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Africa’s leading financial service provider, Mukuru, has stepped up to provide a solution for customers in South Africa, Lesotho, and Eswatini by leveraging its extensive cross-boarder network to help them adapt to the recently revamped cross border transfer regulations in the region.
The financial landscape of the Common Monetary Area (CMA) is poised to undergo a significant transformation. The South African Reserve Bank (SARB) has mandated that, from September 30, 2024, low-value electronic funds transfers (EFTs), debit, and credit payments between CMA countries (South Africa, Lesotho, Eswatini, and Namibia) will be subject to cross-border transaction regulations. This regulatory shift is aimed at enhancing the region’s compliance with international standards.
The currencies of all Common Monetary Area (CMA) countries are fixed to the South African rand at a one-to-one exchange rate.
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.
Although designed to enhance the region’s anti-money laundering and counter-terrorism financing measures, these regulatory adjustments could potentially lead to increased processing times and fees for cross-border transactions, impacting the banking experience for numerous customers.
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 customers that they will continue to receive the same high-quality service they have come to expect at no added cost.”
She underscored the company’s longstanding commitment to customer satisfaction, drawing upon its extensive experience and state-of-the-art technology to offer seamless EFT solutions within the CMA region.
“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 adapts to these new regulations, Mukuru’s proactive stance safeguards its customers and ensures uninterrupted transactions. By offering competitive alternatives, Mukuru solidifies its position as a leading player in the cross-border payments industry,” Mohapinyane stated.
