Financial innovation to improve competitiveness and inclusion
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Individual Reform: Financial innovation to improve competitiveness and inclusion 2026 - 2027

Crypto asset policy.

No data available for the deliverable: Crypto asset policy.

No data available for the deliverable: Crypto asset policy.

No data available for the deliverable: Crypto asset policy.

No data available for the deliverable: Crypto asset policy.

No data available for the deliverable: Crypto asset policy.

No data available for the deliverable: Crypto asset policy.

No data available for the deliverable: Crypto asset policy.

No data available for the deliverable: Crypto asset policy.

Summary

As of October 2022, crypto assets are official "financial products" under the FAIS Act and CASP registration framework, which has been operational since April 2023. OECD CARF and Common Reporting Standards (CRS) regulations were published by NT and SARS in September 2025, effective March 2026. In Q2-26, the draft Capital Flow Management Regulations 2026 (GN 54520, 17 April 2026) formally incorporated crypto assets into the exchange control framework for the first time, classifying them as "capital", requiring above-threshold cross-border transactions through licensed CASPs and mandating written declaration of holdings within 30 days. Public comment deadline is 10 June 2026.

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Is it working?

The regulatory intent to formalise crypto within the exchange control framework is sound and reduces illicit flow risk. CASP licensing is maturing and transparency of crypto flows is improving. However, the April 2026 draft regulations have generated significant industry concern around mandatory declaration of existing holdings, purpose-statement requirements and potentially overly restrictive asset forfeiture terms. The public comment process closing 10 June 2026 will be decisive.

Actions

Key actions: NT and SARS published OECD CARF/CRS draft regulations in September 2025, effective March 2026. FSCA issued an information request to CASPs in October 2025 (submissions due December 2025). Draft Capital Flow Management Regulations were gazetted on 17 April 2026, formally incorporating crypto into the exchange control framework. The FSCA continues CASP licensing enforcement.

Are there plans?

Final Capital Flow Management Regulations are due on 30 June 2026 following public comment. The CARF/CRS regulatory regime was effective from March 2026. NT and SARB will revise the draft based on public input and industry is actively engaging on self-custody and existing holders' provisions. CARF/CRS has been operational from March 2026; next up is exchange control incorporation in the draft regulation stage; with public comment open until 10 June 2026.

Is it on the agenda?

NT, SARS, FSCA and SARB all maintain crypto asset regulation as a standing priority. The draft Capital Flow Management Regulations represent the latest and most consequential government action, announced in the 2026 Budget Speech. Penalties under draft Capital Flow Management Regulations include fines up to R1m and five years' imprisonment for non-compliance with crypto exchange control provisions. NT noted that crypto exchange control provisions complement existing FSCA and FIC regulations.

Goals

To establish a coherent, phased regulatory framework for crypto assets that protects consumers, addresses AML/CFT and cross‑border‑flow risks, and allows responsible innovation and competition in digital‑asset markets.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

Analyst: Tinashe Kambadza
Status: In progress
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    Supporting SMEs through payments innovation

    Summary

    This promotes the growth of the overall SME sector which would also ultimately encourage employment in underserved communities.

    Canvas not supported.

    Is it working?

    Financial inclusion for SMEs through payments innovations in South Africa would ultimately involve leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. However, the SME sector has been historically underserved implying that significant resources will be needed for this effort. Despite this, recent increased interest in the SME sector by some of the local banks should result in increased financial inclusion in the sector.

    Actions

    Practical interventions to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027.

    Are there plans?

    The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders in addition to reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.

    Is it on the agenda?

    In collaboration with Switzerland, partners will include financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.

    Goals

    When effectively implemented, SME payments reform in South Africa should aim to create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption, and reducing transaction costs and inefficiencies.

    References

    Departments / Govt Institutions

    Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

    Summary

    This promotes the growth of the overall SME sector which would also ultimately encourage employment in underserved communities.

    Canvas not supported.

    Is it working?

    Financial inclusion for SMEs through payments innovations in South Africa would ultimately involve leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. However, the SME sector has been historically underserved implying that significant resources will be needed for this effort. Despite this, recent increased interest in the SME sector by some of the local banks should result in increased financial inclusion in the sector.

    Actions

    Practical interventions to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027.

    Are there plans?

    The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders in addition to reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.

    Is it on the agenda?

    In collaboration with Switzerland, partners will include financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.

    Goals

    When effectively implemented, SME payments reform in South Africa should aim to create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption, and reducing transaction costs and inefficiencies.

    References

    Departments / Govt Institutions

    Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

    Summary

    The aim is to support SME's using technological developments related to payment systems. This would promote the growth of the overall SME sector which would also ultimately encourage employment in underserved communities.

    Canvas not supported.

    Is it working?

