October 2010 Open the Way VULINDLELA Payment System Project A project of the Committee of Central Bank Governors SADC Payment System Project Report In February 2010 the SADC Payment System Project The project team is currently assessing the possibility team held a workshop for payment system personnel of integrating existing infrastructure as an interim step from SADC central banks. Subject experts from the in the integration process. This solution will link current Bank for International Settlements, the World Bank, national payment systems to settle cross-border the European Central Bank and from the SADC transactions. A pilot project in selected countries region presented relevant topics and participated in could be a forerunner of the link with the entire region. the discussions. The workshop focused on different aspects of integrating payment systems and the process of harmonising or optimising payment system infrastructure, and enabled delegates to frame a composite picture of the SADC payment system integration project. The majority of the country representatives who had participated in implementing national real-time gross settlement systems are now no longer part of the central banks’ payment systems teams. This workshop gave the newer representatives of the central banks first-time exposure to the initial phases of a regional project. Deputy Governor Daniel Mminele of the South African Reserve Bank addresses the delegates at the SADC Payment System Project Integration Workshop The project team is in the process of forming groups comprising personnel from SADC central banks and from industry to address different aspects of the project. In the course of 2010 the project will establish the scope of the work groups and produce the necessary documentation. The groups will begin work on the project early in 2011. The project team will maintain contact with the international experts to get their input, solicit their advice, and engage them in project initiatives such as workshops and conferences. Delegates at the SADC Payment System Project Integration Workshop 1 SADC Payment System The proposed single-currency settlement system can only be implemented after the establishment Project initiatives of the SADC Central Bank and the issuing of the SADC single currency, scheduled for 2018. 1. Payment system statistical data Design and development of the cross-border settle- The facility to enable SADC member countries to ment system will proceed as planned with the assist- capture payment system statistics online has been ance of the SADC payment system representatives implemented. The system is user-friendly and, and the CCBG sub-groups. Implementation will be together with the detailed user documentation a phased-in process. Countries that are ready for available to the users, makes the process of data implementation in a single-currency environment will entry and annual submission of the payment be accommodated first. The system will be rolled out system statistical data much easier. gradually to the other countries. 2. Project team visits to member 4. SADC settlement system countries The project team has initiated projects that require The project team visited the Central Bank of the participation of payment system personnel Swaziland in October 2009, the Central Bank of from all SADC countries at various stages. These Seychelles at the end of May 2010 and the Bank of projects are in their initial stages. Namibia in July 2010. A workshop with the project team to develop a The team consulted role-players in the national high-level model and to determine if an interim payment systems in each of the three countries, solution is feasible for the SADC region is planned and was satisfied with the efficiency of the for 2010. payments clearing and settlement environment in these countries. 5. Cross-border remittance With the assistance of the International Monetary The SADC payment system project team was Fund, the Central Bank of Seychelles has produced given approval at the CCBG meeting in May a well-documented plan for the development of its 2009 to address, on a bilateral basis, the cost of payment system over the next few years and, at the remittances between countries in the SADC region. time of the visit, was preparing to implement a new core banking system. The project team held meetings with the regulators and the commercial banks in South Africa to The diligent efforts of the Central Bank of Swaziland ascertain the factors that influence the high cost of and the commitment of the role-players in the worker remittance payments from South Africa to national payment system in that country will ensure neighbouring countries. a smooth integration of the system when integrating the region’s national payment systems. After discussion with various regulatory bodies, the project team is awaiting