Technical Assistance Reports

In an effort to improve cross-border payments and meet the G20 Roadmap target to reduce the global average cost of sending remittances to 3 percent by 2027, this joint IMF-World Bank technical assistance report presents the findings from the August 2024 diagnostic mission to South Africa. The report examines the South Africa-Zimbabwe payments corridor, a critical remittance channel in the SADC region, where remittances are slow and costs remain as high as 12.7 percent. For example, Zimbabwe relies heavily on remittances (9.6 percent of GDP), yet cash dominance—driven by a lack of confidence in the local currency and the inability of migrants to access formal financial services—raises costs and limits digital adoption. Operational challenges, stringent AML/CFT reporting requirements, and limited competition further inflate costs. Recommendations provided by the mission team include, among other things: reducing cash reliance through fast payment systems and interoperability; implementing risk-based AML/CFT measures to improve market access; and enhancing payment infrastructure, interoperability, and regulatory reforms to foster competition, innovation, and financial inclusion.