Lesetja Kganyago: Paradigm shift - the future of payments in South Africa

Opening address by Mr Lesetja Kganyago, Governor of the South African Reserve Bank, at the 2024 Payments Conference, Johannesburg, 2 October 2024. 

The views expressed in this speech are those of the speaker and not the view of the BIS.

Good day and welcome to the 2024 Payments Conference.

To set the stage for our discussion over the next two days, first, I will briefly reflect on the past to assess our progress in modernising payments. Then, I will turn to the present, where much of society still relies heavily on central bank money – or cash – even as peer countries adopt digital payments at scale. Finally, looking ahead, I will discuss our efforts to modernise the payments ecosystem and our strong preference, as the custodian of the national payment system, to reduce reliance on cash.

I will start with the history.

At one time, South Africa was a global leader in payments. For instance, we were early adopters of one of the world's first fast-payment systems, real-time clearing, in 2006. The introduction of the DebiCheck system for verifying debit orders in 2019 was also a world first. But the frontier keeps shifting. As our Vision 2025 strategy document set out, structural changes in payment systems are underway, and it is therefore vital for South Africa's competitiveness that we stay ahead of these trends. This is also an area where we can make real contributions to financial inclusion and growth.