Africa’s largest economy takes major step towards local-currency trade as Angola’s kwanza joins regional payment system
South Africa has reached a significant milestone in regional trade by integrating the Angolan kwanza into the Southern African Development Community Real-Time Gross Settlement system. This development marks the first time a currency other than the South African rand serves as a settlement asset on the platform since its 2013 launch.
The SADC-RTGS system connects central and commercial banks across 15 countries. By allowing direct settlement in kwanza, the change eliminates the need for businesses to convert payments into an intermediary currency like the rand. This shift reduces foreign-exchange costs and accelerates the speed of cross-border transactions for institutions operating within Southern Africa.
South African Reserve Bank Governor Lesetja Kganyago and Banco Nacional de Angola Governor Manuel Tiago Dias announced the update earlier this week. The inclusion of the kwanza represents a structural shift for the regional payment infrastructure as it moves toward a multi-currency model. The SADC secretariat aims to broaden this further by introducing other regional currencies such as the Botswana pula in the future.
The regional payment network currently manages approximately 15 billion dollars in transactions every month. This infrastructure is distinct from the broader Pan-African Payment and Settlement System, focusing specifically on high-value interbank settlements through central-bank money. The move aligns with wider regional goals to lower transaction fees and decrease dependence on non-regional currencies for trade between neighboring countries.
This initiative directly addresses the friction of intra-regional commerce, where businesses previously faced multiple conversion steps and increased banking charges. By streamlining these flows, regional regulators expect to improve financial integration and provide companies with more predictable cash flow management when trading across borders. The transition underscores a deliberate push to strengthen internal African payment systems and increase the use of local currencies in the marketplace.