Namibia and Angola have agreed to collaborate on digitally enabled payment methods, including digital currencies and crypto assets.
This was after the Bank of Namibia (BoN) and Banco Nacional de Angola (BNA) decided to jointly improve trade-friendly exchange control regimes and protect the stability and integrity of the two countries financial systems.
“In this context, the two central banks agreed to further enhance trade facilitation by using current and regional cross-border payment system agreements to guarantee quicker, digitally enabled, and more cost-effective cross-border remittances,” said Kazembire Zemburuka, the BoN Director: Strategic Communications and International Relations.
He was speaking following the visit of Governor of Banco National de Angola, Jose de Lima Massano
Zemburuka added that to facilitate payments in support of trade facilitation between the two countries, the central banks agreed to explore innovative and instant payment solutions, and other financial services under Fintech Regulatory Framework approaches.
“Furthermore, the two central banks reaffirmed collaboration on emerging topics such as digital currencies, particularly central bank digital currencies and crypto assets, to better understand these developments’ impact on monetary and financial stability. The two institutions also agreed to share relevant research and forge a common understanding of these developments.”
Zemburuka said the issue of onboarding of the two countries’ respective domestic currencies (the Namibian Dollar and Kwanza) on the SADC Real Time Gross Settlement (RTGS) platform to facilitate payment of settlement for goods and services had also been discussed.
“This also entails leveraging participation in the SADC-RTGS platform, thus enhancing trade among our respective nations. Moreover, both countries agreed that they would ensure optimal participation in the Transactions Cleared on an Immediate Basis (TCIB) Scheme, introduced through the SADC payment systems structures, for faster, affordable cross-border remittances,” he said.
Regarding exchange control, BoN committed to the gradual and conditioned sequenced removal of capital account restrictions, noting the measures were historically punitive and detrimental to trade.
“The meeting noted that the BNA has entirely removed its capital account restrictions, while BoN is committed to the gradual and conditioned sequenced removal of capital account restrictions. Both countries support the objectives set under the SADC Finance & Investment Protocol Annexure 4 to cooperate and coordinate in Exchange Control matters,” said the BoN Spokesperson.
Zemburuka said the central banks pledged to promote collaboration between financial intelligence units of the two ape banks.
“The central banks shall further promote collaboration between financial intelligence units to uphold financial integrity, and exchange information on illicit financial flows and any violation of applicable laws. The two institutions reaffirmed their commitment to working together on financial system regulation and supervision by exchanging best practices and benchmarking,” he said.
