South Africa is preparing the most significant overhaul of its cash ecosystem in years after the central bank found that consumers shoulder nearly $5.5 billion (R90 billion) a year in the cost of using physical money, prompting plans for sweeping reforms aimed at making cash cheaper, more accessible and more resilient.
In a new position paper, the South African Reserve Bank (SARB) said cash remains a cornerstone of the country’s economy despite the rapid growth of digital payments.
However, it warned that the current system is becoming increasingly expensive, fragmented and vulnerable, particularly for low-income households and rural communities that continue to depend heavily on cash.
The proposed reforms form part of what the central bank calls its Cash Smart Strategy, a long-term plan to modernise South Africa’s cash infrastructure while preserving cash as an essential public service rather than allowing market forces alone to determine its future.
The hidden cost of cash
