Luanda - The Mozambican ambassador to Angola, Osvalda Joana, suggested Friday, in Luanda Province, the need for major studies and agreements between the member countries of the Southern African Development Community (SADC) with a view to implementing a single currency in the region.
The diplomat, who was speaking within the scope of the 43rd Summit of Heads of State and Government of SADC, to be held from 7 to 17 August, in Luanda, said that it is necessary to assess the advantages, disadvantages and the most competent procedures for the implementation of a single currency in the community of countries more in the southern part of Africa.
“We cannot rush in and implement before assessing the advantages, disadvantages and the most capable procedures and seeing which currency will be established and when it will come into force”, she emphasized.
On the implementation of a single currency in the region, SADC has already foreseen goals, results and impact and challenges.
According to the Implementation Framework for the Indicative Strategic Plan for Regional Development, 2018 was the deadline set for achieving this goal related to the implementation of the single currency.
SADC data indicate that the final step in the process of deepening regional economic integration in the region is the implementation of a single currency, which will establish the region as an Economic Union.
As regards the results and impact of the implementation of a single currency, it should be noted that, although the expected date for the launch of a Single Currency is several years away to be achieved, the SADC Payment Systems Steering Committee has developed a draft for the establishment of a system to facilitate cross-border settlement and payment.
This system, indicates SADC, would allow the settlement of payment operations in a local exchange and would be based on a single currency.
The aforementioned model system is initially being tested in the current countries of the Common Currency Zone, which use the South African Rand currency, namely South Africa, Lesotho, Namibia and Swaziland and, if successful, will be ready to be implemented in the remaining SADC Member States as the region moves forward in its integration process.
Regarding today's biggest challenges, to achieve this goal, and any of the most advanced integration milestones in economic terms, is a lack of clarity around the issue of countries that are members of more than one customs union.
However, only when this issue is sorted out, SADC will be able to move forward with its regional economic integration agenda.
Data indicates that, as of 2019, the community had an estimated population of 366 million and within SADC merchandise trade with an estimated total of 58.745 million in 2020.
SADC's main objectives are to achieve development, peace and security, economic growth, reduce poverty, raise the standard and quality of life for children in Southern Africa, and support disadvantaged social associations through regional integration, based on democratic principles and equitable and sustainable development.
The Southern African Development Community (SADC) was created in 1992 to encourage trade relations between its 16 member countries and has its headquarters in Gaborone, Botswana.
The organization comprises Botswana, South Africa, Angola, Botswana, Comoros, Democratic Republic of Congo (DRC), Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, Eswatini, Tanzania, Zambia and Zimbabwe.
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