With the possibility thaf South Africa could be removed from the SWIFT payment system, at least one cross-border payment solutions provider believes the country needs to diversify if financial infrastructure.
The remarks come amid growing geopolitical tensions and reports of potential sanctions that could impact the nation’s access to the global financial network.
James Booth, head of revenue at Verto, says any threat of SWIFT exclusion is a serious concern for the South African economy. “SWIFT underpins most international trade and finance, and South Africa is a key payments and trade hub for the continent.
“Disconnection would disrupt flows of capital, trade, and remittances,” he adds.
“That said, these risks also highlight why South Africa and the wider region need to diversify settlement options, including regional payment systems and even crypto solutions like stablecoins. These alternatives won’t fully replace SWIFT in the short term, but they can provide important resilience and reduce over-reliance on a single network controlled outside Africa.”
Booth believes the economic fallout from such a move would be significant.
“Cross-border payments would become slower, more expensive, and less reliable, hurting importers, exporters, and investors. We’ve seen this play out with Iran and Russia when they faced partial SWIFT exclusion,” he explains.
While stablecoins and blockchain rails could help mitigate some of the disruption by enabling faster and cheaper settlement, they cannot fully offset the impact.
“They still depend on local on- and off-ramps into fiat currencies, which are tightly regulated and often still linked to the global banking system. So, while stablecoins may cushion some of the blow, they cannot fully offset the disruption that exclusion from SWIFT would create,” he says.
Looking ahead to the African Continental Free-Trade Area (AfCFTA), Booth points to the importance of developing alternative payment systems.
“Alternatives are essential if AfCFTA is going to reach its potential. Today, more than 80% of Africa’s cross-border transactions still settle through banks outside the continent, often adding cost, time, and political risk.”
Booth notes that regional solutions like the Pan-African Payment and Settlement System are a significant step forward, enabling direct settlement of African currencies within the continent.
“Stablecoins can also play a complementary role, offering near-instant settlement in digital dollars,” he adds.
“The challenge will be scaling these solutions responsibly, with regulatory clarity and trusted on-ramps. Done right, a mix of regional infrastructure and digital innovation can safeguard South Africa’s economy and create more self-sufficient payment rails for the continent.”