The Bank of Namibia (BoN) and Banco Nacional de Angola (BNA) have prioritized trade facilitation through payment system integration enabled by digital capabilities as a means of realizing the efficient movement of goods and services between the two countries.
The two banks strengthened their bilateral relations through the signing of a memorandum of agreement.
In a media release, the Bank of Namibia's Spokesperson Kazembire Zemburuka announced that the two institutions have agreed to focus on the effective utilization of 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.
"Another 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. The collaboration will involve the sharing of data and research into trade and related financial transactions for mitigation efforts."
Zemburuka further says that sharing of knowledge on financial inclusion initiatives will be prioritized where people from both countries have access to quality, affordable, and a broad spectrum of financial services.
Both countries, he says, acknowledged that the defunct currency conversion agreement, which previously allowed the exchange of currencies at the border towns, was beneficial.
The two central banks have ruled out the activation of this conversion agreement at present as more convenient and cost-effective methods to facilitate trade is being prioritized.
"A technical committee has been formed with institutional arrangements in place to ensure the agreement is fully executed. The agreement also establishes a bilateral forum for the exchange of technical knowledge and mutual cooperation in cognate central banking functions, which will greatly benefit the two central banks in carrying out their respective mandates."
The bank, says Zemburuka, is making concerted efforts to improve the smooth integration of payment infrastructure for the benefit of businesspeople, traders, and citizens.
The transformation will be an easy task, but given the expectations of the two governments and the demands of the business community, the banks promise to deliver on all fronts.