Angola Joins Regional Payment System to Boost Local-Currency Trade

The Angolan kwanza has officially joined the Southern African Development Community Real-Time Gross Settlement system, ending the South African rand’s position as the platform’s sole settlement currency. South African Reserve Bank Governor Lesetja Kganyago and Banco Nacional de Angola Governor Manuel Tiago Dias announced the integration on Monday, marking a major shift for regional trade infrastructure across Southern Africa.

How the SADC-RTGS System Operates

Operated by the South African Reserve Bank on behalf of participating central banks, the SADC-RTGS platform connects financial institutions across the regional bloc. The rand’s dominance reflected South Africa’s position as the region’s largest and most integrated financial market, but it also meant that businesses trading between other SADC economies often needed to convert payments through the South African currency. Participants conducting transactions in kwanza will now be able to settle directly in the currency instead of first converting payments into rand or another intermediary currency. The South African Reserve Bank said this would reduce foreign-exchange conversion requirements, lower transaction costs and allow businesses to receive funds more quickly.

Impact on Angola-South Africa Trade Flows

Previously, businesses trading between Angola and other regional partners had to convert payments through the rand or another intermediary currency, exposing deals to extra exchange-rate costs and longer processing times. Direct settlement in kwanza removes these hurdles, allowing approved banks to clear eligible transactions immediately.

Broader Push for Local-Currency Settlement

The addition of the kwanza supports a wider regional strategy to reduce reliance on non-SADC currencies and lower the cost of intra-African trade.

SADC-RTGS Versus PAPSS

Frequently Asked Questions

What is the SADC-RTGS system?

It is a regional real-time gross settlement infrastructure managed by the South African Reserve Bank that allows participating central and commercial banks across 15 Southern African countries to settle cross-border transactions directly.

Why is adding the Angolan kwanza important?

According to the South African Reserve Bank, direct kwanza settlement reduces foreign-exchange conversion requirements, lowers transaction costs, and lets businesses receive funds more quickly without routing through intermediary currencies like the rand.

Which currencies will be added next?