    Financial inclusion for SMEs through payments innovations in South Africa would ultimately involve leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. However, the SME sector has been historically underserved implying that significant resources will be needed for this effort. Despite this, recent increased interest in the SME sector by some of the local banks should result in increased financial inclusion in the sector. Nonetheless, financial inclusion of SMEs is yet to be fully achieved given that renewed interest in the sector is somewhat recent.

    Actions

    Practical interventions are planned to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027. These initiatives are part of a broader strategy by the SARB to drive South Africa towards a more cashless society, with a strong focus on supporting SMEs through digitalisation.

    Are there plans?

    The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will be able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders in addition to reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.

    Is it on the agenda?

    In collaboration with Switzerland, partners will include financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.

    Goals

    When effectively implemented, SME payments reform in South Africa should create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption and reducing transaction costs and inefficiencies.

    References

    Departments / Govt Institutions

    Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

    Summary

    The aim is to support SME's using technological developments related to payment systems. This would promote the growth of the overall SME sector which would also ultimately encourage employment in underserved communities.

    Canvas not supported.

    Is it working?

    Financial inclusion for SMEs through payments innovations in South Africa would ultimately involve leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. However, the SME sector has been historically underserved implying that significant resources will be needed for this effort. Despite this, recent increased interest in the SME sector by some of the local banks should result in increased financial inclusion in the sector. Nonetheless, financial inclusion of SMEs is yet to be fully achieved given that renewed interest in the sector is somewhat recent.

    Actions

    Practical interventions are planned to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027. These initiatives are part of a broader strategy by the SARB to drive South Africa towards a more cashless society, with a strong focus on supporting SMEs through digitalisation.

    Are there plans?

    The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will be able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders in addition to reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.

    Is it on the agenda?

    In collaboration with Switzerland, partners will include financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.

    Goals

    When effectively implemented, SME payments reform in South Africa should create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption and reducing transaction costs and inefficiencies.

    References

    Departments / Govt Institutions

    Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

    Summary

    The aim is to support SME's using technological developments related to payment systems. This would promote the growth of the overall SME sector which would also ultimately encourage employment in underserved communities.

    Canvas not supported.

    Is it working?

    Financial inclusion for SMEs through payments innovations in South Africa would ultimately involve leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. However, the SME sector has been historically underserved implying that significant resources will be needed for this effort. Despite this, recent increased interest in the SME sector by some of the local banks should result in increased financial inclusion in the sector. Nonetheless, financial inclusion of SMEs is yet to be fully achieved given that renewed interest in the sector is somewhat recent.

    Actions

    Practical interventions are planned to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027. These initiatives are part of a broader strategy by the SARB to drive South Africa towards a more cashless society, with a strong focus on supporting SMEs through digitalisation.

    Are there plans?

    The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will be able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders in addition to reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.

    Is it on the agenda?

    In collaboration with Switzerland, partners will include financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.

    Goals

    When effectively implemented, SME payments reform in South Africa should create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption and reducing transaction costs and inefficiencies.

    References

    Departments / Govt Institutions

    Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

    Summary

    Financial inclusion for SMEs through payments innovations in South Africa involves leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. The SME sector has been historically underserved, implying that significant resources will be needed for this effort. In collaboration with Switzerland, South Africa is partnering with financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.

    Canvas not supported.

    Is it working?

    Financial inclusion of SMEs remains a challenge. However, recent increased interest in the SME sector by some local banks should result in increased financial inclusion in the sector. Payments innovation for SMEs is ongoing, with National Treasury and SARB supporting non-bank access to the payment system and regulatory changes planned in 2025. Amendments to the National Payment System Act are in progress.

    Actions

    Practical interventions are planned to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027.

    Are there plans?

    The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will be able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders and reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.

    Is it on the agenda?

    These initiatives are part of a broader strategy by the SARB to drive South Africa towards a more cashless society, with a strong focus on supporting SMEs through digitalisation.

    Goals

    SME payments reform aims to create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption and reducing transaction costs and inefficiencies. Also forms part of financial inclusion drive.

    References

    Departments / Govt Institutions

    Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

    Summary

    Financial inclusion for SMEs through payments innovations in South Africa involves leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. The SME sector has been historically underserved, implying that significant resources will be needed for this effort. In collaboration with Switzerland, South Africa is partnering with financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability. FSCA, SARB, Payfast, Mastercard, and private-public partners rolled out tailored payment innovations for SMEs, including multi-channel digital payments, QR, e-wallet, and instant EFT solutions, plus engagement with payments integration (PayShap) for real-time retail and business payments. Market research shows over 90% of SA SMEs now use digital payments, with preference for flexible, multi-method offerings​.

    Canvas not supported.

    Is it working?

    Financial inclusion of SMEs remains a challenge. However, recent increased interest in the SME sector by some local banks should result in increased financial inclusion in the sector. Payments innovation for SMEs is ongoing, with National Treasury and SARB supporting non-bank access to the payment system and regulatory changes planned through 2025. Amendments to the National Payment System Act are in progress. Adoption has surged and SME satisfaction and financial inclusion rates are positive. Interoperability and compliance with new payment channels are also being scaled up.

