How much money flows from South Africa to SADC countries? Here’s the breakdown

Migrants from the Southern African Development Community (SADC) have been sending billions back to their countries of origin. The South African Reserve Bank (Sarb) confirmed over R100 billion had been transferred out of South Africa using authorised remittance providers since 2016, but is currently taking public comment on legislation to regulate alternative remittance providers. The facilitation of remittances – cross-border payments made by foreign nationals – is a G20 goal championed by the United Nations’ Sustainable Development Goal (SDG) 10 aimed at reducing global inequality.

Supported by the Sarb, the FinMark Trust (FMT) recently released a report on remittances to and from SADC countries. Outflowing remittances from South Africa have increased from R6 billion in 2016 to R19.3 billion in 2024, with Lesotho, Zimbabwe, Mozambique and Malawi accounting for 90% of all payments. Between 2016 and 2024, R112.6 billion was remitted from South Africa to SADC countries, with Zimbabwe receiving R47.2 billion between 2020 and 2024 alone.

An earlier study showed that 56% of SADC migrants in South Africa had sent money to their home countries in the prior 24 months. Most outflowing SADC payments are made up of small transfers, with R14.2 billion in 2014 being sent in individual payments of less than R1 900. However, there were inflows of remittances from SADC countries totalling R25.6 billion between 2016 and 2024, reflecting a R87 billion discrepancy.

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The number of authorised remittance providers in South Africa increased from 48 in 2021 to 55 in 2024, and figures include mobile wallets, airtime purchases and bill payments. Cash was the preferred payment method, making up 80% to 90% of transactions from South Africa to Zimbabwe and Malawi. “Cash dependency remains embedded in high-volume corridors, with associated costs implicitly factored into first-mile pricing structures,”stated FMT’s report.

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