While there’s public excitement about Johannesburg being smartened up ahead of the 2025 G20 summit set to take place in November, expectations have been tempered by diplomatic tensions, uncertainty about a US boycott and little progress on talks about the debt crisis.
Even so, the summit is set to push concerns that have long plagued Africa’s trade and finance, from friction around cross-border payments to investment flows and digital trade.
Decisions made here might feel far removed from the daily reality of running a business in South Africa, but they could influence how easily companies can move their product, access funds, and expand.
One area where these decisions could have a direct impact is cross-border payments, which is a critical pressure point for exporters and importers who rely on fast, affordable transactions to keep goods moving and cash flowing.
What the G20 changes
Behind the scenes, work has already begun to make it faster and cheaper to move money across borders.
In its latest report, the Financial Stability Board, established by the G20, identified high cost and slow settlement times as major frictions in payments, and set out a multi-year plan to reduce costs and increase speed.
Earlier this year, at a July side event co-hosted by South Africa’s G20 Presidency and the Bank for International Settlements, high costs, weak interoperability and patchy regulation were flagged as issues tormenting cross-border payments in sub-Saharan Africa.
They called for better data, common standards and closer public-private cooperation to bring down remittance costs, build trust, and support formal trade.
The African Continental Free Trade Area is also working to break down tariff and regulatory barriers in African markets, making it easier for smaller businesses to trade internationally and reach more customers.
But for SMEs to benefit fully, the International Institute for Sustainable Development says electronic invoicing, digital identities and digital payments are needed for cross-border data flows.
These developments might seem minor, but they could reduce costs and uncertainty for companies that trade or pay suppliers in foreign currency.
Even so, these gains won’t help businesses that aren’t ready to use them. Many SMEs continue to process international payments the same way they handle routine transactions, which can be slow, opaque, and prone to errors.
This may have worked in the past, but it doesn’t work in a world where businesses need clear pricing, swift settlement and full compliance with complex exchange-control regulations.
Payment friction keeps SMEs local
Many small and medium businesses get stuck when it comes to trading across borders. Three problems come up time and again:
First, hidden costs. When companies rely on traditional banking channels, they often incur hefty exchange rate margins or ‘spreads’ without realizing the impact on the bottom line. Even seemingly small mark-ups on every transfer add up, quietly eroding the profit on a deal.
Second, time. Settlement delays and unclear value dates can sink a shipment or a production run. If you don’t know when the funds will clear, you cannot plan your inventory, freight, or payroll.
Third, compliance. South Africa’s exchange-control regulations are strict, so if you’re not set up properly, the process can be messy and time-consuming. Missing paperwork, submitting the wrong payment details or late Balance of Payments (BoP) submissions can all create extra work - and risk.
There are far better ways to manage international transactions. Separating day-to-day banking from cross-border transactions allows businesses to work with transparent rates, predictable settlement times and clear regulatory steps.
When companies know exactly what a payment costs, when the funds will clear, and that it meets all compliance requirements, it saves time, cuts costs and reduces stress on finance teams.
Dealing with banks can be slow, impersonal and rigid, with little flexibility when problems arise. Simple issues often turn into long, frustrating processes, and it’s difficult to get direct support. For many SMEs, this lack of responsiveness is one of the biggest barriers to trading beyond South Africa’s borders.
A practical way forward
For SMEs trading internationally, foreign exchange can’t be an afterthought – it should be an active part of everyday cash-flow planning. Exchange-rate swings, shifting regulations, and complex paperwork can all affect profitability.
The good news is that technology is levelling the playing field. Fintech innovation is giving SMEs access to integrated tools that combine live exchange rates, automated compliance checks, and transparent fee tracking into one streamlined experience. These platforms typically handle everything from documentation and regulatory approvals to payment tracking and reconciliation.
Ultimately, success in global trade is about ensuring your financial systems can keep up. By partnering with trusted international payment specialists and leveraging fintech solutions, South African SMEs can manage risk more effectively, protect margins, and focus on what matters most: growing their business.
With the G20 push to make payments faster and cheaper, businesses that modernise now will be better placed to trade on stronger terms.
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