    Actions

    Practical interventions are planned to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027. Actions include ongoing SME support programmes (Payfast, industry associations), continued SARB/FSCA review of payment law reforms and real-time payments uptake tracked and encouraged by sector partners​.

    Are there plans?

    The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will be able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reduce costs for cross-border traders and reduce dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women. The next phase plans for expansion of instant payments integration, interoperability compliance (QR/ACH/PayShap), SME enablement support, rollout of further digital financial identity fintech, and regulatory sandbox trials for new payment methods.

    Is it on the agenda?

    These initiatives are part of a broader strategy by the SARB to drive South Africa towards a more cashless society, with a strong focus on supporting SMEs through digitalisation. Payment innovation is written into SARB, FSCA, and NT strategy documents and quarterly financial inclusion workstreams, including sectoral outreach to SMEs and payment industry.

    Goals

    SME payments reform aims to create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption and reduce transaction costs and inefficiencies. Also forms part of financial inclusion drive.

    References

    Departments / Govt Institutions

    Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

    Summary

    Deliverables include: (i) rollout and adoption of PayShap across major banks, enabling instant low‑value payments, “request‑to‑pay” functionality and proxy addressing; (ii) establishment of the NPU and implementation of activity‑based licensing for payments, allowing regulated non‑bank PSPs to access shared infrastructure; and (iii) associated regulatory and supervisory frameworks (SARB, PA, FSCA) that ensure safety, interoperability and fair access. This package is intended to lower transaction costs, reduce reliance on cash and give SMEs more options for receiving and making payments. South Africa’s Rapid Payments Programme (PayShap) and the planned National Payments Utility (NPU) are central to SME‑oriented payments reform. PayShap provides real‑time, low‑value payments via proxies (eg, informal traders. The 2026 Budget’s Annexure E explains that the NPU will provide open, shared digital payments infrastructure and, together with an activity‑based licensing regime, allow non‑bank providers to participate directly in key payment activities from H2 2026, fostering competition and innovation in SME‑facing payments solutions.

    Canvas not supported.

    Is it working?

    PayShap is critical for SME‑friendly instant payments and early take‑up suggests it is useful for low‑value transactions, though fees and bank implementation choices will determine how attractive it is relative to card and EFT. The big unlocks will be successful establishment of the NPU, genuinely open access for PSPs and pricing reforms that make digital acceptance clearly cheaper and easier than cash for small merchants.

    Actions

    Actions taken: (i) SARB and PASA have launched PayShap, with multiple banks live and others onboarding; (ii) SARB and National Treasury have set out the NPU and activity‑based licensing model in policy documents and Annexure E, with implementation targeted for H2 2026; (iii) regulators have updated or proposed reforms to the National Payment System framework to support open, risk‑based access for PSPs; and (iv) government and industry have promoted PayShap and instant‑payments adoption among merchants and SMEs through awareness campaigns and product roll‑outs.

    Are there plans?

    Plans include: (i) expanding PayShap participation and use‑cases (QR payments, request‑to‑pay, integration into merchant and platform solutions); (ii) finalising NPU governance and operating model and rolling out activity‑based licensing that opens acquiring and initiation to non‑banks from H2 2026; (iii) aligning pricing and merchant‑service charge structures to ensure that benefits reach SMEs, not just intermediaries; and (iv) targeted outreach and support so informal and micro‑businesses adopt digital payments rather than remaining cash‑only.

    Is it on the agenda?

    The 2026 Budget highlights payments modernisation as a core lever for inclusion and SME growth, noting that the NPU and instant‑payments reforms will support small merchants and informal businesses by providing cheaper, more accessible digital payments. Industry and fintech commentary frames PayShap as a key step in reducing cash usage, with particular benefits for SMEs and micro‑enterprises.

    Goals

    Use payments innovation – especially instant, low‑cost digital payments and open access to payment infrastructure – to improve SMEs’ access to affordable, efficient payment and collections services, thereby boosting competitiveness, formalisation and financial inclusion.

    References

    Departments / Govt Institutions

    Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

    Summary

    Financial inclusion for SMEs through payments innovations in South Africa involves leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. Deliverables include: (i) rollout and adoption of PayShap across major banks, enabling instant low‑value payments, “request‑to‑pay” functionality and proxy addressing; (ii) establishment of the NPU and implementation of activity‑based licensing for payments, allowing regulated non‑bank PSPs to access shared infrastructure; and (iii) associated regulatory and supervisory frameworks (SARB, PA, FSCA) that ensure safety, interoperability and fair access. This package is intended to lower transaction costs, reduce reliance on cash and give SMEs more options for receiving and making payments. South Africa’s Rapid Payments Programme (PayShap) and the planned National Payments Utility (NPU) are central to SME‑oriented payments reform. PayShap provides real‑time, low‑value payments via proxies (eg, informal traders). The 2026 Budget’s Annexure E explains that the NPU will provide open, shared digital payments infrastructure and, together with an activity‑based licensing regime, allow non‑bank providers to participate directly in key payment activities from H2 2026, fostering competition and innovation in SME‑facing payments solutions.