possible relaxation The project team also found role-players in the on certain regulatory requirements for small-value Namibian payments environment well disposed cross-border worker remittances. Commercial towards initiatives to integrate the national payment banks in South Africa have stated that the high cost system into regional frameworks. of worker remittances was a direct result of the regulatory compliance requirements placed on the 3. Interaction with the other regional banks. integration teams Regulators have to establish the relaxations that can When interacting with the Committee of Central be implemented without introducing unnecessary risk Bank Governors (CCBG) sub-groups, the when implementing them. The project team will be project team took the opportunity to present the required to ensure that relaxation in the requirements road map for payment system integration. The will not introduce undue risk in cross-border money team highlighted the fact that alignment with transfers. the schedule for SADC economic convergence is necessary for the payment system project The project team will formulate a solution in the to succeed. South African context and determine if a similar (continued on page 4) 2 SADC country reports Link to Link to country Title of the Country report article article Angola Development of the Angola Payment System Botswana Democratic Republic of Congo Lesotho Madagascar Malawi Mauritius Mozambique Milestones and challenges in implementing the Namibia NamSwitch system Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe Interbank cheque payment system under the multi-currency regime 3 solution cannot be applied in each of the SADC 5. Which SADC countries participate in the Indian countries, especially in the high-cost corridors Ocean Island Games? identified by the World Bank. 6. Who was the first-ever black runner officially to finish the Comrades Marathon? Which country Quiz: SADC in sports is he from? 7. What was the name of the Namibian boxer who 1. What sports event is commonly referred to as became a world lightweight boxing champion? the “Rumble in the Jungle”? In which country 8. Where was the 2010 Africa Cup of Nations did the event take place? In what year? held? Who won the tournament? Who won? 9. Who is hosting the 2010 SADC Southern 2. Which SADC golfer won the Dutch tournament Africa Inter-Municipal Games? three times? Which country was he from? 10. Which South African golfer won the 3. Who was the world’s top cricket batsman Golf British Open Championship held in in 2001? Which country did he represent? In St Andrews, Scotland, in 2010? which city was he born? 4. What sport do Cara, Wayne and Byron Black play? Where are they from? Click here for the answers. Country representatives project team Payment System Project Leader Banco de Moçambique Dave Mitchell Tel: +27 12 313 3442 Henrique E Matsinhe Tel: +258 21 428 379 [email protected] Fax: +27 12 313 4152 [email protected] Fax: +258 21 326 213 Banco Nacional de Angola Bank of Namibia Judith Fatima Santos Lima Tel: +244 237 0563 Brian Gei-Khoibeb Tel: +264 61 283 5205 [email protected] Fax: +244 237 0563 [email protected] Fax: +264 61 283 5228 Bank of Botswana South African Reserve Bank Oakantse Modisa Tel: +267 360 6026 Tim Masela Tel: +27 12 313 3424 [email protected] Fax: +267 391 2101 [email protected] Fax: +27 12 313 4152 Banque Centrale du Congo Central Bank of Seychelles Kapinga Tshimanga Ngele Tel: +243 81 403 2311 Christophe Edmund Tel: +9248 225 200 [email protected] Fax: +243 81 301 0898 [email protected] Fax: +9248 224 958 Central Bank of Lesotho Central Bank of Swaziland Thenjiwe Namane Tel: +2662 231 4281 Mandla Dlamini Tel: +268 408 2132 [email protected] Fax: +2662 231 0557 [email protected] Fax: +268 408 2246 Banque Centrale de Madagascar Bank of Tanzania Serge Ramanitrera Mamilalaina Tel: +261 20 222 1751 Lucy Kinunda Tel: +255 22 223 5432 [email protected] Fax: +261 20 223 4532 [email protected] Fax: +255 22 223 4196 Reserve Bank of Malawi Bank of Zambia Fraser Mdwazika Tel: +265 177 0565 Edna Mudenda Tel: +260 211 237040 [email protected] Fax: +265 177 0321 [email protected] Fax: +260 211 223637 Bank of Mauritius Reserve Bank of Zimbabwe Dhanesswurnath Thakoor Tel: +230 202 3935 Francis Matseketsa Tel: +263 470 3000 [email protected] Fax: +230 211 7103 [email protected] Fax: +263 470 3808 Any information regarding the SADC Payment System Project may be obtained from: South African Reserve Bank National Payment System Department Website administrator Gops Pillay Tel: +27 12 313 4437 Eretha du Toit Tel: +27 12 313 4107 [email protected] Fax: +27 12 313 4288 [email protected] Fax: +27 12 313 4288 Payment System Analyst Design, layout and language editing Anrich Daseman Tel: +27 12 313 4452 Publishing Section [email protected] Fax: +27 12 313 4152 South African Reserve Bank 4.