Yasmin Bilal
The Angolan kwanza has become the second currency to be used in the Southern African Development Community’s regional payment system, marking a significant step towards easier cross-border trade in the region.
The announcement was made on Monday by South African Reserve Bank Governor Lesetja Kganyago and Banco Nacional de Angola Governor Manuel Tiago Dias.
The SADC Real Time Gross Settlement system has settled transactions only in South African rand since it was introduced in 2013.
The addition of the kwanza means banks and businesses will now be able to settle eligible payments directly in Angola’s currency.
The change is expected to reduce foreign exchange conversion costs and speed up cross-border payments for businesses and customers trading in kwanza.
The move forms part of SADC’s drive to strengthen regional financial integration and encourage greater use of local currencies in trade. It also supports the G20’s goal of making international payments faster, cheaper and more efficient.
The payment platform links 15 SADC member states and processes an average of R250.7 billion in transactions each month. More regional currencies, including Botswana’s pula, are expected to be added in future.
In 2025, trade and interbank transactions between Angola and the other SADC countries totalled about US$3.77 billion across nine currencies. South Africa accounted for nearly US$2.99 billion of that value, underlining the close financial ties between the two economies.
Regional central bank governors say expanding the number of settlement currencies will make it easier for businesses to trade across borders, improve access to funds and reduce reliance on currencies from outside the SADC region.