The Southern African Development Community (SADC) has expanded its regional payment system by adding the Angolan kwanza as a new settlement currency, marking the first addition to the system since its launch in 2013.
The development is expected to strengthen cross-border financial transactions and make it easier for businesses and financial institutions across the region to conduct payments in real time.
South African Reserve Bank Governor Lesetja Kganyago said the inclusion of the kwanza would contribute to the development of a more efficient regional payments infrastructure and strengthen the ability of member states to conduct cross-border transactions.
The expansion comes as African countries continue to pursue greater financial integration and reduce dependence on complex and costly payment channels for intra-African trade.
In 2025, trade and interbank transactions between Angola and the other 14 SADC member states were estimated at approximately $3.77 billion. The transactions were conducted across nine currencies, highlighting the scale of financial activity between Angola and the wider Southern African region.
South Africa accounted for the largest share of the transaction value, with approximately $2.99 billion recorded in trade and interbank transactions involving Angola.
The addition of the Angolan kwanza is therefore expected to make regional transactions more efficient by expanding the range of currencies that can be used within the payment system.
The development also aligns with broader efforts to improve payment interoperability across Africa. Continental initiatives such as the Pan-African Payment and Settlement System (PAPSS) and the African Continental Free Trade Area (AfCFTA) are seeking to make cross-border trade easier by improving payment infrastructure and reducing barriers to commercial transactions.
Efficient payment systems are increasingly seen as essential to achieving the goals of deeper African economic integration. Businesses operating across multiple countries often face challenges linked to currency conversion, transaction delays and high payment costs.
By improving the infrastructure that connects financial institutions, regional payment systems can help reduce some of these barriers and support greater intra-African trade.
Policymakers are also hopeful that stronger payment networks will contribute to lower remittance costs. Remittances remain an important source of income for millions of African households, but the cost of sending money across borders in many parts of the continent remains significantly higher than international targets.
The expansion of the SADC payment system could therefore have implications beyond trade and banking, potentially supporting individuals and businesses that rely on faster and more affordable cross-border financial transactions.
The inclusion of the kwanza represents a significant development for Angola and the wider SADC region. It demonstrates the growing focus on building interconnected financial systems that can support regional commerce and economic development.
As African countries continue to pursue greater economic integration, the expansion of regional payment infrastructure is expected to play an increasingly important role in facilitating trade, investment and financial inclusion across the continent.
