer risks associated with carrying cash across borders.

As Comesa secretary-general Chileshe Mpundu Kapwepwe noted, the platform offers speed, affordability, and trust, and will provide dignity for woman traders who can now travel safely without cash. The DRPP is a significant development for Malawi’s business community, particularly in the context of zinthu zikufalitsa kwa biashara (business facilitation) and kulipira malonda (payment of goods). With the launch of the DRPP, Malawi’s business sector can expect to see improved trade efficiency, reduced transaction costs, and increased economic growth.

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