Johannesburg, 13 May 2025
Despite decades of trade blocs and policy frameworks, intra-Africa trade still accounts for a reported18% of total trade, compared to 59% in Asia and 68% in Europe.
One major reason is the result of moving money across borders which remains costly and fragmented.
But that’s starting to change thanks to regional innovations like the Transactions Cleared on an Immediate Basis (TCIB) scheme.
This entails a low-cost, real-time cross-border payments network which was developed by the SADC Banking Association in partnership with BankservAfrica to encourage broader inclusivity in payments.
“Africa’s future lies in its ability to trade seamlessly across borders. That starts with payment systems which are inclusive, affordable and built for the people who need them most,” says Meera Sunker, head of TCIB at BankservAfrica.
Remittance costs in Sub-Saharan Africa remain among the highest in the world. Informal channels, slow clearing times and layered fees continue to affect millions from small-scale traders and gig workers to families relying on remittance support from loved ones across the border.
This is more than just a financial problem. It’s a systemic barrier to inclusion, economic growth and resilience.
In a region where mobile money and digital wallets have gained popularity, the appetite for smarter, faster and more accessible digital payments is clear. Despite the breakthroughs, few cross-border payment innovations have met those needs in a truly integrated, low-cost way.
A key barrier remains the absence of interoperable infrastructure essential for enabling inclusive adoption at scale. Launched in 2021, TCIB is changing the game for retail cross-border payments across the Southern African Development Community.
Built on ISO 20022 messaging and operating everyday all year round, TCIB allows for instant clearing and settlement of low-value transactions between countries.
It’s unique selling point is unlike traditional systems which rely on bilateral agreements or closed loops, TCIB is open to both banks and licensed non-bank payment service providers including mobile money operators; provided they are regulated within a SADC country.
Participation is governed by clear rules and a collaborative governance structure led by BankservAfrica. It’s built for scale, speed and Africa’s most urgent need – inclusion.
Momentum is growing. In March 2025 alone, TCIB processed over 73000 transactions, with a total value topping R317 million. And this isn’t hypothetical success: live corridors are already operating between South Africa, Namibia, Zambia and Zimbabwe.
What’s more, South Africa’s financial regulators are backing it. In November 2024, FNB became the first local bank to integrate with TCIB, enabling low-value instant payments within the Common Monetary Area (CMA) which includes South Africa, Lesotho, Namibia and Eswatini.
In April 2025, the South African Reserve Bank issued a directive that all low-value cross-border payments within the CMA must route through TCIB by April 2027. Regulators in Lesotho, Namibia and Eswatini have since issued aligned directives, signalling a region-wide commitment
“When regulators, banks and fintechs align, real progress happens. TCIB proves what’s possible when infrastructure meets collaboration,” says Sunker.
TCIB sets the groundwork for a more competitive, integrated African economy. In the future, small businesses gain access to formal financial systems. Informal trade becomes traceable. Cross-border e-commerce becomes viable. The cost of doing business across borders falls significantly.
But the technology is just one piece of the puzzle. What’s needed now is continued investment in partnerships and policy alignment.
Public-private collaboration is essential to address systemic barriers like regulatory fragmentation, interoperability gaps, fraud risks and affordability at the last mile.
When countries and their payment systems work together, it becomes easier for people and businesses to connect and grow resilient, thriving economies.
“We cannot build the cross-border payment system of tomorrow in silos. It takes collective action — banks, fintechs, regulators, and regional bodies working in sync. The infrastructure is only as powerful as the ecosystem around it,” says Sunker.
Africa Month reminds us of our shared ambitions for unity, prosperity and progress. The time to scale up a unified regional cross-border payment solutions is now.
“TCIB is more than a system, it serves as testament to what’s possible when we design for inclusion and deliver with purpose,” concludes Sunker.
For more information, visit www.tcib.africa.
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