INTRODUCTION

Africa is home to a number of regional economic blocks and in many cases some African countries have found themselves in two and sometimes three of these economic zones. A number of initiatives have been attempted, some with success and some with less success, to implement regional payment schemes in order to support the general economic aspirations of the regions.

In 2013 The World Bank assembled a panel of experts who produced guidelines for the successful regional integration of financial infrastructures which were published in January 2014. Readers of this document are urged to study the important document produced by the World Bank in conjunction with this document.

Africa is now at a juncture where consideration could be given to African regional blocks now working closer and sharing ideas on how this closer collaboration can lead to improved regional and intra-regional payment processing initiatives that can support greater financial inclusion, something the continent urgently needs.

  • Section One
    • This section covers a number of strategic aspects concerning African regional payment developments as well as the manner in which the SADC region aligned with the guidelines set out by the World Bank in their document entitled “Guidelines for the successful regional integration of financial infrastructures”.
  • Section Two
    • This section sets out a practical framework for development of a regional payment scheme.

 

PURPOSE OF THIS DOCUMENT

This document aims to provide readers with the approach adopted in the SADC region regarding regional payment schemes with practical examples on how the World Bank guidelines were considered. This document also suggests a framework for development of a regional payment scheme and is available to any regional block for consideration and consumption with regard to any of their own initiatives that they may feel could benefit from its examination.

STRUCTURE OF THIS DOCUMENT

This document is structured to show and highlight to the reader the following;

  • The African regional landscape
  • African regional payments initiatives
  • Alignment with the World bank guidelines for the successful regional integration of financial infrastructures
  • Components of a regional payment scheme in SADC