Page 59 - 41st Summit Brochure

Real Time Payment Systems (ESAAMLG) Task Force of Senior Officials
As of July 2021, a total of 84 participating banks, adopted two AML/CFT Mutual Evaluation
from the 15 SADC Member States (except Reports on Tanzania and Mozambique, and
Comoros), were electronically linked to effect cross- further discussed and adopted 12 Post Evaluation
border payments and settlements in real time. From Progress/Follow up Reports for Botswana,
July 2013 to July 2021, the total number of Ethiopia, Kenya, Lesotho, Madagascar, Malawi,
transactions settled was 2,201,034 representing the Mauritius, Rwanda, Seychelles, Uganda, Zambia
value of ZAR 8.56 Trillion (equivalent to US$ 588.19 and Zimbabwe, and the High Level Mission
billion). Progress Reports of Lesotho and Rwanda. The
Following the successful launch of the SADC- Task Force also discussed the three follow-up
RTGS in July 2013, the region has embarked on the reports with re-ratings of Botswana, Ethiopia and
implementation of several key initiatives pertaining Zimbabwe.
to the regional payment, clearing and settlement
systems, including the Mobile-initiated Low Value Financial Inclusion and Remittances
Credit Transfers Cleared on an Immediate Basis In the area of financial inclusion, 68 percent of
(TCIB). This retail payments initiative aims at adults in the region are financially included
creating an efficient, safe, harmonised and against the target of 75 percent by 2021. In terms
integrated payments system in the region to further of gender split, 67 percent of female adults are
reduce cross-border remittance costs across the financially included while the rate is 70 percent
SADC region as well as to enhance financial for male. As per the decision of the Ministers of
inclusion. The soft launch and testing of TCIB were Finance and Investment at their meeting in
successfully completed in 2019. Namibia in July 2019, the SADC Financial
As a result, the SADC Regional Clearing and Inclusion Subcommittee was operationalised.
Settlement System Operator (RCSO) SADC continues to implement a number of
(BankservAfrica Limited) was onboarded in 2020 initiatives which will further reduce the average
to manage the SADC TCIB payment scheme. A cost of cross-border remittances in the SADC
number of non-banks are joining the scheme, as region to below the G20 target of five percent. For
the SADC Payment System Subcommittee is example, given the success of the Shoprite
engaging with participants on the SADC RTGS to remittance product to Lesotho, a similar 57
sponsor these non-banks to settle obligations approach was launched in Eswatini in January
arising from the TCIB. In addition, boarding of 2020. This new bank-retailer product aims to
regional currencies on the SADC RTGS multi- serve low-value remitters in the South Africa-
currency platform which went live in October Eswatini corridor and costs less than 3 percent
2018, is ongoing. on a price point of US$55. New products have
also been introduced between South Africa and
Capital and Financial Markets Malawi, Zambia, DRC and Zimbabwe. In
In 2019, a tool was developed for monitoring the addition, due to travel restrictions and closure of
implementation of the centralization of the bond borders caused by the COVID-19 pandemic,
markets in the SADC region, and progress on the significant informal remittances were diverted to
centralization of secondary bond trading on the formal channels resulting in an increase of
SADC Exchanges is being monitored through a 31.4 percent in formal cross-border remittances.
scorecard matrix. The total number of transactions (South Africa
Work is underway to assess and diagnose the outbound) was estimated at 851,441 in June 2020
SADC Capital Market architecture. The assessment against 648,110 in June 2019.
will define a baseline for harmonization of capital Following further guidance from the
markets in the region and assess the trading rules Ministers of Finance and Investment at their
and type of products available in the region. This meeting in July 2019, three Members States
will assist in the development of products to enable (Eswatini, Lesotho and Malawi) have been
SMEs to participate in the capital markets. assisted with regard to the domestication of the
SADC is in the process of operationalising SADC Mobile Money Guidelines. Malawi has
the SADC Stock Exchanges Interconnectivity Hub started paying interest on mobile money wallets.
which will provide for a wider range of participants’
access to the trading screens of the member Development Finance
exchanges, through a Smart Order Router (SOR) With regard to project preparation, the SADC
system that will allow brokers to channel orders to Project Preparation Development Facility (SADC-
other Stock Exchanges, where they would still be PPDF) continues to support Member States to
traded and settled locally. strengthen regional infrastructure connectivity by
The 41st Meeting of the Eastern and providing grants for project preparation and
Southern Africa Anti-Money Laundering Group development for cross-border regional