Understanding the last mile in cross-border money transfers from South Africa to Zambia

This focus note seeks to answer the question of how easy it is for a Zambian beneficiary of a remittance, sent from Johannesburg, South Africa to cash out his/her money in Lusaka, Zambia and how much will it cost him/her. The study’s findings are that whilst issues have been raised regarding “hidden costs” and losses to the beneficiary through the application of exchange rate margins, it is clear that the first mile (the South African side of the transaction) is the main cost driver and that the legislative and regulatory framework that governs the remittance spacein Zambia is sound, predictable, non-discriminatory and proportionate.