Programme | SADC Payments and Remittances

Remittances

There are an estimates 3,3 million migrants living in South Africa, and an estimated 17 billion rand of remittances sent between South Africa and SADC. Of these – 80% are informal. FMT’s work focusses on increasing appropriate access to formal cross border remittances by identifying regulatory blockages, product and price assessments, accessibility assessments and piloting of innovative solutions.

The introduction of Risk based KYC/AML (RBA) regulations could impact the inclusion of those most vulnerable – FMT is supporting the development of frameworks for FSP’s to move to RBA in the region.

Payments

FMT provides technical support to Central Banks and Regulators in payments and financial services to increase financial inclusion. The support is linked to the proprieties identified in the MAP process. Examples of work include:

  • development of guidelines (such as Mobile Money Guidelines for CCBG SADC)
  • development of Credit Acts (such as the Credit Information Sharing Act for Botswana)

Our work in the region includes specific technical support to the CCBG and training in financial inclusion and Payments.

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Understanding Global Remittances Corridors in the Democratic...

The Democratic Republic of Congo (DRC) has a long standing history of migrant flows, and historically flows to and from Europe have been of particular importance. However, substantial political and economic upheavals from the 1990s onwards have been associated with major changes to the pattern of Congolese migration. Congolese emigrants increased in numbers, were increasingly […]

SADC Payments and Remittances
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The Impact of Remittances in Lesotho, Malawi and Zimbabwe

Households in sub-Saharan Africa have a long tradition of cross-border migration and associated remittances. During periods of economic or political instability, or simply when opportunities at home are scarce, the funds remitted by migrants are a lifeline that can help keep food on the table, children at school, and roofs over heads. However, from an […]

SADC Payments and Remittances
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Cross-Border Remittance Pricing

This report was commissioned by FinMark Trust and carried out through Genesis to assess the cost of cross-border remittances in South Africa. Using a new approach based on conducting actual cross-border transactions, the report verifies the pricing offered to customers in the market and compares this cost to other studies conducted by the World Bank […]

SADC Payments and Remittances
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Updating the South Africa-SADC remittance channel estimates

Remittance markets comprise both a commercial opportunity for financial sector operators, and an important means of supporting impoverished communities. In 2012 FinMark Trust commissioned an exercise to estimate the size of remittance flows from South Africa, which is a key regional hub for economic migration, to the various countries in the Southern African Development Community […]

SADC Payments and Remittances
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Cross-Border Remittances 2016

The World Bank estimates that in 2016 remittances from migrant workers to developing countries will be worth USD 440 billion. More than twice that of foreign aid. Remittances play a critical role in supporting the welfare for many individuals and households in developing countries. Moreover, remittances can contribute to economic growth, with research indicating that […]

SADC Payments and Remittances
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Why retailers?

FinMark Trust has recently commissioned a number of studies exploring how financial services are distributed to the lower-income market. This includes research on low-cost bank branches, mapping the potential distribution channels in SADC countries, and a review of the business case for retailers to provide financial services. In particular, the latter study explored the increasing […]

SADC Payments and Remittances
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Shoprite Money Transfer

This cross-border money transfer project is the outcome of FinMark Trust continuous advocacy for cheaper official remittance channels in the SADC region. It is a result of intensive consultations with the South African Reserve Bank, Shoprite South Africa and Shoprite Lesotho, as well as Capital Bank in South Africa to provide the people of Lesotho […]

SADC Payments and Remittances
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Retailers’ motivation for offering financial services

A number of financial products and services are offered by or through retailers in South Africa. These span the broad financial services spectrum including transactional, savings, insurance and credit products. This research aims to understand retailers? motivation for providing these financial services more fully. This study aims to build on several previous research projects. In […]

SADC Payments and Remittances
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Why retailers – A demand-side perspective of key-drive...

Presentation given at a stakeholder workshop on 2 June 2014 Retailers in South Africa provide a range of financial products and services that span the financial services spectrum, including credit, insurance, money transfer, and savings products. FinMark Trust, in collaboration with Cenfri, has recently conducted a number of studies to explore the supply-side considerations for […]

SADC Payments and Remittances
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Mapping of potential financial services distribution channel...

The aim of the study is to produce a mapping of potential financial services distribution channels in the Southern African Development Community (SADC). The study is conducted at country and cross country levels and includes all 14 member states of SADC. This report documents the findings generated from this study, as well as recommendations for […]

SADC Payments and Remittances
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Mapping the retail payments services landscape regional repo...

The report entitled ‘Mapping the Retail Payment Services Landscape’ is part of a series commissioned by FinMark Trust to examine the retail payments landscape in Malawi, Mozambique, Zimbabwe and Zambia. It builds on four country-specific reports, summarising and distilling the key findings from each of the four countries.

SADC Payments and Remittances
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Mapping the retail payment services landscape in Zambia

This report is part of a series commissioned by FinMark Trust to examine the retail payments landscape in Malawi, Mozambique, Zambia and Zimbabwe. It distills key findings from research conducted in Zambia in March 2012 and provides tools for understanding key drivers for retail payments system development in the country. Zambia has made remarkable progress […]

SADC Payments and Remittances
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Mapping of retail payment services landscape in Malawi

This report is part of the series commissioned by FinMark Trust to examine the retail payments landscape in Malawi. This study hypothesizes that the ability to make payments conveniently and affordably has a material impact on the financial lives of the poor. This hypothesis also assumes that (i) existing formal payment products are not designed […]

SADC Payments and Remittances
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Mapping the retail payment services landscape in Mozambique

This research looks at the issues around the state of retail payment systems development in Mozambique, a country with more than half of its population living in poverty and 78% of the adults being financially excluded.  This report was based on document review, interviews with the regulator and providers, and focus groups and informal discussions […]

SADC Payments and Remittances
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Mapping the Retail Payment Services Landscape in Zimbabwe

This report is part of the series commissioned by FinMark Trust to examine the retail payments landscape in Malawi, Mozambique, and Zimbabwe. It distills key findings from country research conducted in Zimbabwe in October 2011 and provides tools for understanding the landscape for retail payments in Zimbabwe. This study hypothesizes that the ability to make […]

SADC Payments and Remittances
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Remittances from South Africa to SADC

It is well known that there are large remittance flows from South Africa to other countries in the SADC region and that a substantial proportion of such flows are informal – sent for example via cross-border mini-bus taxis or buses. However, data on the size of this remittance market is hard to come by. Data […]

SADC Payments and Remittances