Cross-border money transfers are common across Africa, including in Lesotho. Basotho who are working in larger economies, like South Africa, often need to transfer money back home to loved ones – who may live in remote rural areas. What’s the safest, easiest way to do this, and what should you be careful of?

Sending money to Lesotho from South Africa

Getting money from South Africa to Lesotho has never been easier – anyone with a bank account can make digital money transfers. If you’re a Nedbank client, you can send money to anyone in Lesotho registered on MobiMoney using your Nedbank Money app or Online Banking.

However, you have several more options to transfer money quickly to loved ones in Lesotho. Other money transfer services like Western Union, Mukuru, and Mama Money offer cross-border money orders that can be paid out in cash at various partners, including banks and retailers, for a service fee.

Exchange controls and the Common Monetary Area

You don’t have to waste time calculating currency exchange rates when sending money from South Africa to Lesotho. Both countries are members of the Southern African Common Monetary Area (CMA). This financial alliance between South Africa, Namibia, Lesotho, and Eswatini is aimed at boosting trade and growth across all 4 countries. Within the CMA, the Lesotho loti, Namibian dollar and Eswatini lilangeni are valued 1:1 with the South African rand, so the amount you send in rands will be exchanged for an equal amount in loti.

Note, however, that under CMA regulations, banks can no longer process EFTs for cross-border payments. Instead, they use the Swift international payment network. This could delay your cross-border payment in Lesotho by up to 24 hours and could also affect the fees you pay.

Scams and cybercrime

Cross-border payments anywhere can be vulnerable to scams and cybercrime, which have increased alongside the growth in digital transactions and online banking. There are several ways to make sure that your money transfers to Lesotho are safer:

·                Verify the identity of the person receiving your payment
Even if it’s a family member, check that you have the right contact details and updated information, in case scammers have faked an online identity.

·                Use secure payment methods
Use well-known, reputable platforms that encrypt transactions and verify the recipient’s identity, among other security measures.

·                Don’t share personal information
Most transfers won’t need anything from you except the transaction details, so don’t reveal any passwords, identity numbers or other personal information.

·                Look out for red flags
If the person receiving payment is unknown to you, do they seem too keen to get the money? Are they vague about why they need money, or are they asking you to transfer through an unusual method that’s difficult to trace? Trust your instincts – if it seems unsafe, don’t be taken in.

Reputable money transfer services will get your money to where it’s needed fast. But it pays to compare rates and fees if you send money home to Lesotho regularly. There may also be transfer limits on how much you can transfer across the border, so check the rules before you send any money.

Visit Nedbank Lesotho to find out more about how you can send money to a Nedbank Lesotho MobiMoney wallet.