Sadc RTGS system charms Zim banks
LOCAL commercial banks processed R5,55 billion (US$300,4 million) worth of transactions on the Southern African Development Community-real Time Gross Settlement (SADC-RTGS) system in 2023, an increase of 29% compared to the previous year.
This was revealed by Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu in his 2024 Monetary Policy Statement.
The SADC-RTGS system is a regional electronic payment system developed by Sadc member states to settle cross-border transactions faster without having to rely on intermediary banks from outside the region.
The system was implemented in July 2013 as a pilot project in Eswatini, Lesotho, Namibia, and South Africa.
“The SADC-RTGS system celebrated 10 years of processing cross-border payments in 2023.
Since inception, over 3,2 million transactions valued at R12,63 trillion (US$684 billion) have been settled on the platform,” the policy document reads in part.
“In 2023, Zimbabwean commercial banks processed R5,55 billion worth of transactions on the SADC-RTGS system, an increase of 29% from 2022, while the volume declined by 22% to 4 103 transactions.”
There are 90 participants in the SadcRTGS system, composed of central banks and commercial banks, drawn from 15 countries.
Subsequently, the system was rolledout to the rest of member states after the successful pilot. The main objective of the SADC-RTGS is to support regional integration and development by enhancing financial integration.
The system is one of the success stories under the area of finance and investment in the region.
The participating central banks designated the South African Reserve Bank to oversee the system's operation.
The creation of the SADC-RTGS system is compliant with the Sadc Protocol on Finance and Investment, which seeks to strengthen member state cooperation on payment, clearing, and settlement systems in order to promote trade integration and enhance the regional investment climate.
The committee of central bank governors (CCBG) in Sadc and the Sadc banking association were founded in 1995 and 1998, respectively, to promote the implementation of the region’s protocol on finance and investment.
The CCBG, which is made up of all central bank governors in the region, is responsible for promoting the development of financial institutions and markets through co-operation and consensus on financial, investment, and foreign exchange policies.
The Sadc banking association oversees the cross-border banking operations of its members.
The CCBG reports to the Sadc committee of ministers for finance and investment, which in turn reports to the Sadc council of ministers.
The council of ministers reports to the Sadc heads of state and government.
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