    Canvas not supported.

    Is it working?

    Adoption has surged, SME satisfaction and financial inclusion rates are positive; and interoperability and compliance with new payment channels are being scaled up. Since PayShap's launch in March 2023, over 461-million transactions worth R403bn had been processed by late 2025, with daily volumes exceeding one million and with around five million ShapIDs registered. From March 2023 to March 2026, monthly electronic transaction volumes across South Africa's payments infrastructure grew 31%, from 149 million transactions a month worth R1.2tn, to 195.5 million transactions a month worth R1.5tn. Market surveys from PayInc, Mastercard and SARB highlight the SME digital payment transformation trend; further upgrades are planned for 2026.

    Actions

    Actions taken: (i) SARB and PASA have launched PayShap, with multiple banks live and others onboarding; (ii) SARB and National Treasury have set out the NPU and activity‑based licensing model in policy documents and Annexure E, with implementation targeted for H2 2026; (iii) regulators have updated or proposed reforms to the National Payment System framework to support open, risk‑based access for PSPs; and (iv) government and industry have promoted PayShap and instant‑payments adoption among merchants and SMEs through awareness campaigns and product rollouts. There are ongoing SME support programmes (Payfast, industry associations), as well as continued SARB/FSCA review of payment law reforms. Real-time payments uptake is being tracked and encouraged by sector partners​.

    Are there plans?

    Plans include: (i) expanding PayShap participation and use‑cases (QR payments, request‑to‑pay, integration into merchant and platform solutions); (ii) finalising NPU governance and operating model and rolling out activity‑based licensing that opens acquiring and initiation to non‑banks from H2 2026; (iii) aligning pricing and merchant‑service charge structures to ensure that benefits reach SMEs, not just intermediaries; and (iv) targeted outreach and support so informal and micro‑businesses adopt digital payments rather than remaining cash‑only. The next phase plans for expansion of instant payments integration, interoperability compliance (QR/ACH/PayShap), SME enablement support, rollout of further digital financial identity fintech, and regulatory sandbox trials for new payment methods.

    Is it on the agenda?

    The 2026 Budget highlights payments modernisation as a core lever for inclusion and SME growth, noting that the NPU and instant‑payments reforms will support small merchants and informal businesses by providing cheaper, more accessible digital payments. Industry and fintech commentary frames PayShap as a key step in reducing cash usage, with particular benefits for SMEs and micro‑enterprises. Payment innovation is written into SARB, FSCA and NT strategy documents and quarterly financial inclusion workstreams, including sectoral outreach to SMEs and payment industry.

    Goals

    Use payments innovation – especially instant, low‑cost digital payments and open access to payment infrastructure – to improve SMEs’ access to affordable, efficient payment and collections services, thereby boosting competitiveness, formalisation and financial inclusion.

    References

    Departments / Govt Institutions

    Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

    Analyst: Tinashe Kambadza
    Status: In progress
    Last Updated:
    Next Update:
    Got an Update? Follow this reform
    Reform Area:
    Reform:

      If you would like to alert our analysts to an update you are aware of in this particular reform area, please complete the form below and submit it to us. Please ensure you include links to any press releases or other documents to confirm the reforms and provide detail to allow our analysts to assess the changes. Our team will review it.

      Synthetic Financial Centre

      No data available for the deliverable: Synthetic Financial Centre

      No data available for the deliverable: Synthetic Financial Centre

      No data available for the deliverable: Synthetic Financial Centre

      No data available for the deliverable: Synthetic Financial Centre

      No data available for the deliverable: Synthetic Financial Centre

      No data available for the deliverable: Synthetic Financial Centre

      No data available for the deliverable: Synthetic Financial Centre

      No data available for the deliverable: Synthetic Financial Centre

      Summary

      The February 2026 Budget endorsed the establishment of the Synthetic Financial Centre (SFC). The SFC is an initiative responding to the competitive erosion of South Africa’s ability to attract global capital flows: Johannesburg and Cape Town have slipped to 94th and 92nd globally in the Global Financial Centres Index, while Mauritius, Casablanca and Kigali have risen to 52nd, 56th and 65th by implementing coordinated international financial centre strategies. Investment institutions will be able to operate funds and management companies in foreign currencies within South Africa’s borders through the SFC. This opens the way to bring back the asset management activity currently happening in offshore centres. Fund managers will be able to manage global portfolios in currencies other than rand, able to charge fees on those portfolios in other currencies and report to clients in other currencies. This is a big stride towards matching the environments that fund managers experience in global centres. The centre is “synthetic” in that it will not be a physical location but be defined in terms of a category of institutions within the exchange control framework. Institutions in the SFC will be able to trade non-rand instruments without restriction, enabling them to efficiently manage global portfolios. The SFC initiative was launched by Operation Phumelela, which is South Africa’s Financial Sector Competitiveness Taskforce, established in 2024 to enhance the country’s position as a leading international financial centre and gateway for investment into Africa. The task force was convened by industry leaders to work with government and regulators to implement structural reforms that improve competitiveness, deepen capital markets and support economic growth through enhanced financial sector capabilities. [NOTE: Operation Phumelela is convened by Krutham, which also manages the BLSA Tracker.]

