CMA communication from Nedbank Lesotho MD Nkau Matete

There is a regional change scheduled to take place in the cross-border payments arrangement within the Common Monetary Area (CMA) countries, in September 2024. The CMA countries include Eswatini, Lesotho, Namibia, and South Africa.

This change is a result of a decision by the regional bodies responsible for the rules of engagement in the cross-border payments space. As of Monday, 16 September 2024, cross-border payments amongst the CMA countries will be conducted in a different manner.

Currently, there is a basic electronic funds transfer arrangement suitable for payments between these countries. Following this change, there will be a few more details required in order to effect payments electronically between these countries, and so the said payments will be classified under the normal Global Payments category which currently applies when paying from CMA countries to non-CMA countries.

There have been industry pronouncements domestically by the Central Bank of Lesotho, as well as the Bankers Association of Lesotho.

Same communication efforts are happening in other territories as well.

In a bid to unpack the effects of this change further, we have prepared a set of frequently asked questions. Please see below  for reference. Nedbank Lesotho appreciates your continued business, and we are committed to remaining close to you as we prepare for this significant regional change.

Should you have any questions about this change, kindly contact your relationship manager with the green bank.

Key information about CMA cross-border payment changes

• What is CMA?

Common Monetary Area is made up of 4 countries: Eswatini, Lesotho, Namibia and South Africa..

• What is a CMA EFT?

This is an Eletronic Funds Transfer initiated via your Money app, Online Banking or in-branch through the Global Payments desk to a CMA country.

• Will EFTs to account holders in South Africa, Namibia and Eswatini still be possible?

Yes, however there will be additional informaton needed and these would now be paid out as a Global Payment transfer.

• Will I continue to receive EFT payments from a CMA country?

Yes, this will be possible but these will be received as a Global Payment.

• Will I still be able to pay for other CMA countries' debit orders using my Nedbank Lesotho account?

If you have insurance, life cover, furniture or other installments with service providers in South Africa, debit order payments from your Nedbank Lesotho account will no longer be possible once the change has happened.  Foreign entities are advised to open Business accounts with Nedbank Lesotho in order to continue collecting recurring installments. 

• How is the change going to impact domestic transfers?

Domestic payments will be unaffected by the above-mentioned changes. Payments to and from other local banks will happen as usual.