Comesa Central Banks Face Policy Hurdles in Boosting Intra-Regional Trade

Central bank governors and finance experts from the Common Market for Eastern and Southern Africa (Comesa) region gathered at the Comesa Economic Symposium in Lilongwe to discuss policy coordination for macroeconomic stability and financial sector development. The meeting aimed to address challenges hindering intra-regional trade, with countries like Malawi struggling to utilize commercial opportunities within the bloc. The Comesa region has an economic size worth $1.1 trillion.

Finance Minister Joseph Mwanamveka expressed concerns about the high cost of trade and payments within the region, urging the gathering to find solutions to unlock regional economic potential. He noted that geopolitical tensions, disruptions to global supply chains, and economic uncertainties continue to test the resilience of Comesa economies. Mwanamveka emphasized the need for policy coordination to address specific issues hindering regional trade and financial integration.

One of the solutions being implemented is the Regional Payment and Settlement System (REPSS), which aims to ease cross-border payments, reduce costs, and allow local currency use for cross-border trade. Reserve Bank of Malawi Governor George Partridge highlighted the importance of policy convergence to enable the region to tackle issues in unison, citing that external shocks cannot be addressed by individual countries alone.

Comesa Assistant Secretary General for Administration and Finance, Lev Haman, called on member states to ratify and operationalize protocols that strengthen regional economies. He emphasized the need for regional policy integration to promote economic growth and development. The symposium brought together stakeholders to discuss and address policy hurdles hindering intra-regional trade in the Comesa region.

The Comesa Economic Symposium focused on policy coordination, financial sector development, and modernizing cross-border payment integration. The meeting provided a platform for stakeholders to share experiences, challenges, and solutions to promote regional economic integration. Participants discussed ways to address logistical and payment system bottlenecks hindering intra-regional trade.

Malawi and other Comesa member states face challenges in utilizing commercial opportunities within the bloc due to policy hurdles. The country's Reserve Bank Governor, George Partridge, emphasized the need for policy convergence to address external shocks and promote regional economic stability. The symposium aimed to find solutions to these challenges and promote economic growth in the region.

The implementation of REPSS and policy coordination are expected to ease cross-border payments, reduce costs, and promote local currency use for cross-border trade. Comesa member states are working to address policy hurdles and promote regional economic integration, with the aim of unlocking regional economic potential and promoting economic growth and development.

Key points

• Comesa central banks and finance experts meet to address logistical and payment system bottlenecks hindering intra-regional trade in the $1.1 trillion economic bloc.