EIGHTY-SEVEN banks, including central banks from 15 countries under the Southern African Development Community (SADC) region, processed 152 660 transactions valued at E218.56 billion in August.
Meanwhile, over 5.4 million transactions worth E17.56 trillion were processed in the past eight months.
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This was revealed during the 6th SADC-RTGS User Group Conference, themed “Embracing New Frontiers in the SADC-RTGS Community”, held at the Central Bank Headquarters in Ezulwini yesterday.
The Southern African Development Community Real-Time Gross Settlement System (SADC-RTGS) is a cross-border regional payment and settlement platform that handles high-value transactions between financial institutions in near real time. It is operated by the South African Reserve Bank on behalf of participating central banks.
CROSS-BORDER EFFICIENCY
Central Bank of Eswatini (CBE) Governor Dr Phil Mnisi explained that each transaction is settled individually without being offset against others—ensuring efficiency in financial movement across the SADC region.
He highlighted that the SADC-RTGS forms part of the Protocol on Finance and Investment, which prioritises cross-border and intra-SADC transactions as a driver of economic integration and development.
“The efficient payment and settlement system allows central banks and financial institutions in SADC member countries to send and receive payments directly from any of the banks with operating accounts in the SADC-RTGS. This reduces costs by eliminating intermediary banks, as banks can manage liquidity in a single account instead of several accounts at different correspondent banks,” Dr Mnisi said.
MULTI-CURRENCY PLANS
The governor noted that payments currently settle in the South African rand (ZAR), but efforts are underway to include additional currencies such as the United States dollar (USD).
“Some countries have already onboarded their currencies into the system. There is a need to support operational and policy frameworks for additional SADC currencies, which would enhance intra-trade in the region,” he said.
Dr Mnisi added that the presence of multiple currencies affects foreign exchange dynamics, pricing, and monetary policy. He stressed that the system must also adapt to shifting consumer expectations and market behaviours, providing more convenience and responsiveness.
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