South African Reserve Bank publishes side-event findings on improving cross-border payments in sub-Saharan Africa

The South African Reserve Bank published a write-up of a side event on enhancing cross-border payments in sub-Saharan Africa, arguing that cross-border transfers remain fragmented, costly and slow despite advances in domestic instant payments. Governor Lesetja Kganyago linked the persistence of inefficiencies primarily to weak interoperability and regulatory misalignment, and cited Financial Stability Board key performance indicator data showing the region remains furthest from the G20 Roadmap targets, with remittance costs in some corridors exceeding 10% of the amount sent. The discussions highlighted infrastructure and policy priorities, including the rapid expansion of fast payment systems, with 31 now live across Africa, alongside limited interoperability and adoption of the ISO 20022 messaging standard. Regional arrangements such as the Southern African Development Community Real-Time Gross Settlement system and the Transactions Cleared on an Immediate Basis scheme were referenced, with TCIB enabling low-value ISO 20022-based payments across six corridors and planning to add settlement currencies. Speakers also pointed to high cash reliance, market concentration and regulatory barriers, and called for corridor-specific diagnostics, technical assistance, harmonised frameworks, and expanded access for non-banks, including risk-based approaches to anti-money laundering and combating the financing of terrorism and simplified due diligence for low-risk transactions. Fabio Panetta, Governor of Banca d’Italia and Chair of the Committee on Payments and Market Infrastructures, highlighted CPMI work on payment pre-validation, payee confirmation and improved messaging standards to increase transparency and reduce fraud, alongside greater use of transaction-level data and consumer education to build trust.