A New Beginning Post-'Grey List'

Following its successful exit from the FATF 'grey list' in October 2025, South Africa's financial system has gained enhanced international credibility. This regulatory milestone facilitates deeper regional financial integration and cooperation.

The South African Reserve Bank is prioritizing the modernization of existing payment systems, adopting a measured approach to financial innovation.

Technology-Driven Innovation

Domestically, the PayShap instant payment system has significantly reduced transaction times and costs. Regionally, integration with the Pan-African Payment and Settlement System (PAPSS) enables local currency settlement across 16 African nations.

30-40%
Average cost reduction
Days → Minutes
Settlement time improvement

This technological infrastructure provides the foundation for more efficient cross-border trade within the Southern African Development Community (SADC).

Fintech Ecosystem Growth

South Africa's fintech sector is driving payment innovation. Local companies like PayFast and Yoco serve SMEs, while global firms like PayPal plan to launch new services in 2026.

"We are committed to building a more inclusive, efficient, and resilient financial system. The modernization of South Africa's payment system is central to supporting economic integration across Africa."

— Mr. Lesetja Kganyago, Governor of the South African Reserve Bank

2026 Outlook: Reshaping Regional Trade

By 2026, the payment network centered on South Africa is expected to further reduce regional transaction costs by 30-50% and advance progress toward increasing intra-African trade to 20% of total trade.

This transformation supports the African Continental Free Trade Area (AfCFTA) goal of unlocking $40 billion in additional intra-African trade financing. Efficient payment systems are becoming critical infrastructure for regional economic integration.

As Africa develops its own financial infrastructure solutions, South Africa stands at the forefront of this regional transformation.