      Canvas not supported.

      Is it working?

      Not yet in effect.

      Actions

      The establishment of the SFC was formalised in the February 2026 Budget, having been drawn up by Operation Phumelela.

      Are there plans?

      The next step is to enable listing and trading of non-rand instruments on South African capital markets. This will allow issuers and investors to use the SFC to list shares and debt instruments in South Africa rather than being forced to issue these abroad. Such reforms are a logical end point to improving competitiveness and match the capabilities of Mauritius, Dubai and latterly Rwanda, though we anticipate these will take longer to consolidate.

      Is it on the agenda?

      Approved in the February 2026 Budget.

      Goals

      The main goal is to reverse the competitive erosion of South Africa’s ability to attract global capital flows: Johannesburg and Cape Town have slipped to 94th and 92nd globally in the Global Financial Centres Index, while Mauritius, Casablanca and Kigali have risen to 52nd, 56th and 65th by implementing coordinated international financial‑centre strategies. Investment institutions will be able to operate funds and management companies in foreign currencies within South Africa’s borders through the SFC. This opens the way to bring back the asset management activity currently happening in offshore centres. Fund managers will be able to manage global portfolios in currencies other than rand, able to charge fees on those portfolios in other currencies and report to clients in other currencies. This is a big stride toward matching the environments that fund managers experience in global centres. The centre is “synthetic” in that it will not be a physical location but be defined in terms of a category of institutions within the exchange control framework. Institutions in the SFC will be able to trade non-rand instruments without restriction, enabling them to efficiently manage global portfolios.

      References

      Departments / Govt Institutions

      Financial Intelligence Centre (FIC) Financial Sector Conduct Authority (FSCA) National Treasury Prudential Authority South African Reserve Bank (SARB)

      Analyst: Tinashe Kambadza
      Status: In progress
      Last Updated:
      Next Update:
      Got an Update? Follow this reform
      Reform Area:
      Reform:

        If you would like to alert our analysts to an update you are aware of in this particular reform area, please complete the form below and submit it to us. Please ensure you include links to any press releases or other documents to confirm the reforms and provide detail to allow our analysts to assess the changes. Our team will review it.

        Tokenisation (aka Blockchain)

        Summary

        Tokenisation could enhance access to funds, improve transparency and accountability and increase FDI. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.

        Canvas not supported.

        Is it working?

        Given that the overview is yet to be published, it's too early to tell whether reforms will be effective. Furthermore, once published, the overview will need to be implemented in the financial market to establish effectiveness.

        Actions

        Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.

        Are there plans?

        Publications of the overview and policy/regulation blueprint are expected during 2024.

        Is it on the agenda?

        The IFWG is evaluating the impact of tokenisation on financial markets. It is improving awareness of tokenisation, clarity on regulations and assessing risks associated in the market with regards to FDI in financial markets.

        Goals

        When effectively implemented, the reform should leverage technologies to modernise financial markets, improve access to capital and grow the economy as well as ensuring that there is protection for investors. This would also attract foreign direct investment while ensuring stability in local financial markets.

        Documents

        References

        Departments / Govt Institutions

        Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

        Summary

        Tokenisation could enhance access to funds, improve transparency and accountability and increase FDI. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.

        Canvas not supported.

        Is it working?

        Given that the overview is yet to be published, it's too early to tell whether reforms will be effective. Furthermore, once published, the overview will need to be implemented in the financial market to establish effectiveness.

        Actions

        Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.

        Are there plans?

        Publications of the overview and policy/regulation blueprint are expected during 2024.

        Is it on the agenda?

        The IFWG is evaluating the impact of tokenisation on financial markets. It is improving awareness of tokenisation, clarity on regulations and assessing risks associated in the market with regards to FDI in financial markets.

        Goals

        When effectively implemented, the reform should leverage technologies to modernise financial markets, improve access to capital and grow the economy as well as ensuring that there is protection for investors. This would also attract foreign direct investment while ensuring stability in local financial markets.

        Documents

        References

        Departments / Govt Institutions

        Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

        Summary

        Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview by June 2024 but has not done so. Policy and regulations implications were expected by Dec 2024. Tokenisation could enhance access to funds, improve transparency and accountability and increase FDI. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.

        Canvas not supported.

        Is it working?

