Zimbabwe has called on the Southern African Development Community (SADC) Central Bank Governors to swiftly address and remove barriers impeding regional trade and financial transactions, such as high costs and delays.
The role of SADC Central Bank Governors is crucial in fostering a supportive macroeconomic and financial environment essential for advancing investment and development within the region. This involves backing investment financing and leading in financial technology and innovations, including digital payment systems.
In light of these responsibilities, Zimbabwe has appealed to the SADC Committee of Central Bank Governors (CCBG) to enhance regional financial inclusion, facilitate trade, and improve remittance flows. This appeal was made during a welcome dinner held in Victoria Falls on Thursday.
Vice President Dr. General (Retired) Constantino Chiwenga praised the efforts of the CCBG, highlighting their significant role in deepening regional integration and cooperation. He emphasized the importance of diaspora remittances in bolstering foreign currency inflows and called for measures to remove obstacles to attracting these financial flows, urging Governors to ensure smooth transmission channels.
CCBG chairperson Mr. Lesetja Kganyago acknowledged Zimbabwe’s call, noting the committee’s commitment to tackling financial impediments. He outlined the committee’s objectives to enhance trade by improving the interconnectedness and interoperability of payment systems across the continent. Kganyago emphasized the need for cost-effective, efficient cross-border payments and hinted at integrating these advancements into the G-20 agenda to expedite cross-border transactions.
He also highlighted SADC’s progress in financial integration through the Real Time Gross Settlement system and expressed optimism about extending these improvements to retail transactions, which would significantly advance financial inclusion on a cross-border level.
The recent positive developments in Zimbabwe’s currency and its adoption of a floating exchange rate management framework align with SADC’s goal of achieving monetary integration. This progress is seen as a step towards establishing a SADC Monetary Union in the coming years.
