It is estimated that from South Africa to SADC about 50% of remittances are sent through informal channels. The ADLAs are competing and gaining traction. Payment is still mainly cash via large retail networks, but reduced KYC requirements has increased access. Prices have been coming down as competition intensifies with new fintechs entering the market, including mobile money cross-border due soon.

The regulator is strict and there are strong exchange controls which are a barrier to the use of formal channels. SARB is proactive at improving the market through donors and the ADLA Forum.

There are interesting developments at the regional level. The SADC RTGS is operational, and the Transactions Cleared on an Instant Basis (TCIB) (instant payments regionally) is under development.

This research is part of a series of country diagnostics in selected African countries, in implementation of the Platform for Remittances, Investments and Migrants’ Entrepreneurship in Africa (PRIME Africa) initiative. The diagnostic report has been developed and presented to key stakeholders in the country. It details all aspects of the remittance market, including key players, stakeholders, and recommendations.