        The MTBPS only briefly addresses digital asset regulation, despite recent steps in licensing some crypto asset providers. Investors in fintech and digital assets are likely seeking clearer signals about SA’s stance on the role of crypto assets, tokenisation in financial markets and blockchain use in debt management (as seen in Nigeria and Ghana). A lack of clear, forward-looking policy guidance here creates uncertainty for investors eyeing long-term digital asset growth in SA. This ambiguity could lead to missed opportunities in a fast-growing global market. However, proactive investors might leverage this regulatory gap by engaging with policy stakeholders to drive favourable frameworks, positioning themselves as early movers when comprehensive digital asset regulations eventually materialise.

        Actions

        Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, with SA also evaluating the platform. In SA, tokenisation for debt management is still in the exploratory and research phase, with no direct implementation yet.

        Are there plans?

        Publications of the overview and policy/regulation blueprint are expected during 2024.

        Is it on the agenda?

        The IFWG is evaluating the impact of tokenisation on financial markets. It is improving awareness of tokenisation, clarity on regulations and assessing risks associated in the market with regards to FDI in financial markets.

        Goals

        When effectively implemented, the reform should leverage technologies to modernise financial markets, improve access to capital and grow the economy as well as ensuring that there is protection for investors. This would also attract foreign direct investment while ensuring stability in local financial markets.

        Documents

        References

        Departments / Govt Institutions

        Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

        Summary

        Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview by June 2024 but has not done so. Policy and regulations implications were expected by Dec 2024. Tokenisation could enhance access to funds, improve transparency and accountability and increase FDI. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.

        Canvas not supported.

        Is it working?

        The MTBPS only briefly addresses digital asset regulation, despite recent steps in licensing some crypto asset providers. Investors in fintech and digital assets are likely seeking clearer signals about SA’s stance on the role of crypto assets, tokenisation in financial markets and blockchain use in debt management (as seen in Nigeria and Ghana). A lack of clear, forward-looking policy guidance here creates uncertainty for investors eyeing long-term digital asset growth in SA. This ambiguity could lead to missed opportunities in a fast-growing global market. However, proactive investors might leverage this regulatory gap by engaging with policy stakeholders to drive favourable frameworks, positioning themselves as early movers when comprehensive digital asset regulations eventually materialise.

        Actions

        Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, with SA also evaluating the platform. In SA, tokenisation for debt management is still in the exploratory and research phase, with no direct implementation yet.

        Are there plans?

        Publications of the overview and policy/regulation blueprint are expected during 2024.

        Is it on the agenda?

        The IFWG is evaluating the impact of tokenisation on financial markets. It is improving awareness of tokenisation, clarity on regulations and assessing risks associated in the market with regards to FDI in financial markets.

        Goals

        When effectively implemented, the reform should leverage technologies to modernise financial markets, improve access to capital and grow the economy as well as ensuring that there is protection for investors. This would also attract foreign direct investment while ensuring stability in local financial markets.

        Documents

        References

        Departments / Govt Institutions

        Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

        Summary

        Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview by June 2024 but has not done so. Policy and regulations implications were expected by Dec 2024. Tokenisation could enhance access to funds, improve transparency and accountability and increase FDI. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.

        Canvas not supported.

        Is it working?

        The MTBPS only briefly addresses digital asset regulation, despite recent steps in licensing some crypto asset providers. Investors in fintech and digital assets are likely seeking clearer signals about SA’s stance on the role of crypto assets, tokenisation in financial markets and blockchain use in debt management (as seen in Nigeria and Ghana). A lack of clear, forward-looking policy guidance here creates uncertainty for investors eyeing long-term digital asset growth in SA. This ambiguity could lead to missed opportunities in a fast-growing global market. However, proactive investors might leverage this regulatory gap by engaging with policy stakeholders to drive favourable frameworks, positioning themselves as early movers when comprehensive digital asset regulations eventually materialise.

        Actions

        Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, with SA also evaluating the platform. In SA, tokenisation for debt management is still in the exploratory and research phase, with no direct implementation yet.

        Are there plans?

        Publications of the overview and policy/regulation blueprint are expected during 2024.

        Is it on the agenda?

        The IFWG is evaluating the impact of tokenisation on financial markets. It is improving awareness of tokenisation, clarity on regulations and assessing risks associated in the market with regards to FDI in financial markets.

        Goals

        When effectively implemented, the reform should leverage technologies to modernise financial markets, improve access to capital and grow the economy as well as ensuring that there is protection for investors. This would also attract foreign direct investment while ensuring stability in local financial markets.

        Documents

        References

        Departments / Govt Institutions

        Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

        Summary

        Tokenisation could enhance access to funds, improve transparency and accountability, and increase foreign direct investment. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why South Africa is also evaluating the platform. The MTBPS only briefly addressed digital asset regulation, despite recent steps in licensing some crypto asset providers. Investors in fintech and digital assets are likely seeking clearer signals about South Africa's stance on the role of crypto assets, tokenisation in financial markets and blockchain use in debt management (as seen in Nigeria and Ghana). The FSCA is consulting on further targeted regulation for tokenised traditional financial assets in 2025, recognising both the innovation opportunities and the need for investor protection, secure custody and sound secondary markets. The Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview of tokenisation by June 2024 but has not done so. Policy and regulations implications were expected by December 2024.

