Harry Scherzer | CEO | Future Forex | mail me |
South Africa takes on the presidency of the Group of 20 (G20) in 2025 with six headline priorities. These include debt sustainability for low-income countries, mobilising finance for a just energy transition, food security, disaster resilience and digital infrastructure. Among these, payment reform is the one that businesses in the country will feel most directly.
The G20 Roadmap for Enhancing Cross-Border Payments, adopted in 2020, aims to make money transfers faster, cheaper and more transparent within seven years.
We are now just two years away from the G20’s 2027 deadline. However, anyone living, working, and doing business in Sub-Saharan Africa understands the reality. Rules are inconsistent, costs remain high and payment systems are poorly aligned. The real task is to bridge those gaps, drawing on lessons from regions already making progress through G20 payment reforms.
An ambitious global agenda meets local barriers
The roadmap set ambitious, measurable targets. It requires that three-quarters of cross-border retail payments settle in under an hour and that remittance costs fall below 3%.
The Financial Stability Board (FSB), the G20’s watchdog for the global financial system, tracks whether the world is on course. Its 2024 progress report, however, showed limited progress. Retail transfer costs increased year-on-year, and fewer payments cleared within a day. In other words, the world is moving backwards instead of forward on G20 payment reforms.
At a February 2025 side event at Zimbali in KwaZulu-Natal, co-hosted by the South African Reserve Bank (SARB) and the BIS Committee on Payments and Market Infrastructures, these barriers were brought into focus.
SARB Governor Lesetja Kganyago explained that domestic systems can process instant payments, but cross-border flows remain expensive and fragmented. In some corridors, remittance costs exceed 10%. The challenges, he noted, are structural rather than technical. They stem from regulatory misalignment, poor data exchange and a lack of trust.
Standards continue to advance globally, yet in much of Sub-Saharan Africa, the foundations are still weak. Without stronger coordination, the benefits of G20 payment reforms will never reach the businesses and households that rely on them most.
Lessons and opportunities
Other countries, especially in the Global South, show what is possible through effective policy alignment.
In India, the Unified Payments Interface has made it easy and inexpensive for people to transfer money instantly. It now connects with systems in Singapore and the UAE.
Singapore’s PayNow demonstrates how banks and non-banks can collaborate seamlessly. Europe’s TARGET Instant Payment Settlement proves that transfers across borders can clear in seconds. These examples show that when systems use common standards such as ISO 20022 and welcome non-bank participation, payments become faster, cheaper, and more reliable.
South Africa starts from a stronger position than many of its regional peers. PayShap, the domestic Rapid Payments Programme, is ISO 20022-based and offers a foundation for future cross-border connections.
Regionally, the SADC Transactions Cleared on an Immediate Basis (TCIB) scheme is live, with a South Africa–Zambia corridor launched last year. If these initiatives reach full potential, they could reduce settlement times from days to hours. They could also reduce cash dependence and move transfers away from costly informal channels. These efforts align closely with the vision of G20 payment reforms.
Fintech companies are also accelerating progress. They offer faster and more transparent alternatives to traditional banking channels. Their involvement increases competition, encourages innovation and broadens access to modern payment systems.
For businesses, the reforms promise clear pricing, quicker settlement, and fewer hidden costs buried in exchange rates or fees. Investors will benefit from faster and more reliable transfers that build confidence and improve liquidity. For small and medium-sized enterprises, access to affordable, transparent payment systems could mean the difference between regional expansion and being held back by costs.
Preparing for change
South Africa still faces internal challenges. Exchange controls remain tight, with penalties reaching up to 40% of a transaction for non-compliance.
While the rules aim to protect the economy, they often add red tape. This makes it harder for non-bank providers to compete with traditional institutions. Transparency is another weak area. Banks frequently add extra fees to foreign exchange rates without showing them separately. As a result, clients rarely know the true cost of a transfer.
The new Conduct of Financial Institutions Bill, expected to become law by the end of the year, seeks to change this. It will require providers to disclose all fees clearly. However, the reform will only succeed if properly enforced. These domestic improvements are essential for aligning with G20 payment reforms.
In conclusion
Later this month, the FSB will publish its 2025 progress report, revealing how close or far the world is from its goals. There will still be gaps, but businesses should expect stricter data requirements and higher standards. Cleaner, more accurate information will be vital to prevent compliance delays. Providers who handle data efficiently and transparently will have a competitive advantage.
Providers that already focus on efficiency, clear pricing, and strong compliance align naturally with the G20 payment reforms. This proactive approach helps businesses avoid hidden costs and delays, positioning them for success as global standards evolve.
The G20 aims to make cross-border payments faster, cheaper and more transparent. Although Sub-Saharan Africa’s challenges will take time to resolve, South Africa has an opportunity to learn from successful global examples. By embracing G20 payment reforms, the country can lower costs, speed up payments and strengthen investor confidence.
