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Angola and Namibia are planning to integrate their payment systems to improve the flow of trade between the two countries.
Angola and Namibia are planning to integrate their payment systems to improve the flow of trade between the two countries. The commitment by the neighbouring countries, comes with the two countries’ central banks, the Bank of Namibia (BoN) and Banco Nacional de Angola (BNA), signing a Memorandum of Agreement in Luanda, Angola to formalise the technical collaboration and partnership between the two institutions.
The institutions have agreed to focus on the effective utilisation of the existing regional cross-border payment systems as well as exploring retail payment options such as prepaid cards for the payment of goods and services. Other solutions being explored are trade-related guarantees between the banking institutions of the two countries. Last year the two institutions agreed to collaborate on various fronts, to further their respective price and financial stability mandates as well as execution of strategies to modernise national financial systems.
Payment system integration enabled by digital capabilities assures the efficient movement of goods and services between the two countries. The strategic focus area of the partnership is the elimination of revenue leakages for the respective countries by providing timely and accurate data and empirical evidence in terms of misaligned trade data to the detriment of revenue mobilization. In order to aid in mitigation efforts, the central banks will share data and research on trade and associated financial transactions.
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As part of the agreement, both agreed to focus on the effective utilisation of the existing regional cross-border payment systems as well as exploring retail payment options such as prepaid cards for the payment of goods and services, while other solutions such as trade-related guarantees between banking institutions of the two countries are being explored. The agreement also establishes a bilateral forum for the exchange of technical knowledge and mutual cooperation in cognate central banking functions. The two central banks have set up a technical committee to ensure the execution of the agreement.