        Canvas not supported.

        Is it working?

        A lack of clear, forward-looking policy guidance creates uncertainty for investors eyeing long-term digital asset growth in South Africa. This ambiguity could lead to missed opportunities in a fast-growing global market. However, proactive investors might leverage this regulatory gap by engaging with policy stakeholders to drive favourable frameworks, positioning themselves as early movers when comprehensive digital asset regulations eventually materialise. Tokenisation is a live area of innovation, with FSCA and SARB monitoring developments. Regulatory frameworks are being developed but not yet concluded. The Conduct of Financial Institutions (COFI) Bill is expected to cover this in the future.

        Actions

        The FSCA is consulting on further targeted regulation for tokenised traditional financial assets in 2025. The Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview of tokenisation by June 2024 but has not done so. Policy and regulations implications were expected by December 2024.

        Are there plans?

        A total of 138 institutions have been approved as Crypto Asset Service Providers (CASPs) by the FSCA as of mid-2025, with the sector subject to evolving compliance, capital and consumer protection rules. There is also growing discussion of custody standards and legal enforceability for tokenised assets.

        Is it on the agenda?

        The Intergovernmental Fintech Working Group was established to evaluate the impact of tokenisation on financial markets.

        Goals

        The goal of the reform is to leverage technologies to modernise financial markets, improve access to capital, attract foreign direct investment, protect investors, grow the economy and ensure stability in local financial markets.

        Documents

        References

        Departments / Govt Institutions

        Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

        Summary

        Tokenisation could enhance access to funds, improve transparency and accountability and increase foreign direct investment. South Africa, along with other African countries including Nigeria, Ghana and Kenya, are exploring tokenisation for debt management.
        The MTBPS only briefly addressed digital asset regulation, despite recent steps in licensing some crypto asset providers. Investors in fintech and digital assets are likely seeking clearer signals about South Africa's stance on the role of crypto assets, tokenisation in financial markets and blockchain use in debt management (as seen in Nigeria and Ghana). The FSCA is consulting on further targeted regulation for tokenised traditional financial assets in 2025, recognising both the innovation opportunities and the need for investor protection, secure custody and sound secondary markets. The Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview of tokenisation. SARB, IFWG and NT are investigating tokenisation and DLT (distributed ledger technology) impacts on securities, payments and post-trade processes. By June 2024, Treasury published an overview paper on tokenisation and a policy/regulatory implications discussion paper for tokenised assets and blockchain-based infrastructure. SARB's Project Khokha, exploring tokenised central bank money, continues as a regulatory test bed​.

        Canvas not supported.

        Is it working?

        A lack of clear, forward-looking policy guidance creates uncertainty for investors eyeing long-term digital asset growth in South Africa. This ambiguity could lead to missed opportunities in a fast-growing global market. However, proactive investors might leverage this regulatory gap by engaging with policy stakeholders to drive favourable frameworks, positioning themselves as early movers when comprehensive digital asset regulations eventually materialise. Tokenisation is a live area of innovation, with the FSCA and SARB monitoring developments. Regulatory frameworks are being developed but not yet concluded. The Conduct of Financial Institutions (COFI) Bill is expected to cover this in the future. Consultation and pilot results are informing next policy phase, but industry implementation and clarity on regulatory treatment of security tokens is pending.

        Actions

        The FSCA is consulting on further targeted regulation for tokenised traditional financial assets in 2025. Actions include ongoing review and piloting via SARB’s Project Khokha and IFWG working group, public consultation on future regulatory treatment and their application to securities law.

        Are there plans?

        A total of 138 institutions have been approved as crypto asset service providers (CASPs) by the FSCA as of mid-2025, with the sector subject to evolving compliance, capital and consumer protection rules. There is also growing discussion of custody standards and legal enforceability for tokenised assets. Policy, consultation and regulatory amendment rounds on tokenisation are scheduled through 2025–2026 as per the NT sector roadmap. Industry submissions and technical studies are under way.

        Is it on the agenda?

        The Intergovernmental Fintech Working Group was established to evaluate the impact of tokenisation on financial markets. National Treasury, SARB, FSCA and the IFWG place blockchain/tokenisation on quarterly and annual workplans, with input to policy working group agendas.

        Goals

        The goal of the reform is to leverage technologies to modernise financial markets, improve access to capital, attract foreign direct investment, protect investors, grow the economy and ensure stability in local financial markets.

        Documents

        References

        Departments / Govt Institutions

        Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

        Summary

        The intended deliverable is a formalised policy framework for tokenised financial instruments and DLT‑based market infrastructures, covering questions such as legal status of tokenised securities, treatment of DLT‑based trading/settlement platforms, custody of digital tokens, and interoperability with existing CSDs and payment systems. This would likely be implemented via amendments to the Financial Markets Act, COFI‑based conduct standards and PA/FSCA guidance or licensing conditions. As of early 2026, work is at the conceptual and pilot stage rather than a fully codified regime.

