Strategy implementation challenges facing Southern African Development Community (SADC) Payment System project: case study

This study discusses the case of modernising the Southern AfricanDevelopment Community (SADC) regional payments system facilitated by theSADC Payment System Project. The long-term objective is to haveharmonised cross-border and inter-bank settlement systems to facilitate theeconomic activity such as supporting the flow of trade within the SADC region.The SADC Payment System Project purports to have adopted a strategicmanagement process to achieve its mandate. The modernisation process is inline with the Regional Indicative Strategic Development Plan (RISDP). Theaim of the RISDP is to provide strategic direction with respect to variousSADC programmes and activities and to align the strategic objectives andpriorities of SADC with the policies and strategies for achieving its long-termgoals.The concept of payment, clearing and settlement system is explained toprovide the context within which the national payment system fits in theeconomic system and its role towards economic development.The first objective of the study is to discuss the strategic managementprocess. The objective of the discussion is to reflect how the strategicmanagement theoretical constructs were translated into practice.The second objective of the study is to explore the environmental and countryinternal factors that are likely to impact on and delay the fully harmonisedregional cross-border and inter-bank settlement systems.Although not exhaustive, the identified factors include;- The structural arrangements of country- specific teams that support themodernisation initiatives,- The availability of skills and capacity to harness the implementedsystems within each member country in the SADC region.iii- The influence of foreign fund donors, as a result of a possibleduplication of efforts,- The repair state of power supply and communication networks,- The supporting legal and regulatory regimes,- The forms of economic systems,- The influence and the extent of trade flows with the SADC region, and- The resilience banking networks in the facilitation of financialinformation flows within each member country and externally(internationally).The target population of central bank officials who also take an active role inthe modernisation of SADC regional payments systems were requested toprovide feedback on the prepared questionnaire to address the above factors.The responses provided are summarised in Chapter 5. It was clear from theresponses that the identified factors appeared to pose little challenge forrespective member countries. However, additional comments by respondentsindicated that there is still a lot of groundwork to be covered. There was anevidence of the need for on-going training in payment systems and to improvecommunication networks and power supply within each member country,especially on the remote country areas/rural areas. Some members alsohinted a warning on developing systems, which would have a potential tobecome white elephants if other sectors are not developed in parallel to theregional payment systems.