Our Staff
Africa’s leading financial service provider, Mukuru, has stepped up to provide a solution for clients in South Africa, Lesotho, Eswatini, and Namibia by adapting to the recently revamped cross border transfer regulations in the region.
This follows a significant shift for the financial landscape of the Common Monetary Area (CMA), after the South African Reserve Bank (SARB) announced that, effective 30 September 2024, low-value electronic funds transfers (EFTs), debit and credit payments between CMA countries — namely South Africa, Lesotho, Eswatini, and Namibia — would be classified as cross-border transactions. The regulatory change is geared to enhance compliance with international standards.
The currencies of all the countries in the CMA are pegged at 1:1 with the South African rand.
And with its robust physical and digital payments infrastructure, Mukuru is well-positioned to continue providing uninterrupted electronic funds transfer services. The company emphasises its commitment to customer-centric solutions that remain resilient against regulatory shifts.
Historically, these low-value payments were processed as domestic transactions, allowing for a cost-effective and efficient payment service across the CMA. However, the new regulations have imposed greater due diligence requirements on these transactions, “necessitating a shift to the Southern African Development Community real-time gross settlement (SADC-RTGS) system, which was primarily designed for high-value payments. Additionally, from the same date, financial institutions will be required to initiate debit orders from accounts domiciled in the respective CMA countries, providing customers with enhanced protection against potential fraudulent practices,” said the South African Reserve Bank in a statement issued in July 2024.
While these changes are intended to strengthen the region’s anti-money laundering and counter-terrorism financing frameworks, they have also impacted the banking experience for many customers, potentially leading to longer processing times and increased transaction costs.
Given Mukuru’s robust offering, the company said it was providing greater financial inclusion for masses who would otherwise have struggled to transact given the new regulations with emphasis on customer-centric solutions that remain resilient against regulatory shifts.
“Our offerings, particularly the Mukuru Card, allow customers to access fast, safe, and affordable cross-border EFT services without disruption,” said Maleseli Mohapinyane, Mukuru’s Lesotho country manager.
“As competing financial service providers may struggle to adapt to the new regulations, Mukuru assures its clients that they will continue to receive the same high-quality service they have come to expect at no added cost.”
She underlined that the fintech founded in 2004 was a customer-centric business with the requisite experience and cutting-edge technology to offer seamless EFT solutions in the CMA region.
More from Africa News 24
“It is important for us to be aware of the needs of our customers and grow our financial suite of products to meet these needs. With this service, we want our customers to access much-needed funds as soon as possible, without unnecessary delays and provide the convenience of receiving money directly into a bank account, removing the hassle of getting to a location to collect cash,” Mohapinyane added.
As the CMA navigates these regulatory changes, Mukuru’s proactive approach has ensured that its customers are protected and can continue to conduct their transactions seamlessly. The financial institution provides competitive alternatives for those affected by the new regulations, reinforcing its position as a leader in the cross-border payments space, Mohapinyane said.