        Canvas not supported.

        Is it working?

        South Africa is cautiously exploratory: regulators are engaging with tokenisation through pilots and sandbox projects and publicly emphasising openness to DLT, but the absence of a detailed regulatory framework may slow large‑scale adoption by mainstream institutions. The key trade‑off is between giving the market space to innovate and providing enough legal certainty on issues like token ownership, settlement finality and custodial responsibility to unlock institutional‑scale tokenisation projects.

        Actions

        To date, authorities have: (i) run several DLT/tokenisation pilots (e.g. Project Khokha and related experiments on wholesale settlement and securities‑market use‑cases); (ii) created the IFWG Innovation Hub and sandbox, which can admit tokenisation‑related projects; and (iii) published high‑level commentary on the need for technology‑neutral, collaborative regulation of tokenisation, without yet issuing binding sector‑wide rules.

        Are there plans?

        Plans include: (i) further pilot projects and regulatory sandboxes involving tokenised assets, including wholesale settlement and capital‑markets use‑cases; (ii) legal‑policy analysis of whether and how tokenised instruments fit within existing definitions of securities, CIS units and derivatives; (iii) coordination between SARB, FSCA and the PA to ensure consistent prudential and conduct treatment of DLT‑based activities; and (iv) eventual publication of guidance or standards clarifying expectations for tokenisation, including governance, cyber‑risk and custody requirements.

        Is it on the agenda?

        Tokenisation is on the agenda of the IFWG, SARB’s Fintech Unit and the FSCA, but is framed as part of medium‑term innovation work rather than an immediate 2026 deliverable. SARB emphasises that legislative reforms in the payments and market‑infrastructure space provide an opportunity to integrate DLT/tokenisation considerations, provided rules remain principle‑based and technology‑neutral.

        Goals

        To develop a policy and regulatory approach to tokenisation and distributed‑ledger technology (DLT) in financial markets that is technology‑neutral, supports innovation and competitiveness, and ensures appropriate safeguards for market integrity, financial stability and consumer protection.

        Documents

        References

        Departments / Govt Institutions

        Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

        Summary

        Tokenisation is a formalised policy framework for tokenised financial instruments and DLT‑based market infrastructures, covering questions such as legal status of tokenised securities, treatment of DLT‑based trading/settlement platforms, custody of digital tokens, and interoperability with existing central securities depositories (CSDs) and payment systems. This would likely be implemented via amendments to the Financial Markets Act, COFI‑based conduct standards and PA/FSCA guidance or licensing conditions. As of early 2026, work is at the conceptual and pilot stage rather than a fully codified regime.

        Canvas not supported.

        Is it working?

        Consultation and pilot results are informing the next policy phase, but industry implementation and clarity on regulatory treatment of security tokens is pending.

        Actions

        Ongoing review and piloting is taking place via SARB’s Project Khokha and the Intergovernmental Fintech Working Group (IFWG)'s Position Paper on Crypto Assets, including public consultation on future regulatory treatment and application to securities law.

        Are there plans?

        Plans include: (i) further pilot projects and regulatory sandboxes involving tokenised assets, including wholesale settlement and capital‑markets use‑cases; (ii) legal‑policy analysis of whether and how tokenised instruments fit within existing definitions of securities, CIS units and derivatives; (iii) coordination between SARB, FSCA and the PA to ensure consistent prudential and conduct treatment of DLT‑based activities; and (iv) eventual publication of guidance or standards clarifying expectations for tokenisation, including governance, cyber‑risk and custody requirements. Policy, consultation and regulatory amendment rounds on tokenisation are scheduled through 2025-2026 as per the NT sector roadmap. Industry submissions and technical studies are under way.

        Is it on the agenda?

        Tokenisation is on the agenda of the IFWG, SARB’s Fintech Unit and the FSCA, but is framed as part of medium‑term innovation rather than an immediate 2026 deliverable. SARB emphasises that legislative reforms in the payments and market‑infrastructure space provide an opportunity to integrate DLT/tokenisation considerations, provided rules remain principle‑based and technology‑neutral. NT, SARB, FSCA and IFWG place blockchain/tokenisation on quarterly and annual workplans, with input to policy working group agendas. Project Khokha technical reports, NT discussion papers and IFWG updates form the main knowledge base for regulatory progress​.

        Goals

        To develop a policy and regulatory approach to tokenisation and distributed‑ledger technology (DLT) in financial markets that is technology‑neutral, supports innovation and competitiveness, and ensures appropriate safeguards for market integrity, financial stability and consumer protection.

        Documents

        References

        Departments / Govt Institutions

        Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)

        Analyst: Tinashe Kambadza
        Status: In progress
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