South African (SA) Reserve Bank Governor Lesetja Kganyago said this Monday that the Angolan Kwanza has become the first new settlement currency added to the Southern African regional payment system since its 2013 launch, marking a milestone in the expansion of the platform beyond the SA Rand.
The system facilitates real-time settlement of cross-border transactions across the Southern African Development Community (SADC) and was developed to facilitate funds transfer for cross-border payments in the region to promote trade and investment. It replaced costlier correspondent banking arrangements previously used for regional transactions.
Trade and interbank transactions between Angola and the other 14 SADC states amounted to approximately $3.77 billion across nine currencies in 2025, SARB data showed.
SA accounted for a significant share of these flows, at nearly $2.99 billion, representing about 60% of transaction volumes and 79% of total value.
Payment reforms were a key issue under SA’s G20 Presidency. Kganyago called for greater interoperability and regulatory alignment in sub-Saharan Africa.
Speaking at a press briefing in Pretoria with the Banco Nacional de Angola Governor Manuel Tiago Dias, Kganyago said the introduction of the Kwanza was a demonstration of regional integration in action.
“It strengthens regional financial connectivity, and it shows that Africa can build sophisticated financial market infrastructure that responds to African priorities”, said Kganyago.
Operated by the SARB on behalf of the region’s central banks, the real-time settlements system has grown since its 2013 launch to include 15 member states and up to 89 participating banks.
SADC- Real-Time Gross Settlement system is one of several initiatives currently underway to improve cross-border payments across Africa, alongside the continent-wide Pan-African Payment and Settlement System and the African Continental Free Trade Area Protocol on Digital Trade.
Sub-Saharan Africa’s average person-to-person remittance cost sits above 4%, well above the G20’s global target of an average cost of 1% by 2027.
–Reuters–
