Zambia among first countries proposed for digital payment in COMESA region

Zambia has been proposed to be the first country in which a digital payment platform pilot project would be undertaken to promote financial inclusion in the Common Market for Eastern and Southern Africa (COMESA) region.

COMESA, through its Business Council (CBC), will therefore next week convene the 5th Digital Financial Inclusion Public-Private Dialogue in Malawi to validate the draft operational plan for the implementation of the project.

Teddy Soobramanien, CBC Chief Executive Officer, told the media in Lusaka on Thursday that this project would be piloted in eight countries, with Zambia being the first.

He said Malawi would be the second country where the project would be piloted.

“This is a game changer for COMESA. This scheme represents a remarkable opportunity to drive economic growth and financial empowerment for all Financial inclusion ecosystems are key to sustainable development and economic progress,” Soobramanien said.

Soobramanien explained that the focus of the project was on Small and Medium Enterprises (SMEs) and that those were engines of innovation, job creation and poverty reduction.

“By harnessing the power of digital technology, we can unlock the unprecedented opportunities for them, empowering them to realise their full potential and contribute to the region’s prosperity,” he said.

On the meeting for next week, Soobramanien said CBC would hold the Zambia-Malawi Proof of Concept Workshop to exemplify the feasibility and benefits of the retail payment platform.

He outlined that stakeholders from the banking sector, Information and Communication Technology (ICT) sectors, including mobile service providers were among the participants.

Jonathan Pinifolo, CBC Chief Operating Officer, said digital penetration among SMEs in the region was currently at 30 percent with most traders conducting cash transactions.

Pinifolo said the SMEs through the retail digital payment platform would be able to access finance from commercial banks using statements from the on-line transactions as collateral.

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