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Mr Gabaraane

Business Editor
THE Reserve Bank of Zimbabwe has given local banks the go ahead to individually apply for permission to join the Sadc Integrated Regional Electronic Settlement System after the banks successfully tested the system. In a letter to the Bankers Association of Zimbabwe seen by The Herald Business, the RBZ said it has no objection in principle to local banks participating on the Rand-based SIRESS platform when it is made available to non-Common Monetary Area members.

The CMA is made up of South Africa, Namibia, Lesotho and Swaziland.
“However the banks have to individually apply to the Central Bank for permission to join SIRESS, a pre-requisite for admission into the system,” reads the letter dated October 4, 2013.”

The system is expected to ease cross border trade between regional countries. SIRESS is a Southern African Development Corporation Payment

System project meant to make the payment element of intra-regional trade much easier and more efficient. The SIRESS project was launched on July 21, 2013.

Speaking after the launch then Chairman of the Sadc Banking Association Mr Leina Gabaraane said SIRESS was the first step towards a
common electronic payment system for all 15 countries in the Southern Africa Development Community.

He said the project aimed to boost socio-economic development through harmonisation in areas of common interest such as trade tariffs
and border controls, and integration in areas such as telecommunications and financial infrastructure.

Some Zimbabwean banks have successfully tested the system and have reportedly shown zeal for
such innovative products being introduced in the region.

From the time it went live in the CMA countries, SIRESS is now processing transactions worth R10 billion or US$1 billion a day.
SIRESS, which is regulated by the Sadc committee of central bank governors, will soon be adopted by four countries including Zimbabwe.

Analysts have said Sadc countries adopting SIRESS will be able to achieve cost benefits through SA’s large, world-class electronic payments system.

It’s argued that with the exception of SA, electronic payment systems in Sadc countries are very small-scale.
Small scale in that this results in two key obstacles to cross-border trade and the movement of people: inefficiencies and high transaction costs.