JOHANNESBURG, Nov. 28 (Xinhua) -- With cross-border payments still facing obstacles in sub-Saharan Africa, experts and industry practitioners have voiced hope that the attention the issue received at the G20 summit in South Africa will translate into practical reforms.
"We need simplified and harmonized regulations that keep up with technology. That would make transactions faster, cheaper and more reliable for consumers and the economy," said Tendai Tizirai, head of expansion at Mukuru, a major digital remittance company headquartered in South Africa.
"The main challenge is regulatory harmonization. Each country has its own rules, making product deployment complex. Building trust is also essential, as customers need to know that formal channels are safer, faster and more transparent," said Tizirai.
Tizirai noted South Africa as the region's largest corridor for cross-border payments, with data from the South African Reserve Bank showing that remittance outflows to the rest of the southern African region rose to 19 billion rand (about 1.11 billion U.S. dollars) in 2024.
"Most transfers range from about 50 to 400 dollars and are used for school fees, medical costs and household expenses," she said, noting that remittances remain an important economic driver in several countries.
In July, the G20 Finance Ministers and Central Bank Governors Meeting held in Durban, South Africa, flagged infrastructure gaps, data barriers and uneven regulations as key obstacles, saying that improved cross-border payment systems could bolster trade, financial flows and investment across the continent.
According to experts, the region's main challenges are not technological but stem from weak interoperability and regulatory misalignment across the market. Sub-Saharan Africa remains the furthest from meeting the G20 Roadmap targets to cut costs and speed up transactions, with remittance fees in some corridors still topping 10 percent of the amount sent.
"To meet the targets, we need broad participation in the formal financial system from grassroots users to businesses. Whether through verified e-wallets or other digital banking tools, we have to move people from informal to formal channels, and we need fast payment systems to support that," said Sandile Swana, a South African analyst.
He noted that this must be followed by regulatory reforms and stronger political momentum, adding that cross-border payment rules need to be more compatible and aligned across markets. Clear regulations and a common framework, he said, would help accelerate progress.
Looking beyond intra-African corridors, China has become one of Mukuru's most active destinations for outbound payments, reflecting deepening financial ties between Africa and China.
Huang Hsin-Hung, Mukuru's head of Asia operations, said the company now runs what is likely South Africa's largest corridor for sending money to China, supported by partnerships with Alipay, WeChat Pay and UnionPay.
These integrations allow customers to remit funds "instantly, safely and conveniently," mainly for family support and education expenses, said Huang.
Huang said the China corridor has grown steadily over the past six years as more users shift from informal channels to regulated platforms. "Once Chinese customers tested the service, they found it reliable and instant," he said.
He said Mukuru aims to deepen its cooperation with Chinese partners, noting China's efforts to modernize global payment systems and promote local-currency settlement.
Such developments, he added, could help reduce costs and improve financial flows between China and Africa. "We see strong potential in our cooperation with China and want to keep building on it."
