South Africa’s National Treasury and bank executives have raised concerns about the risk of the country being cut off from Swift, the global interbank payment processing system, due to potential US sanctions.
According to SowetanLIVE, Finance Minister Enoch Godongwana attended a Banking Association SA board of directors meeting recently, where the issue of possible sanctions was discussed.
It noted that Treasury was engaging with its US counterparts to mitigate tensions although it viewed local banks’ compliance systems as a first line of defence.
According to The Sowetan, the concerns arise from the proposed US-South Africa Bilateral Relations Review Act of 2025 (H.R. 2633), introduced by Republican Ronny Jackson.
The legislation accuses South Africa of aligning with US adversaries, including China, Russia and Iran, and could lead to sanctions targeting South African officials and financial systems.
Banning South Africa from using the payment system of the Society for Worldwide Interbank Financial Telecommunication could severely disrupt the country’s $400 billion annual trade, destabilise the local banking sector and negatively affect investor confidence.
Jackson's Bill was introduced in retaliation to South Africa forming alliances with Russia and China, and he also accused it of supporting Hamas in the war against Israel in Gaza.
Godongwana's Chief of Staff, Mfuneko Toyana, had declined to comment on the matter.
Russia was removed from the Swift payments system when the US imposed sanctions against it.
