By Business Insider Reporter
Digital investment facilitation is rapidly becoming one of the most strategic tools for deepening regional integration and unlocking private capital within the Common Market for Eastern and Southern Africa (COMESA), as the bloc seeks to lower the cost of doing business, improve transparency and attract long-term investment.
According to the COMESA Investment Report 2025, the region is increasingly turning to digital platforms, e-governance tools and harmonised online systems to simplify investment procedures, reduce bureaucratic bottlenecks and create a more predictable business environment for both domestic and foreign investors.
COMESA, which comprises 21 member states including Tanzania, Kenya, Uganda, Zambia, Rwanda and Egypt, has long been challenged by fragmented regulatory regimes, manual licensing systems and slow administrative processes that deter investors. Digital investment facilitation is now being positioned as a practical response to these long-standing constraints.
From paperwork to platforms
At the centre of this shift is the move from paper-based investment approval processes to integrated digital one-stop centres. These platforms allow investors to register companies, apply for licences, obtain tax identification numbers and access aftercare services online, significantly reducing time and compliance costs.
The COMESA Secretariat notes that countries which have adopted digital investment facilitation tools have recorded faster investment approvals, better coordination among government agencies and improved investor confidence.
In some member states, procedures that previously took several months can now be completed in a matter of days.
Digitalisation has also helped to curb discretionary decision-making by officials, a key concern frequently raised by investors. By standardising processes and making requirements publicly accessible online, COMESA member states are strengthening transparency and accountability in investment administration.
Supporting regional integration goals
Digital investment facilitation is closely aligned with COMESA’s broader integration agenda and the African Continental Free Trade Area (AfCFTA). As regional value chains expand, investors increasingly require predictable, interoperable systems that function across borders.
The COMESA report highlights ongoing efforts to harmonise digital investment facilitation standards, including common data requirements, shared investor information portals and cross-border cooperation between investment promotion agencies.
These initiatives aim to reduce duplication and allow investors operating in multiple COMESA countries to navigate regulatory environments more easily.
For landlocked countries such as Zambia, Rwanda and Burundi, digital platforms are particularly critical. By lowering administrative barriers, they help offset geographical disadvantages and improve access to regional and global investment flows.
Technology as a competitiveness lever
Beyond administrative efficiency, digital investment facilitation is increasingly being framed as a competitiveness issue. Global investors now expect real-time information, online tracking of applications and digital aftercare services.
COMESA’s analysis shows that countries with advanced digital investment systems are better positioned to attract investors in high-growth sectors such as manufacturing, logistics, renewable energy and digital services .
These sectors are central to job creation and industrialisation agendas across Eastern and Southern Africa.
Importantly, digital platforms also generate high-quality investment data. This allows governments to analyse investor trends, monitor project implementation and design more targeted investment policies based on evidence rather than assumptions.
Capacity gaps and uneven progress
Despite the momentum, progress remains uneven across COMESA. The report identifies gaps in digital infrastructure, skills and institutional coordination as key obstacles, particularly in least developed member states .
Limited broadband coverage, cybersecurity concerns and weak integration between government databases continue to undermine the full benefits of digital investment facilitation. In some countries, digital platforms exist but are not fully operational or still require parallel manual processes.
To address these challenges, COMESA is working with development partners to provide technical assistance, capacity building and financing for digital public infrastructure linked to investment facilitation . The emphasis is on ensuring that digitalisation translates into real efficiency gains rather than becoming another layer of bureaucracy.
Implications for Tanzania and the region
For Tanzania, digital investment facilitation aligns with national priorities to improve the business environment, attract strategic investors and position the country as a regional gateway.
As a major COMESA economy and logistics hub, Tanzania stands to benefit significantly from interoperable digital systems that support cross-border investment and trade.
At the regional level, COMESA views digital investment facilitation not as a standalone reform, but as part of a wider ecosystem that includes investment protection, dispute resolution and policy coherence. The long-term objective is to create a seamless, investor-friendly region that can compete effectively for global capital. As Africa intensifies efforts to close its development financing gap, COMESA’s experience suggests that digital investment facilitation is no longer optional. It is fast becoming a cornerstone of modern investment policy – one that could redefine how capital flows into Eastern and Southern Africa in the years ahead.
