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It is the first currency admitted to the regional mechanism since it went live in 2013. Participating financial institutions can now settle cross-border payments directly in the Angolan currency.
The Angolan kwanza has joined the Southern African Development Community (SADC) real-time cross-border payment system, becoming the first new settlement currency admitted to the mechanism since its launch in 2013.
Under the integration, participating financial institutions are able to process and settle cross-border payments in kwanzas where the applicable criteria are met. The change reduces reliance on intermediary currencies in transactions between Angola and other markets in the region, shortening foreign-exchange conversion chains and the costs attached to them.
For Angolan businesses, exporters and consumers, the ability to make regional payments in local currency may increase the predictability of transactions and ease participation in regional trade. The effect is described as particularly significant for small and medium-sized enterprises, which are typically more exposed to the cost and complexity of currency operations.
“Greater interoperability between payment systems is essential to building a more connected and inclusive digital economy in Africa,” said Kátia da Conceição Ubisse, Country Manager for Visa in Angola. She added that the kwanza’s entry into the SADC system “is an important step towards facilitating regional transactions and creating new opportunities for businesses and consumers”.
The move comes amid deepening economic ties across the region and growing investment in interoperable digital payment infrastructure, in line with the objectives of the African Continental Free Trade Area (AfCFTA).
“Payment innovation goes far beyond technology. It is about creating the conditions for people and businesses to access the tools they need to take part in the formal economy and grow within it,” Ubisse said.
The SADC cross-border payment system began operating in 2013 and is used by banks across the region to settle transactions between member states.
