Capitec’s Cross‑Border Remittance Service Grows to 26 Markets
Less than a year after launching its international money‑transfer capability, Capitec Bank now enables customers to send funds to 26 countries, up from the original seven destinations. The expansion reflects both rising demand from South African clients and the bank’s strategy to serve the nation’s sizable immigrant workforce.
From Seven to Twenty‑Six: What Changed?
Capitec CEO Graham Lee told Business Day that the growth was “driven by demand from our customers and the transactions they need to process.”[1] While the service now reaches nations outside Africa—including Bangladesh, Pakistan and the United Kingdom—the majority of corridors remain intra‑African. The highest volumes flow to Zimbabwe, Malawi, Lesotho and Botswana, with notable activity also recorded in East Africa.
Serving South Africa’s Immigrant Communities
South Africa hosts an estimated 55,000‑300,000 Bangladeshi nationals, many of whom operate small enterprises in township informal economies.[2] Likewise, a substantial Pakistani community runs spaza shops, cell‑phone outlets and works in the medical sector. By adding Bangladesh and Pakistan to its remittance network, Capitec directly addresses the financial needs of these groups, allowing them to support families back home while growing their local businesses.
Why Remittances Matter
Cross‑border remittances are a lifeline for migrant households. According to the FinMark Trust, families across the Southern African Development Community (SADC) rely heavily on income sent from abroad to cover essentials such as food, education and healthcare.[3] Faster, cheaper transfers therefore have a direct impact on household welfare and local economic activity.
Competitive Landscape
The African remittance market has become increasingly competitive, prompting providers to lower fees and speed up settlement times. Players such as WorldRemit, Mukuru, MoneyGram, Nala, Chippa and various mobile‑money operators now vie for market share.[4] Capitec’s entry leverages its existing retail banking footprint—26 million customers, 15 million of whom use the bank’s app—to offer a seamless, low‑cost alternative that integrates with users’ everyday banking experience.
Broader Business Performance
Capitec’s focus on the township economy is yielding measurable results. Its business‑banking segment saw customer numbers rise 71 % to over 450 000 by February, comprising:
- 78 000 entrepreneurs
- 112 000 merchants
- 260 000 small businesses
Advances to commercial banking clients grew 30 % to R30.4 billion, while the private banking, value‑added services and insurance divisions contributed to a record profit of R16.8 billion—up 23 % year‑on‑year.[5] The bank reported a market‑leading return on equity of 31 % and now insures 16 million lives, with the insured sum surpassing R500 billion.
Revenue Mix
For the period under review, Capitec’s revenue breakdown was:
- Retail banking – 41 %
- Insurance – 27 %
- Fintech – 26 %
- Business banking – 5 %
- Avafin – 1 %
Looking Ahead
Capitec’s CEO emphasized that the bank’s 25‑year commitment to “making banking easier, more accessible and affordable” remains the foundation of its strategy.[1] By continuing to expand its cross‑border remittance corridors and deepening its presence in township‑based enterprises, Capitec aims to strengthen financial inclusion for millions of South Africans while supporting the livelihoods of migrant families across Africa and beyond.
[1] Graham Lee, interview with Business Day, 2024.
[2] Statistics South Africa, “Foreign‑born population by country of birth,” 2023.
[3] FinMark Trust, “Remittances in SADC: Impact and Trends,” 2022.
[4] African Development Bank, “Remittance Market Overview,” 2023.
[5] Capitec Bank Annual Report, 2023‑2024.
