The article deals with the prospects for regional financial and monetary integration of South African nations. In the region, there is a simultaneous functioning of old-type regional integration groups with dominating South Africa and a new-type union built on a parity basis. In addition, South African nations participate in other integration projects. This participation generates the problem of cross-membership and forces the countries 'to mate' the policy of the union with the adjacent integration groups in the course of regional integration process. However, the main challenge for the financial integration is strong differentiation of States within the region, and their financial systems. Despite a relatively little progress in the implementation of provisions of the basic SADC agreement that defines the areas of financial integration, and difficulties resulting from the States' departure from the agreed general rules, a really successful project was the creation of an integrated system of electronic payments (SIRESS). Transition of South Africa to single currency is not possible yet due to non-compliance of the States' indices with macroeconomic convergence criteria. Furthermore, the model of the future monetary union is not defined yet. In this situation, the best option for the monetary integration is to create a single Central Bank and issue single regional currency within the framework of the SADC. Thus, strict time frames of the integration are refused in favor of smooth convergence of policies of South African nations, with a gradual transfer of rights of national governments on the economic policy implementation at the supra-national level.
Keywords: monetary integration, South Africa, SADC, SACU, CMA
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