State of Regional Financial Integration in the Southern African Development Community - Presentation to the Steering Committee

State of Regional Financial Integration in the Southern African Development Community Presentation to the Steering Committee 23 March 2016 Making financial markets work for the poor Table of Contents • Introduction • Methodology • The process of RFI • Findings • Conclusions and recommendations Introduction • Genesis and Imani were commissioned to undertake a study assessing the state of regional f. [...] volume Investment flows into and within SADC increase in volume Figure 4: Transfers of a capital nature, total inflows and outflows between South Africa and the rest of SADC (Rand millions, 2010-2015) Total inflows from rest of SADC into South Africa Total outflows from South Africa to the rest of SADC 6 838 7 000 6 000 5 000 3 820 4 000 3 212 3 000 2 000 1 000 0 2010 2011 2012 2013 2014 2015 (yea. [...] an decreased •The result on the savings account should finance entry-level be interpreted with caution since the transactional •Average differential between the cost of composition of local banks is different to product) a savings account at a local bank and the the last study cost of a savings account at a foreign bank has increased •The information on mobile money is inconclusive •Variation in t. [...] throughout SADC The cross border •There exists a ‘location bias’ in the •The lending bank’s preference to either supply of trade provision of trade finance, with a be in the same country as the borrowing finance in SADC preference for the lending bank and the trader or to liaise with the trader’s borrowing trader to be in the same domestic bank poses barriers to RFI. [...] investment in capitalisation as a % of other capital GDP) markets 2 The proportion of intra- SADC institutional investors and regulators should be urged to collect data SADC institutional similar to that reported by the SARB investment increases 3 Prime lending rates Prime lending rates should be available from central and reserve banks in across SADC member the region, and could be added to the i.