COMESA CLEARING HOUSE
REGIONAL PAYMENT &
SETTLEMENT SYSTEM (REPSS)
November 2012
COMESA MEMBERSHIP
COMESA AT A GLANCE
TOTAL AREA
POPULATION
MEMBERSHIP
FTA MEMBERSHIP
AVERAGE GROWTH RATE
OF REAL GDP
INTRA-COMESA TRADE
12.8 MILLION SQ. KM
498 MILLION
19 COUNTRIES
20 CENTRAL BANKS
15 COUNTRIES
5.1%
$ 18.8 BILLION
SELECTED ECONOMIC COMMUNITIES/GROUPINGS INTRA-REGIONAL TRADE LEVELS (%)
COMESA
ASEAN
ECOWAS
EUROPEAN UNION -27
EAST ASIA (INCLUDING JAPAN)
2011
7.8
24.6
20.7
60.5
45.9
PAYMENT & SETTLEMENT FLOWS
Traditional Cross Border Payment
Delays
Correspondent fees
REPSS Model
7
REPSS
T+0
T+0
T+1
BENEFITS
 REDUCES NUMBER OF SETTLEMENT TRANSACTIONS
 REDUCES FOREIGN CORRESPONDENT BANKING CHARGES
 REDUCES COST OF INTRA-REGIONAL TRADE
 REDUCES SETTLEMENT TIME PERIOD
 GUARANTEES PROMPT PAYMENT TO EXPORTER
 BUILDS TRUST AMONG TRADERS
 SETTLEMENT FINALITY
 LEVELS PLAYING FIELD FOR COMMERCIAL BANKS
 EVENTUALLY ALLOWS TRADE ON OPEN ACCOUNT
LETTER OF CREDIT PROCESS UNDER REPSS
• LC PROCESS TAKES PLACE OUTSIDE OF REPSS
• IT IS THE NORMAL LC BUT WILL STATE “PAYMENT TO BE MADE THROUGH
REPSS” (FIELD 47A OF SWIFT MT700)
• LC DOES NOT REQUIRE CONFIRMATION - INVOLVEMENT OF THE CENTRAL
BANKS ACTS AS GUARANTEE OF PAYMENT
• FOR CONFIRMATION INSTRUCTIONS UNDER FIELD 49 OF THE MT700, THE
ISSUING BANK STATES ‘WITHOUT’.
• REPSS PAYMENT PROCESS GETS TRIGGERED AT THE TIME OF MATURITY
OF THE LC
REPSS LIVE OPERATIONS
• LIVE OPERATIONS STARTED ON 3 OCTOBER 2012
• FIRST TRANSACTION BETWEEN BRAMER BANK OF MAURITIUS AND FINA
BANK OF RWANDA, THROUGH THEIR RESPECTIVE CENTRAL BANKS
• BANK OF MAURITIUS AND NATIONAL BANK OF RWANDA HAVE BEEN
USING THE SYSTEM
• MORE CENTRAL BANKS EXPECTED TO COME ON BOARD BEFORE END OF
THE YEAR – KENYA, MALAWI, SUDAN, SWAZILAND, UGANDA AND
ZAMBIA
MEMBER STATES SAVINGS WHEN CHANNELING PAYMENTS THROUGH REPSS - 2010
REPSS Charges (0.25%)
COUNTRY
Total Imports
US$ M
ZAMBIA
1,394.2
LIBYA
1,378.3
EGYPT
961.8
CONGO DR
806.1
SUDAN
767.9
UGANDA
586.9
KENYA
504.1
RWANDA
415.2
ETHIOPIA
286.2
ZIMBABWE
271.2
MALAWI
231.8
MADAGASCAR
197.3
ERITREA
155.5
MAURITIUS
125.3
BURUNDI
105.9
DJIBOUTI
78.1
SEYCHELLES
47.0
COMOROS
13.0
SWAZILAND
10.7
TOTAL
8,336.5
Estimated Transaction Estimated costs
Costs including LCs of Confirming
confirmation costs (5%)
LCs (1%)
US$ M
US$ M
69.7
13.9
68.9
13.8
48.1
9.6
40.3
8.1
38.4
7.7
29.3
5.9
25.2
5.0
20.8
4.2
14.3
2.9
13.6
2.7
11.6
2.3
9.9
2.0
7.8
1.6
6.3
1.3
5.3
1.1
3.9
0.8
2.4
0.5
0.7
0.1
0.5
0.1
416.8
83.4
Central Bank
CCH 0.2%
0.05%
US$ M
US$ M
2.8
0.7
2.8
0.7
1.9
0.5
1.6
0.4
1.5
0.4
1.2
0.3
1.0
0.3
0.8
0.2
0.6
0.1
0.5
0.1
0.5
0.1
0.4
0.1
0.3
0.1
0.3
0.1
0.2
0.1
0.2
0.0
0.1
0.0
0.0
0.0
0.0
0.0
16.7
4.2
Savings by Member
States through REPSS
(where LC Confirmation
is not required)
US$ M
10.5
10.3
7.2
6.0
5.8
4.4
3.8
3.1
2.1
2.0
1.7
1.5
1.2
0.9
0.8
0.6
0.4
0.1
0.1
62.5
Estimated Savings by Member States
Transaction costs through REPSS by Trading
when trading
through Documentary
through Open Collection & ultimately on
Account (1%)
Open Account
US$ M
US$ M
13.9
52.3
13.8
51.7
9.6
36.1
8.1
30.2
7.7
28.8
5.9
22.0
5.0
18.9
4.2
15.6
2.9
10.7
2.7
10.2
2.3
8.7
2.0
7.4
1.6
5.8
1.3
4.7
1.1
4.0
0.8
2.9
0.5
1.8
0.1
0.5
0.1
0.4
83.4
312.6
THANK YOU