Why opening corridors is key for Africa’s payments future

Meera Sunker - Head TCIB.

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As economies become increasingly interconnected, Africa’s path to sustainable growth lies in deeper regional integration.

Nowhere is this more pressing than in the Southern African Development Community (SADC), where bold initiatives and policy reforms are breaking down long-standing barriers and fostering more balanced opportunities across member countries in efforts to promote greater intra-regional trade and pave the way for a more competitive, inclusive regional economy.

This is where payment corridors, serving as a cross-border payment route between two countries, act as powerful drivers of change for economies. Easing payments between SADC countries not only enables faster, more affordable cross-border transactions but also promotes trade, supports remittance flows, and advances financial inclusion across the region.

Expanding these networks makes transactions faster and more affordable, while strengthening ties between countries and creating opportunities for trade and households.

“Each unlocked corridor strengthens cross-border payments by expanding the value of the network,” says Meera Sunker, Head of Transactions Cleared on an Immediate Basis (TCIB) at PayInc, formerly BankservAfrica. She explains: “The more countries connected, the greater the benefits for every payment service provider, economies, businesses and individuals.”

The TCIB Cross-Border Payments Scheme is one of the few regional retail cross-border payment schemes live globally and aligned with the G20’s key principles of affordability, security and transparency. 

The scheme is driving the opening of payment corridors across the SADC region. As a centralised scalable, instant, low-cost digital payments infrastructure, it is built to seamlessly integrate, ensuring that cross-border transactions can accelerate regional economic growth, and open markets.

Several initiatives, including the African Continental Free Trade Area, are underway with payment corridors positioned to address several challenges that include high transaction costs, outdated infrastructure to lack of regulatory alignment.

By connecting economies, people, and businesses across borders, payment corridors are more than moving money.

“For small businesses, the difference is transformational. When making or receiving payments across borders becomes as simple as processing a domestic transaction, barriers fall away,” explains Sunker. “Connected payment corridors provides the foundational infrastructure that supports the free flow of goods, services, and money across the continent.”

For millions of migrant workers who depend on remittances to support their families, reliance on informal channels has cut into the value of their hard-earned incomes.

“By opening more payments corridors and offering affordable digital channels, payment corridors make it possible to send money securely and at a lower cost,” says Sunker.

Expanded corridors also drives innovation and competitiveness. “With more markets connected to the TCIB platform, banks and other licenced players gain the foundation to innovate and enable new cross-border products and services that drive economic activity and inclusion across the region,” adds Sunker.

By connecting multiple countries through TCIB, SADC strengthens its position as an attractive hub for investment, e-commerce, and broader digital transformation. Crucially, these corridors reduce costs, ensuring that everyday payments are faster, cheaper, and better suited to meet the needs of the SADC market.

Since inception to date, TCIB has processed 822 687 transactions worth R3.5 billion across its active corridors in South Africa, Namibia, Zambia, Zimbabwe, Eswatini and Lesotho – with further corridor expansion plans on the horizon. 

Additionally, the TCIB platform has been adopted for Common Monetary Area payments, backed by regulatory directives across the Central Banks of South Africa, Eswatini, Namibia and Lesotho. 

“Expanding the network of payment corridors is a catalyst for trade, financial inclusion, and regional growth. Each new corridor strengthens the value of the entire network, deepening regional integration and building a more inclusive payments ecosystem that connects innovation and possibility,” says Sunker. “We are working closely with regional regulators, banks, and licensed participants to make this a reality. This October, TCIB will be announcing the activation of new corridors in the SADC region - watch this space.”