tl;dr
Uganda and COMESA are leading Africa's digital finance transformation with a CBDC, tokenized economy, and streamlined cross-border payments, aiming to boost financial inclusion and position the continent as a global economic leader.
**Uganda and COMESA Advance Digital Finance Initiatives to Transform Africa’s Economy**
Uganda has taken a bold step toward shaping Africa’s digital future with the launch of a central bank digital currency (CBDC) pilot and a tokenized economy, while the Common Market for Eastern and Southern Africa (COMESA) progresses its digital payments system to streamline cross-border trade. These initiatives aim to reduce transaction costs, enhance financial inclusion, and position the continent as a leader in innovative financial infrastructure.
### Uganda’s CBDC and Tokenized Economy: A Vision for the Future
In a groundbreaking move, Uganda partnered with blockchain infrastructure firm Global Settlement Network (GSN) and Diacente Group to launch what GSN calls “the world’s most advanced tokenized economy.” This project digitizes $5.5 billion in real-world assets across sectors like food production, minerals, renewable energy, and trade, bringing physical infrastructure—such as agro-processing hubs, mining operations, and solar plants—onto a blockchain.
The initiative, backed by Ugandan treasury bonds, introduces Uganda’s first CBDC, deployed on GSN’s permissioned blockchain. This digital shilling operates under strict compliance frameworks, including KYC and AML protocols, and is accessible via smartphone, enabling over 40 million people to engage in secure, high-value transactions.
“This represents a paradigm shift in how financial and industrial infrastructure is delivered in emerging markets,” said GSN in a press release. The project aligns with Uganda’s Vision 2040, aiming to transform the nation from a “peasant to a modern and prosperous country” within 30 years. It also supports the African Union’s Agenda 2063, seeking to position Africa as a global economic powerhouse.
Edgar Agaba, Chairman of Diacente Group, emphasized the initiative’s potential to unlock long-term value: “By integrating tokenization and CBDCs into Uganda’s development roadmap, we’re creating transparent, tech-driven ecosystems that attract capital and empower local industries.”
### COMESA’s Digital Payments Platform: Streamlining Regional Trade
Meanwhile, COMESA, the largest trade bloc in Africa, is advancing its Digital Retail Payments Platform (DRPP) to ease cross-border transactions. This system allows businesses to settle deals in local currencies, reducing reliance on foreign exchange and lowering costs.
Recent progress includes successful user trials for payment corridors between Malawi and Zambia, marking the first time cross-border trade within COMESA can be settled in local currencies. Kenyan Trade Minister Lee Kinyanjui called the initiative a “game-changer,” noting it reduces volatility, lowers transaction costs below 3%, and empowers SMEs, women, and youth to participate in regional trade.
The COMESA Clearing House (CCH) is spearheading the DRPP, which aims to provide seamless, inclusive payments for micro, small, and medium enterprises. “The DRPP represents CCH’s commitment to innovation in digital finance,” said the institution. “We’re laying the foundation for cross-border transactions as seamless as local payments.”
### A Synergistic Push for Digital Transformation
These initiatives highlight a growing trend of African nations leveraging technology to address economic challenges. Uganda’s CBDC and tokenization efforts focus on integrating real-world assets into a digital economy, while COMESA’s DRPP fosters regional integration by simplifying trade. Together, they underscore a shared vision of financial inclusion, reduced intermediation, and sustainable growth.
As Uganda and COMESA continue to refine their systems, their successes could serve as a blueprint for other African nations seeking to harness digital finance for broader economic empowerment. With 40 million Ugandans now able to access digital currency and COMESA’s 390 million people benefiting from streamlined trade, the continent is steadily building the infrastructure needed to compete on the global stage.
In the words of GSN’s Ryan Kirkley, “This is how we close the gap between digital finance and real-world impact.” As Africa’s digital economy matures, the region’s potential to drive innovation and prosperity has never been more tangible.