By Mark Smulian | 19 August 2013

South Africa has given support to the idea of a single currency for southern Africa.

But its government still sees impediments to realising the Southern African Development Community’s (SADC) plan to launch a single currency for the region.

Trade and industry minister Rob Davies said it was highly unlikely that the proposed 2018 launch date could be met.

‘There is still a bit of unfinished business in as far as the consolidation of the free trade agreement, there are a few challenges and I think we are slowly but surely beginning to address those challenges,’ Davies said at an SADC summit in Malawi.

He dismissed fears that a single currency would see the more stable economies swallow those of their neighbours.

Davies said: ‘Those claims that bigger economies will suddenly swallow small economies are unfounded... that is why we are proceeding with great caution.’

SADC has proposed that the single currency be introduced initially into those that use the rand ¬– South Africa, Lesotho, Namibia and Swaziland – and if successful be extended to other SADC member states.

Summit chair, Malawi’s president Joyce Banda reiterated the importance of facilitating the free movement of goods and people within SADC countries for the benefit of the region’s economy.

SADC’s other members are: Angola; Botswana; DR Congo; Madagascar; Mauritius; Mozambique; Seychelles; Tanzania; Zambia; and Zimbabwe.