Banker S.A. January 2014 | Page 34

REPORT BACK SADC’s new payment plan: a simple step to success Reporting on the ongoing rollout of the Southern African Development Community’s (SADC) revolutionary new payment system that is set to boost economies and trade in the region. T he initial phase of SADC’s move to streamline crossborder transactions between its members has seen settlements involving Lesotho, Swaziland, Namibia and South Africa top R10 billion a week since its inception in July 2013. Cross-border payments are currently overloaded by the administrative processes of currency conversions, foreign exchange regulations and the transferring of funds between countries and 32 BANKER SA Reportback.indd 32 banks. Facilitating transactions through a single currency and central settlement hub is seen as a key strategic initiative towards realising the full economic potential of the $780 billion SADC region. Under existing arrangements, a transaction can take days to be settled. With the new SADC Integrated Regional Electronic Settlement System (Siress), transactions will be settled in seconds. Siress, part of the regional integration project’s Payments Integration Project, also aims to boost socio-economic development through Edition 8 2013/12/19 4:13 PM