South Africa’s Group of Twenty (G20) Presidency and the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) co-hosted a side event on 17 July 2025, alongside the G20 Finance Ministers and Central Bank Governors (FMCBG) meetings in Zimbali, KwaZulu-Natal.

The side event focused on advancing the effectiveness, inclusivity, and trustworthiness of cross-border payment systems in sub-Saharan Africa (SSA) by addressing not only infrastructure and data challenges, but also improving user experience and regulatory alignment.

Opening keynote remarks by Governor Kganyago

South African Reserve Bank Governor Lesetja Kganyago opened the session by underscoring the importance of fast, transparent and affordable cross-border payments for driving trade, investment, and inclusive growth across the region. He highlighted that while modern domestic payment systems enable instant fund transfers across vast areas, cross-border transactions remain fragmented, costly, and slow. These inefficiencies are often due to weak interoperability and regulatory misalignment rather than technological limitations. Citing the Financial Stability Board's latest key performance indicator data, Governor Kganyago emphasised that SSA remains the furthest from the G20 Roadmap’s targets, with average remittance costs in some corridors exceeding 10% of amounts sent. He acknowledged the significant progress made since 2020 under the G20 Roadmap, but called for renewed commitment, smarter coordination, and strong regional leadership to close the remaining gaps. Additionally, Governor Kganyago stressed the need to focus on unlocking data, advancing interoperability, and building trust in cross-border payments to ensure meaningful progress.

Session I: Deepening insights into cross-border payments data and exploring new data sources

The first session explored the state of domestic and regional payment infrastructure in SSA, emphasising its foundational role in enabling cross-border payment reform. It highlighted the rapid growth of fast payment systems (FPS), with 31 systems now live across the African continent, though interoperability and adoption of the ISO 20022 messaging standard remain limited. Achieving universal access to fast payments by 2030 requires inclusive design and regulatory support. Regional platforms such as the Southern African Development Community (SADC) Real-Time Gross Settlement (RTGS) – known as the SADC-RTGS system – and the Transactions Cleared on an Immediate Basis (TCIB) payment scheme were highlighted. TCIB enables low-value, ISO 20022-based payments across six corridors and plans to offer additional settlement currencies. For South Africa, regional remittance corridors are most relevant. In many of these corridors, a shift from informal to formal channels, driven by non-bank innovation and digitalisation, is evident. Despite progress, challenges remain, including high cash reliance, market concentration and regulatory barriers. The panellists stressed the need for corridor-specific diagnostics, robust domestic systems and technical assistance to improve interoperability, harmonise regulatory frameworks and expand access for non-banks. These elements are key to fostering competition and reducing costs in cross-border payments.

Keynote address by Governor Panetta

Governor of Banca d’Italia and Chair of the CPMI Fabio Panetta stressed the urgent need to reform cross-border payments, especially in SSA, where high costs, limited access, and delays persist. With remittances contributing over 3% of the continent’s GDP – and more than 20% in some countries – he highlighted the importance of reducing fees and directing payment flows to formal channels to enhance safety and efficiency. The continued prevalence of informal channels is largely due to limited digital options, presenting risks but, at the same time, business opportunities for new entrants.

Governor Panetta outlined the CPMI’s work on payment pre-validation, payee confirmation, and improved messaging standards to boost transparency and reduce fraud. He emphasised that trust and transparency are essential for adoption and financial inclusion. Strengthening domestic payment systems, such as upgrading RTGS platforms, expanding FPS and adopting ISO 20022, is foundational. Governor Panetta concluded by calling for deeper public-private collaboration to achieve inclusive, interoperable, and secure cross-border payments, noting that achieving the G20 Roadmap goals is vital for financial inclusion, regional development, and unlocking economic potential across SSA.

Session 2: Leveraging payment pre-validation to increase trust and address issues before money moves

The second panel focused on deploying interoperable payment solutions and harmonising payment validation features to build trust among end users and advance financial inclusion. It detailed the process for building seamless, trusted cross-border payment systems in SSA. The panel stressed the importance of embedding interoperability from the outset to avoid costly retrofitting and ensure that innovation leads to lower costs and improved user experiences. Regional schemes such as TCIB were highlighted for their role in supporting intra-African trade, with flexible interlinking models needed to accommodate varying levels of domestic infrastructure development. In regions such as SADC, adaptable solutions are essential. However, infrastructure alone is insufficient – regulatory alignment, shared technical standards, and public-private collaboration are also critical. The panel discussed how regulation can support inclusive innovation, advocating for risk-based approaches to anti-money laundering and combating the financing of terrorism (AML/CFT) as well as simplified due diligence for low-risk transactions. Transaction-level data was seen as vital for diagnosing corridor-specific frictions and guiding targeted interventions. Trust must be cultivated through performance and consumer education, with central banks playing a key role in promoting financial integrity and inclusion. The panel concluded by calling for coordinated efforts to build inclusive, interoperable systems.