Southern African Development Community (SADC): Central Bank Challenges

1185795_617830954904254_1723649560_nAt the recent International SAP Conference for Financial Services, Paulo Maculuve delivered an engaging talk about the work being done at the Southern African Development Community (SADC) Central Banks. Paul is from the Bank of Mozambique and is also ICT Director and Chairperson of the SADC Central Banks Information Technology Forum. International SAP Conference for Financial Services

See Paul’s video interview at the International SAP Conference for Financial Services

About SADC

Stretching from the Democratic Republic of Congo and the United Republic of Tanzania to South Africa, the Southern African Development Community (SADC) established a free trade area in 2008 and a custom union in 2010. Its vision is to establish a common market in 2015, a monetary union in 2016, and a central bank in 2018.

Mission of the SADC IT Forum

  • Enhance the IT capacity to manage and operate the ICT function in the SADC central banks
  • Define and work towards common application architectures which supports the core central bank functions within SADC
  • Define and work towards common architectures for IT infrastructure in the central banks, where possible
  • Define and work towards a regional communications backbone to enable domestic and regional payment systems
  • Create an awareness of emerging technologies and new business practices among central banks

While there have been significant efforts to get to this point, political and other issues have impeded progress although work groups have been set up and the SADC IT Council is in place. The IT Council is planning on joint platform solutions, with some already in place such as Bank Supervision Application (BSA), Time Series Analysis (TSA), Statistical Databases, among other business applications. Current projects include

  • ICT licensing strategy
  • Regional communications infrastructure
  • IT governance
  • ICT architecture and common applications
  • Business continuity management
  • IT security and innovation
  • ERP strategy for Central Banks

Central Bank Challenges

SADC has a large proportion of those individuals who are “financially excluded”, ranging from a high of 78% in Mozambique to 26% in the Republic of South Africa. To increase financial inclusion, Central Banks are being encouraged to leverage the proliferation of mobile phones and corresponding mobile payments and banking, and to focus their efforts to know their customers better, increase financial literacy, reduce the number of unbanked people, strengthen bank supervision, and expand banking services to rural areas (using a branchless banking model).

Kirby Leong, Social Business Strategist at SAP

Comments

    Kingstone Mutsonziwa says:

    For more information on Financial Services and issues per country, please refer to our website for our FinScope surveys (http://www.finmark.org.za/focus-area/finscope/) OR

    http://www.finscope.co.za/new/pages/default.aspx

    Hope this will help to give more information on levels of financial inclusion per country where FinScope surveys have been done.

    Regards

    Kingstone

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