Comesa works on digital financial inclusion for SMEs
THE Common Market for Eastern and Southern Africa through its Business Council (CBC) and the Trade and Development Bank, have partnered in spearheading the implementation of digital financial inclusion in the region.
The initiative targets players in the Small and Medium Enterprises (SMEs) within the Comesa region.
In a statement, Comesa said the CBC and the Trade and Development Bank (TDB) last week convened a high level Public-Private Dialogue, which sought to consider and validate the Comesa digital integrated common payment policy and framework for SMEs.
The dialogue was held under the theme, “Towards the Comesa Digital Integrated Common Payment Policy for Micro Small and Medium-sized Enterprises (MSMEs)”.
“The public-private dialogue brought together nine pilot-study countries, central bank governors, Ministers of Finance, Information Communication Technology regulators, manufacturers, mobile network operators, commercial banks and MSMEs to consider and validate the Comesa Digital Integrated Common Payment Policy and Framework for SMEs.
“During the dialogue, deliberations attached great importance to partnerships, regulatory dialogue and consumer protection as key success factors for the digital financial inclusion of SMEs,” said Comesa.
Comesa assistant secretary general in charge of programmes Ambassador Dr Kipyego Cheluget was quoted saying the formulation of the policy on digital integrated common payment would be the foundation of an infrastructure that supports African SMEs to grow into prosperous businesses over the coming years.
“We’ve seen a willingness from competitive forces in the industry to prepare a strong pathway that will facilitate eased digital payments across markets,” he said.
CBC board chairperson Mr Marday Venkatasamy said the digital payment system platform will reap dividend for Comesa and Africa at large.
In this context, it can bring enormous potential gains in growth of regional trade (sourcing and supply) which is currently below 20 percent.
“But turning this vast potential into reality will require the collective efforts of our governments, the private sector and development partners,” he said.
Of late, CBC has been implementing the Digital Financial Inclusion Programme to support the design, development and deployment of an integrated digital financial services infrastructure that is low-cost and fraud resistant that serves MSMEs, particularly women and youth, who are at the bottom of the financial pyramid.
Speaking at the same occasion, TDB president Mr Admassu Tadesse, pointed out that financial inclusion involves multiple stakeholders, from policymakers and regulators to private industry, including employers, educational systems, communities and individuals.
It has been noted that facilitating and promoting MSMEs’ participation in Digital Financial Inclusion can accrue benefits such as economic growth, macroeconomic policy effectiveness and job creation. —chronicle.cl.w
