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THE Common Market for Eastern and Southern Africa (Comesa) says over US$138 million has been transacted through the regional payment and settlement system by nine participating central banks including Zimbabwe in the past five years
The other eight countries whose central banks are on the Comesa Regional Payment and Settlement System (REPSS) are Egypt, Kenya, Malawi, Mauritius, Rwanda, Swaziland, Uganda, Sudan and Zambia.
The countries are at advanced stages of preparations for live operations.
Comesa clearing house executive secretary Mr Mahmood Mansoor was quoted as saying the value of transactions made through the REPSS was expected to grow as more central banks from within and outside the Comesa region have shown interest to join.
“Comesa Regional Payment and Settlement System (REPSS) has recorded over US$138 million and nearly one million Euros in value transacted through the nine participating central banks over the last five years ending January 31, 2020,” said Comesa in a latest statement.
Mr Mansoor said the reserve banks of Tunisia and Somalia have been engaged by the Comesa Clearing House for admission while non-Comesa countries such as Nigeria and Ghana have expressed keen interest to join the REPSS.
“With the nine central banks on the live platform, and new ones coming on board, the value of transactions processed on the system is expected to rise,” he said.
REPSS is a multilateral netting system with end-day settlement in a single currency. It allows regional trade transactions using local currencies thus reducing dependency on US dollar and euros.
This cuts on collateral requirements as central banks are directly involved in the system and trade is mainly among members.
“Member states have embraced the system as it boosts regional trade by eliminating mistrust among traders as their respective central banks are involved,” he said.
At present, the bank of Mauritius acts as Settlement Bank of the system. At the 2018 Comesa Summit, the Heads of State and Government urged member states whose reserve banks had not yet met the requirements for joining REPSS to do so and start transacting.
The leaders’ call was motivated by the need to stimulate economic growth through enhanced intra-regional trade by enabling importers and exporters to pay and receive payment for goods and services through an efficient and cost-effective platform.
Comesa is a free trade area with 21 member States.
The trading bloc was formed in December 1994, replacing a Preferential Trade Area, which had existed since 1981.
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