South Africa’s central bank plans the biggest overhaul of the nation’s cash system in decades, moving to create a cash-management company, roll out white-label ATMs and tighten oversight of how money circulates to make it cheaper and easier to access.
Cash moving through Africa’s biggest economy tops R180 billion ($10.7 billion), or 2.5% of gross domestic product, and accounts for about two-thirds of all transaction volumes even as digital payments grow. Managing, transporting and securing physical money cost about R90 billion last year, a burden shouldered by consumers. Crime accounts for 13% of that.
The so-called Cash Smart Strategy aims to ensure physical funds remain accessible for low-income and rural communities that have limited digital-payment options and often face costs as much as five times higher than wealthier urban users. The reforms — likely to be the largest change in how cash is circulated since ATMs were introduced more than 40 years ago — are intended to ease that burden.
