Martin Endjala
Namibia and Angola on Wednesday announced progress in the issuance and use of innovative payment mechanisms between the two countries to respond to the need for smoother trade and transactions.
This is an outcome of a renewed push by the two central banks to enhance the movement of goods and services between the two countries which was inspired by excellent government-to-government relations.
The Governor of the Bank of Namibia (BoN), Johannes !Gawaxab, said the payment systems include a variety of platforms and services that enable businesses, individuals, government and other economic agents to conduct daily financial transactions without the need to use cash.
To this end, the central banks explored various payment mechanisms to enhance trade between the two countries.
These instruments included credit and visa cards and electronic fund transfers (EFT), which are crucial in the commercial world as they enable businesses and consumers to transfer funds to one another.
Non-resident accounts linked to a card product which were only issued on a limited basis in Namibia are now available at most commercial banks for Angolan citizens.
These are also available to Namibian citizens travelling to Angola. In addition, the popular Multicaixa cards used in Angola will soon be VISA/MasterCard branded, which opens another avenue for Angolan citizens travelling to Namibia to use them conveniently.
“The exchange of goods and services, we find not only economic growth but the seeds of prosperity and unity for two people who share a common border and a common history.
Our cooperation should not only be transactional but also transformational and as a beacon of hope illuminating the path for an interconnected future for Namibia and Angolan current and future generations,” said the Governor.
Furthermore, Angola has made steady progress in onboarding its Kwanza currency on the cross-border Southern African Development Community (SADC) – (RTGS), the Regional Real-Time Gross Settlement System.
Once completed, cross-border payments with Angola will be made faster without the reliance on third-party banks outside the SADC region. It will further open another avenue for high-value payments to be effected between the two countries.
Similarly, Banco Nacional de Angola Manuel Dias, reaffirmed that the journey of a thousand miles starts with a single step.
“With the measures taken today by the Banco Nacional de Angola and the Bank of Namibia, our two countries are one step closer to realising regional integration in line with the objectives set out by the African Unions’ Agenda 2063. Furthermore, these steps will significantly strengthen the longstanding bilateral relationship between Angola and Namibia,” said Dias.
Moreover, the two central banks announced a raft of research activities to be undertaken this year by technical teams of the two monetary authorities on trade-related topics to inform policymakers and other stakeholders on untapped trade opportunities between the two countries and financial inclusion, among others.
Additionally, the two central banks are said to continue advancing modern and digitally driven payment methods between their respective countries while improving exchange control systems that promote trade and safeguard the stability and soundness of their financial systems.
The central banks will persist in raising awareness among their stakeholders regarding payment initiatives and continue exploring additional measures to augment collaboration and economic advancement for both nations further.
