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

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

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?

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

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.

A Legal Analysis of Local Government’s Housing Roles, Powers, Functions and Responsibilities in South Africa

A Legal Analysis of Local Government’s Housing Roles, Powers, Functions and Responsibilities in South Africa

Author: Paul Mudau

ISSN: 2521-2605
Affiliations: Senior Lecturer, Department of Public, Constitutional and International Law, University of South Africa
Source: Journal of Comparative Law in Africa, Volume 12 Issue 1, p. 1 – 41
https://doi.org/10.47348/JCLA/v12/i1a1

Abstract

This article undertakes a comprehensive legal analysis of local government’s housing roles, powers, functions and responsibilities in South Africa. It outlines the place and role of local government in South Africa’s constitutional framework of multi-level governance and the decentralisation of housing powers to local government. Although the functional area of housing is listed as a ‘concurrent competency’ of the national and provincial spheres of government in terms of Part A of Schedule 4 of the constitution, local government still has significant housing roles and responsibilities emanating from court judgments and national legislation. Primarily, these roles and responsibilities are conferred by the Housing Act 107 of 1997, the Social Housing Act 16 of 2008, and other relevant legislation. Virtually, all municipalities may exercise attendant housing powers. Depending on the ability to demonstrate the capacity to administer one of the housing programmes, municipalities may ultimately be assigned to fulfil the housing functions or powers on behalf of provinces. Using a desktop-based qualitative research approach, the article employs documentary analysis and case law review to critically evaluate the legal framework and its application. Findings highlight gaps in the current legal framework, inadequate resource allocation and capacity constraints hindering local governments’ ability to effectively address housing needs. Recommendations are made for legislative reforms, decentralisation of housing powers, capacity building, and intergovernmental co-ordination to enhance local government’s housing roles, powers, functions and responsibilities. This research contributes to the ongoing debate on local government’s role in addressing South Africa’s housing challenges, providing valuable insights for policymakers, practitioners and scholars.

When the Apex Court’s Decision is not Final: The Power of Apex Courts to Review (Rescind) Their Decisions in Some African Countries

When the Apex Court’s Decision is not Final: The Power of Apex Courts to Review (Rescind) Their Decisions in Some African Countries

When the Apex Court’s Decision is not Final: The Power of Apex Courts to Review (Rescind) Their Decisions in Some African Countries

Author: Jamil Ddamulira Mujuzi

ISSN: 2521-2605
Affiliations: Professor of Law, Faculty of Law, University of the Western Cape, South Africa
Source: Journal of Comparative Law in Africa, Volume 12 Issue 1, p. 42 – 102
https://doi.org/10.47348/JCLA/v12/i1a2

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Jamil Ddamulira Mujuzi
When the Apex Court’s Decision is not Final: The Power of Apex Courts to Review (Rescind) Their Decisions in Some African Countries
Journal of Comparative Law in Africa, Volume 12 Issue 1, p. 42–102
https://doi.org/10.47348/JCLA/v12/i1a2

Abstract

Generally, the decision of the highest/apex court in a country is final. However, courts are staffed by human beings, and it is natural to err. It is not uncommon for apex courts to make mistakes. Legislation and case law from African countries show that courts can ‘escape’ the consequences of their mistake in one of the three ways. First, by departing from a previous erroneous/outdated decision (in a subsequent case). Second, by invoking the ‘slip rule’ to correct clerical or arithmetical errors. Three, which is the focus of this article, by reviewing/rescinding their decisions. In this case, one of the parties to a judgment asks a court to re-open the case he/she has lost and set aside its decision. As the discussion below shows, this remedy is available to, among other things, protect the right of access to justice (courts) to prevent an injustice, or. to protect the integrity of the court. This ultimately contributes to the entrenchment of the rule of law. This article shows that African countries have adopted five different approaches in dealing with the apex courts’ powers to review their decisions. First, the constitutions of some African countries such as Ghana, Eswatini, the Gambia and Namibia expressly allow courts to review their decisions. Second, in some countries such as Uganda, South Africa, Tanzania and Zimbabwe the apex courts’ power/jurisdiction to review their decisions is provided for in their respective rules. Third, in some countries such as Lesotho, Seychelles, Zambia, and Sierra Leone neither the constitutions nor the rules empower apex courts to review their decisions. However, courts have invoked their inherent powers as the basis to review their decisions. Fourth, in Kenya, the Supreme Court’s powers to review its decisions are provided for in legislation and rules of the court. Finally, in Nigeria, the Supreme Court rules prohibit it from reviewing its decisions. However, the Supreme Court held that it has inherent powers to review its decisions. This article shows that, irrespective of the source(s) of the power, case law from all the courts show that there is consensus that apex courts will review their decision(s), whether criminal or civil, if it is in the interests of justice to do so. Different grounds/reasons are invoked to explain why it is in the interests of justice to review a court’s decision. In some countries the list of the grounds of review is closed whereas in others it is open. In some countries, judges often disagree on the issue of whether the apex court’s power to review its decisions is categorised as ‘inherent jurisdiction’ or ‘inherent power.’ In this article, it is argued that in countries where legislation empowers courts to review their decisions, they have jurisdiction. Inherent powers exist in countries where legislation is silent on court’s powers to review their decisions. Although finality of litigation is a very important principle, achieving the ends of justice is more important. Thus, apex courts should not be very conservative when developing principles on reviewing their decisions.