Critical analysis of regulation of fintech in South Africa: Existing obstacles and opportunities

by | Nov 8, 2025 | JCLA, JCLA V12 SE

Critical analysis of regulation of fintech in South Africa: Existing obstacles and opportunities

Authors: Kola O Odeku, Mudzielwana Takalani

ISSN: 2521-2605
Affiliations: Professor, Faculty of Management and Law, University of Limpopo; Senior Tutor, Faculty of Management and Law, University of Limpopo
Source: Journal of Comparative Law in Africa, Volume 12 Special Edition, p. 184–213
https://doi.org/10.47348/JCLA/v12/2025-SEa7

Abstract

FinTech is constantly evolving and plays a significant role in the financial sector, particularly in banking, where various digital payment technologies are being deployed and used. However, in this regard, it takes two to tango. The banking sector prides itself on using FinTech with smartphones at any location to conduct and transact banking activities of all types. With regard to regulation and accountability, banks are easily identifiable for any infraction or misstep. The article argues that the same accountability regime should be applied and implemented for any FinTech-related outfit’s shortfall or misstep. This is because FinTech also has the potential to encounter various challenges in the financial services it offers and provides to both banks and customers. This article seeks to show that FinTech can be held to account. It addresses challenges that could be encountered as well as the opportunities they present that have the potential to protect consumers and, at the same time, add value to the financial sector in South Africa.

An exploratory analysis of the protection of mobile money consumers under the South African financial consumer protection laws

by | Nov 8, 2025 | JCLA, JCLA V12 SE

An exploratory analysis of the protection of mobile money consumers under the South African financial consumer protection laws

Authors: Luck Mavhuru, Howard Chitimira

ISSN: 2521-2605
Affiliations: BSc Hons Sociology (UZ), LLB (Wits), LLM (UCT), PhD (UCT). Postdoctoral Research Fellow, Faculty of Law, North-West University, South Africa; LLB (Cum Laude), LLM (UFH), LLD (NMMU). Research Director, Research Professor and Professor of Securities and Financial Markets Law, Faculty of Law, North-West University, South Africa
Source: Journal of Comparative Law in Africa, Volume 12 Special Edition, p. 214–233
https://doi.org/10.47348/JCLA/v12/2025-SEa8

Abstract

Consumer protection encompasses laws, regulations, and other measures designed to ensure fair and responsible treatment of financial consumers in their interactions with financial products and services. It establishes clear guidelines for financial firms in their dealings with retail customers. Consumer protection is vital as it ensures that consumers receive fair and transparent treatment, fostering confidence in financial service providers. This is particularly crucial in emerging markets, where there is often a limited history of formal financial service providers. The emphasis on consumer protection in financial services has grown in recent years, enhancing the understanding of the importance of empowering consumers to make informed financial decisions. Financial consumer protection focuses on safeguarding consumers’ financial assets, such as deposits, from fraud, misappropriation, and misuse. In South Africa, consumer protection is governed by the Consumer Protection Act (CPA), which outlines consumer rights and supplier responsibilities. The CPA aims to protect consumer interests, ensuring accessible, transparent, and efficient redress for those who experience abuse or exploitation in the marketplace. Statutes such as the Financial Sector Regulation Act and the Banks Act also contain provisions designed to protect financial consumers. This article evaluates the extent to which these legislative frameworks safeguard users of mobile money services, analysing their effectiveness in addressing the unique risks associated with deposit protection.

Trade-based illicit financial flows and their impact on fair trade: Will the African Continental Free Trade Area succeed?

by | Nov 8, 2025 | JCLA, JCLA V12 SE

Trade-based illicit financial flows and their impact on fair trade: Will the African Continental Free Trade Area succeed?

Author: Tapiwa Victor Warikandwa

ISSN: 2521-2605
Affiliations: LLB, LLM, LLD (UFH). Adjunct Professor, University of Venda, South Africa. Senior Lecturer, Department of Law, University of Botswana
Source: Journal of Comparative Law in Africa, Volume 12 Special Edition, p. 234–266
https://doi.org/10.47348/JCLA/v12/2025-SEa9

Abstract

The African Continental Free Trade Area Agreement and the adoption of the African Continental Free Trade Area (AfCFTA) have brought significant hope of growing foreign direct investment and intra-African trade on the African continent. The AfCFTA sets the basis for sustained belief in African countries’ ability to grow investments, realise sustainable development and eradicate poverty. However, trade-based illicit financial flows (IFFs) could potentially derail any hopes of realising fair trade, sustainable development and ultimately AfCFTA’s success. Trade practices in African countries are often characterised by corruption, trade-based money laundering, bribery, and a general lack of good governance. The AfCFTA Agreement does not address financial crime risks and/or issues. This article discusses how trade-based IFFs will undermine the potential gains of the AfCFTA. It emphasises that a lack of integrity in trade will frustrate the realisation of the AfCFTA Agreement’s key objectives. The article advocates for harmonised AfCFTA rules to curb IFFs to ensure that the AfCFTA succeeds. Stringent trade rules must be adopted to ensure that trade-based IFFs do not undermine foreign direct investments and intra-African trade. The article relies on the Financial Action Task Force guidelines on how to curb trade-based IFFs.

The jurisdiction of competition authorities over Peregrini respondent firms in South African competition law: Revisiting the foreign currency cartel case

by | Nov 8, 2025 | JCLA, JCLA V12 SE

The jurisdiction of competition authorities over Peregrini respondent firms in South African competition law: Revisiting the foreign currency cartel case

Author: Precious Nonhlanhla Ndlovu

ISSN: 2521-2605
Affiliations: LLB (UFH), LLM (UWC), LLD. Senior Lecturer, Mercantile & Labour Law, University of the Western Cape
Source: Journal of Comparative Law in Africa, Volume 12 Special Edition, p. 267–297
https://doi.org/10.47348/JCLA/v12/2025-SEa10

Abstract

As it currently stands, the Competition Act 89 of 1998 only explicitly addresses subject-matter jurisdiction in s 3(1) by stipulating that its provisions apply “to all economic activities within or having an effect within” South Africa. When it comes to personal jurisdiction, the Act is silent. This means that the common law principles on personal jurisdiction must be applied. To that end, the forex cartel litigation served to clarify that personal jurisdiction is a mandatory requirement in South African competition law litigation involving peregrini respondent firms, on par with subject-matter jurisdiction. Because the Competition Act does not address the question of personal jurisdiction, the forex cartel litigation provided an opportunity to develop the common law on personal jurisdiction in competition law proceedings. The outcome of the forex cartel case is that personal jurisdiction can be satisfied if the Competition Commission, as prosecutor, can show that there are connecting factors between the prohibited conduct allegedly committed by peregrini respondents, and the Competition Tribunal, as the court of first instance. Considering the difficulties that the Competition Commission faced in establishing personal jurisdiction utilising common principles of personal jurisdiction in the forex cartel case, the legislature ought to consider amending the Competition Act to explicitly make provision for personal jurisdiction, in the way that subject-matter jurisdiction is statutorily defined. That said, the actual enforcement of these judgments against peregrini firms remains an issue to be determined in terms of the individual jurisdictions where such enforcement is sought.