COMESA states urged to embrace the regional payments and settlement system
UZULWINI, November 24, 2024 — Central Banks in COMESA Member States have been called upon to utilise Regional Payments and Settlement System [REPSS] for intra-COMESA transactions, owing to its potential to enhance regional trade. The REPSS was designed to enable importers and exporters in COMESA Member States to settle and receive payment for goods and services through an efficient and cost-effective platform. Currently, only nine apex banks are active on the platform.
Addressing the 44th Meeting of the Bureau of the COMESA Committee of Governors of Central Banks in Ezulwini, Eswatini, recently, COMESA Secretary General Chileshe Kapwepwe said REPSS has high potential to spur regional development.
“The collaborative approach being taken will ensure that REPSS significantly contributes to the expansion of intra-COMESA trade, and I urge all member central banks to expeditiously use REPSS for payment of their intra-COMESA transactions,” she said.
The Governors meeting was convened to among others, review and endorse the financial plans of the COMESA’s Clearing House [CCH] which implements the REPSS, and the COMESA Monetary Institute [CMI].
The Secretary General noted that ongoing negotiations in critical service sectors such as finance, transport, and energy are critical in overcoming trade barriers and accelerating regional trade and investment. However, she also acknowledged the challenges faced by the region, including geopolitical tensions, climate issues, and a global cost-of-living crisis that threaten economic stability and integration efforts.
“These disruptions are straining regional economies, leading to persistent issues such as global supply chain disturbances and rising inflation,” she said and stressed the importance of incorporating these risks into monetary policy frameworks and supporting sustainable development initiatives to mitigate adverse effects.
Further she said:
“Despite significant advancements in regional integration, with intra- COMESA trade rising from US$ 1.5 billion in 2000 to US$ 14 billion in 2023, it still represents only 7 percent of the region’s total trade. To address this, I wish to reiterate the crucial roles of the CMI and CCH in achieving financial integration objectives.”
Governor of the Central Bank of Eswatini and Chairperson of the Committee, Dr. Phil Mnisi, emphasised the central banks’ vital role in economic convergence and policy coordination. He acknowledged the challenges in harmonising monetary policies, stressing the need for a resilient financial ecosystem that benefits all member states. He expressed concern over the low participation in REPSS.
Mnisi highlighted the necessity for modernised payment systems and financial inclusion to adapt to evolving economic landscapes. He urged all central banks to leverage REPSS to enhance trade within the region.
He informed the meeting about imminent upgrade to REPSS, including mandatory migration to the ISO 20022 standard, aimed at improving interoperability with other regional payment systems.
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