The Southern African Development Community has added the kwanza as a settlement currency in its real-time gross settlement system, alongside the South African rand, after the system previously used only the rand. The move aims to lower transaction costs, ease regional payments, and support trade and investment.

A second currency enters the system

Manuel Tiago Dias, Governor of Banco Nacional de Angola, announced that the kwanza had been accepted as a settlement currency in the SADC-RTGS, alongside reporting that the system now includes a second currency.

The SADC-RTGS platform has operated since 2013 and previously used only the rand for settlement. The system serves 15 participating SADC member states and settles cross-border transactions in real time.

The kwanza’s addition gives Angolan banks and their clients a direct regional settlement option. That should reduce foreign-exchange conversions for transactions priced in local currency. It should also lower costs and improve payment speed for cross-border trade.

Towards multi-currency settlement

SADC said the addition of the kwanza is part of efforts to expand the currencies supported by the settlement system and reduce reliance on costlier correspondent banking arrangements.

That direction matters for investors and lenders. A broader currency base can improve cash management for firms trading across the region. It can also make regional supply chains more efficient. Reuters noted that the platform was designed to replace costlier correspondent banking arrangements for regional transactions.

The timing fits a wider policy push on cross-border payments. SADC linked the change to broader efforts to modernise payment systems and support faster, cheaper regional transfers. The system is expected to expand to additional regional currencies, including the Botswana pula, according to reports.

For investors, the key question is execution. If SADC expands the platform smoothly, the system could strengthen formal trade links across Southern Africa and support deeper financial integration.

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