Angolan Kwanza Joins SADC Cross-Border Payment System

The kwanza becomes the second settlement currency in the system, which has operated exclusively with the South African rand since its launch in 2013.

The Angolan kwanza has officially joined the Southern African Development Community Real-Time Gross Settlement (SADC-RTGS) system as a settlement currency, marking an important milestone in efforts to strengthen regional trade and financial integration across Southern Africa.

The announcement was made by South African Reserve Bank (SARB) Governor Lesetja Kganyago and Banco Nacional de Angola Governor Manuel Tiago Dias, who said the move will make cross-border payments faster, more efficient and less costly for businesses and financial institutions operating within the region.

Faster and Cheaper Regional Payments

According to the South African Reserve Bank, adding the kwanza to the SADC-RTGS system supports the region's payment modernisation efforts and aligns with the Group of Twenty (G20) objective of improving cross-border payments by reducing costs and increasing transaction speed. The kwanza becomes the second settlement currency in the system, which has operated exclusively with the South African rand since its launch in 2013.

The SADC-RTGS platform, operated by the South African Reserve Bank on behalf of the SADC Committee of Central Bank Governors, currently processes transactions worth around R250.7 billion every month and serves 15 participating countries.

Boost for Regional Trade

The inclusion of the kwanza will allow participating banks and businesses to settle eligible transactions directly in Angola's national currency without relying on multiple foreign exchange conversions.

This is expected to lower transaction costs, improve cash flow management and give businesses quicker access to funds when trading across Southern Africa.

The Reserve Bank said expanding the range of settlement currencies will also make it easier for companies and customers to conduct business using local currencies, supporting greater regional commerce and reducing dependence on external currencies.

More Local Currencies to Follow

The South African Reserve Bank said additional regional currencies are expected to join the SADC-RTGS system in the future, with the Botswana pula identified as one of the next currencies planned for integration.

Officials believe that allowing more local currencies to participate in the regional payment system will strengthen financial cooperation among SADC member states while reducing the need for foreign intermediaries in cross-border transactions.

The move is part of a broader strategy to deepen regional financial integration, encourage greater use of African currencies in trade and enhance the resilience of Southern Africa's financial system.

By expanding the multi-currency capability of the SADC-RTGS platform, member countries are expected to benefit from lower business costs, more efficient payment systems and stronger regional economic cooperation.