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Protocol on Finance and Investment
The Protocol on Finance and Investment, which was signed in August 2006
and came into force in April 2010, is the guiding document to advance finan-
cial markets and integration in SADC. One of its main aims is to promote greater
regional cooperation to enhance the attractiveness of the region as an investment
destination. The Protocol seeks to facilitate the development and strengthening of fi-
nancial and capital markets, as well as the establishment of a SADC Project Preparation
and Development Fund to promote sustainable development in the region.

Regional Payment System
There has been notable progress in the area of payment systems, and all Member States
except Comoros are implementing the Real Time Gross Settlement System (RTGS) which
facilitates quicker transactions and efficiency in payments.
The SADC-RTGS has modernised and harmonised payments and clearing systems
both domestically and regionally, resulting in reduced transaction costs as it removes
the need for correspondent banks. Where transactions previously took two to three days
to clear, with SADC-RTGS they are now settled in real-time, subject to availability of
funding at the paying bank, and the fees paid to non-SADC clearing banks are
saved.
A total of 85 banks (central banks and commercial banks) are par-
ticipating in the system. The SADC-RTGS has performed impressively
since July 2013 when the system went live, with more than 1.8 million
transactions settled by the end of June 2020, representing ZAR 7.17 107
trillion. However, the Committee of Central Bank Governors
(CCBG) is still engaging the SADC Bankers Association to ensure
that savings arising from removal of correspondent banks in the sys-
tem are passed on to consumers.
The SADC-RTGS multi-currency platform went live in Oc-
tober 2018. Particular attention is now focused on developing clearing
and settlement models with specific reference to the SADC currencies
that are not yet included in the SADC-RTGS, participation of non-
banks as settlement members in the SADC-RTGS system for purposes
of settling Transactions Cleared on an Immediate Basis (TCIB) obligations
and participation criteria and governance arrangement for TCIB scheme.

Development Finance Resource Centre
The Development Finance Resource Centre (DFRC) is fully functioning and effectively
supporting Development Finance Institutions (DFI) across the SADC region. Since 2005,
through the support of the DFRC, membership of the DFI network has expanded from
18 to 41, covering a wide range of sectors, facilitating an increase in development spending
in the SADC region and in the skill of resources deployed to the region.

SADC Project Preparation Facility
Another important milestone is the establishment of the SADC Project Preparation and
Development Facility (PPDF). This facility became a reality in August 2018 following the
signing of a Memorandum of Agreement between the SADC Secretariat and the Devel-
opment Bank of Southern Africa (DBSA). The PPDF supports SADC Member States
with funds to undertake feasibility, technical and engineering designs, environmental and
social impact assessment studies, as well as preparation of tender documents and trans-
action advisory services to make projects bankable for financing and implementation. Cur-
rent funding for the PPDF has been secured from the European Union and KfW. The
DBSA is hosting the PPDF on behalf of the SADC Secretariat.