Africazine:
The integration of the Angolan kwanza into the SADC real-time settlement system marks a pivotal moment for regional trade.
This move allows direct payments in the Angolan currency, reducing costs and settlement times for cross-border transactions. The system, which processed approximately 3.77 billion dollars in trade and inter-bank transactions among its 15 member states in 2025, now enhances financial integration across southern Africa.
Angolan Kwanza Joins SADC Settlement System
The Southern African Development Community (SADC) has officially added the Angolan kwanza to its real-time gross settlement system. This inclusion aims to facilitate intra-regional commerce by allowing direct payments in local currencies, alongside the South African rand. By doing so, the SADC seeks to eliminate the need for conversions to the U.S. dollar, which have historically complicated trade and increased costs.
With this integration, businesses can now issue and receive payments in their own currency, streamlining operations and reducing delays associated with cross-border settlements. This development is expected to enhance trade flows and lower overall transaction costs, benefiting member states significantly.
Context of the Kwanza’s Inclusion
The decision to incorporate the kwanza is part of a broader strategy to expand the SADC’s currency base. Future plans include adding other regional currencies, such as Botswana’s pula and Mozambique’s metical. This diversification is intended to lower user exposure to currency risk and enhance the system’s appeal.
Angola’s central bank governor, Manuel Tiago Dias, emphasized that while the immediate impact on international reserves may be limited, the move will facilitate faster and cheaper commercial transactions. This step is viewed as a commitment to deeper economic interdependence among southern African nations.
Next Steps for SADC RTGS
- Continue the inclusion strategy for local currencies.
- Expand the system to include Botswana’s pula and Mozambique’s metical.
- Enhance the appeal of the SADC RTGS to a wider user base.
This integration of the Angolan kwanza is a significant advancement for trade in southern Africa.
