Malawi testing regional e-payment systems

Malawi is testing two regional electronic payment systems—under the Common Market for Eastern and Southern Africa (Comesa) and the Southern Africa Development Community (Sadc)—which are expected to cut costs.

The Reserve Bank of Malawi (RBM) spokesperson Mbane Ngwira, responding to a questionnaire on Sunday said the country will soon fully go live on the two systems which will greatly facilitate international trade.

The Sadc Integrated Regional Electronic Settlement System (Siress) is a project being developed to settle transactions including real time credit transfers, interbank loans and foreign exchange deals. It will also be used for Sadc direct debits, Sadc card and ATMs, and Sadc securities.

And Comesa’s Regional Electronic Payment Settlement System (Repss) will support intra-regional trade through gross real time settlement hence economic growth within the region according to RBM 2012 Payments Systems Annual Report.

The RBM’s Payment Systems 2012 Annual Report notes that under Siress legal agreements on the project were scheduled to end end-February 2013, go on live preparation by July 19 and go live by July 22.

The RBM’s report notes that in Malawi, stakeholders are currently reviewing participants’ agreements with the Comesa clearing, final test runs are earmarked for June 2013 and the country is expected to live in Repss by end August 2013.

But Ngwira said currently RBM is in the testing phase of the implementation of both Siress and Repss.

“There have not been any major problems in the implementation of the two regional payment systems.

“After the successful testing phase, we shall engage the business community on a sensitisation campaign before the system would be ready for launching. RBM has made progress and has already opened two accounts in dollars and euros. What is remaining now is to connect to commercial banks,” he said.

The RBM’s report further notes that Repss clearing house is located in Zimbabwe but stakeholders appointed the Central Bank of Mauritius as the settlement agent but local banks within participating member countries access the system through their domestic central banks.

The project is expected to roll out gradually with the first phase planned for July 2013.