By: Nghiinomenwa-vali Hangala
The Angolan kwanza has become the second settlement currency to be introduced in the SADC real-time gross settlement (SADC-RTGS) system, which has settled transactions exclusively in South African rand since its inception in 2013.
The South African Reserve Bank, the SADC Committee of Central Bank Governors and the Central Bank of Angola made the announcement this week.
This means there won’t be a conversion of currencies and extra fees when transacting in Kwanza in SADC.
The SADC governors revealed that the move is in line with efforts to boost Southern African Development Community (SADC) trade and financial integration.
The regional body explained that by enabling direct settlement in Kwanza, participants transacting in the currency can reduce foreign exchange conversion requirements, helping lower transaction costs for participants and their customers.
The Committee has also hinted at its intention to onboard additional regional currencies, such as the Botswana pula, in due course.
There was no mention of the Namibian dollar, which is currently pegged to the Rand, which is used for trading.
The Committee added that enabling a multi-currency capability in the SADC-RTGS system is one of the strategic initiatives to strengthen regional financial integration, promote greater use of local and regional currencies in cross-border trade and reduce reliance on non-SADC currencies.
“A more diverse set of settlement currencies in the system makes it easier for businesses and customers to transact across SADC countries in local currencies,” the Governors Committee wrote.
Faster settlement also helps businesses manage cash flow more efficiently and access funds more quickly when trading across the region, they noted.
There are currently 15 countries participating in the SADC-RTGS system.
The SADC-RTGS system, which marked 13 years of operation on 13 July 2026, processes R250.7 billion worth of transactions per month. It is operated by the South African Reserve Bank, as appointed by the SADC Committee of Central Banks Governors.
In 2025, trade and interbank transactions between Angola and the other 14 SADC states amounted to approximately US$3.77 billion across nine currencies.
However, South Africa accounted for a significant share of these flows, at nearly US$2.99 billion, representing about 60% of transaction volumes and 79% of total value.
According to the Central banks’ governors, the SADC-RTGS system supports economic growth by enabling a more connected regional payments system, reducing friction in economic activity and helping to create an environment that is conducive to trade, investment and job creation.
Moreover, payments are safer and more secure because transactions are settled through central banks.
There is also a reduction in the delays and risks associated with using multiple banks and foreign intermediaries to process payments.
By joining the SADC-RTGS system, a country can enable its currency to play a role in regional trade and finance and reduce reliance on foreign currencies and intermediaries.
At the same time, it also lowers the cost of doing business across borders in Southern Africa.
Currently, most of Africa’s intra-Africa trade happens in Southern Africa due to various financial connectivity and trade arrangements.
Payment settlements, currency exchange, and connectivity infrastructure have been cited as the main limiting factors to increased intra-Africa trade.
erastsus@thevillager.com.na
