Afriset Fintech

How much capital does a payment switching licence require across African markets?

Across the 5 African markets that publish a minimum-capital figure for a payment switching licence, the floor is set by each market's own statute, in that market's own currency — some as a single amount, some tiered by the services the licence authorizes. Below is the record for each market, verbatim and source-linked. Amounts stay in the statute's own currency; Afriset reports the requirement, not a cross-currency comparison — there is no conversion or ranking here.

Regulators name this licence differently market by market: System Operator in South Africa, Payment System Operator in Uganda, Payment System Operators in Rwanda, Switching Service Provider in Tanzania, plus 3 more in the table below. Operators ask about this licence in other words: payment switch or interoperability. Minimum capital is one requirement among several; what it takes in full, market by market, is linked below.

“Payment switching” here is the normalized activity: Own or operate payment switching, routing, clearing or interoperability infrastructure between payment service providers, issuers, acquirers and schemes. The comparable axis is the minimum-capital floor its licence attaches — structure, tiers and denomination currency differ by market and are shown as published, not converted.

Activity id (as used by the Afriset MCP): fintech:SWITCHING

Minimum capital, market by market

Market Licence category Minimum capital (as published) Source Source date
Ethiopia Payment System Operator (Switch Operator)
ETB 300 million (three hundred million Birr) for a national switch operator; ETB 40 million (forty million Birr) for a switch operator (the sum of the relevant tiers if the applicant operates two or more systems).
Verbatim
"An applicant intending to be licensed as payment system operator shall have a paid up capital of not less than: a) ETB 300 million (three hundred million Birr) if it is the national switch operator; b) ETB 40 million (forty million Birr) if it is a switch operator; … f) the sum of a paid up capital stated hereinabove under each operator if an applicant intends to be licensed to operate two or more of the payment systems."
Licensing and Authorization of Payment System Operators Directive No. ONPS/02/2020 (operative PSO base) 2020
Kenya To own, possess, operate, manage or control infrastructure for the provision of payment services Not published. No separate statutory minimum for a switch/infrastructure operator. The NPS Act 2011 states no capital figure; the NPS Regulations 2014 First Schedule has no switching/infrastructure row — the listed categories are ERPSP, Designated Payment Instrument Issuer (KES 50M), E-money Issuer, Small E-money Issuer. Infrastructure/switching is authorised under the general PSP regime (Reg 4) with no dedicated capital line. National Payment System Act No. 39 of 2011 2023-09-15
Nigeria Switching & Processing Licence Category
₦2,000,000,000 shareholders' funds unimpaired by losses + refundable escrow ₦2bn
Verbatim
"N2,000,000,000.00 (shareholders' funds unimpaired by losses) … Escrow of refundable N2bn into CBN PSP Share Capital Deposit Account No. 1000014009"
CBN, Approved New Licence Categorization Requirements (Consolidated – 2021) — the per-category eligibility/capital/fee sheets giving effect to the circular "New Licence Categorizations for the Nigerian Payments System" (ref BPSD, issued 9 Dec 2020). 2020-12-09
Rwanda Payment System Operators
FRW 500,000,000 (a designated payment system under Reg 75/2023 Art 18 — higher than any Reg 74 PSP category)
Verbatim
"The designated payment system holds a minimum paid up cash capital of not less than FRW 500,000,000."
Regulation N° 75/2023 of 18/09/2023 on payment systems (same Gazette n° 38 Bis) — for the switch/PSO capital 2023-09-25
South Africa System Operator
None in the Directive. Authorisation is criteria-based (PASA/PA criteria, Bank-approved), not capital-gated.
Verbatim
"meet the criteria as recommended by the relevant payment system management body, which criteria have been approved by the Bank in terms of section 4(2)(c)(i) of the NPS Act."
NPS Act 78 of 1998 — Directive No. 2 of 2007 (System Operators), GN 1111, Gazette 30261, 6 Sep 2007 2007-09-06
Tanzania Switching Service Provider Not published. The Payment Systems (Licensing and Approval) Regulations 2015 require documentary evidence of paid-up capital (reg 6(h)) but publish no numeric minimum-capital threshold for the switching/data-management category - the First Schedule sets licence fees only. The Payment Systems (Licensing and Approval) Regulations, 2015 (GN under the NPS Act 2015; s.56) not dated
Uganda Payment System Operator
Clearing systems or switches: UGX 500,000,000. (Other PSO classes: settlement systems 250m; third-party systems 100m; funds-transfer large 1bn / medium 500m / small 100m.)
Verbatim
"(a) funds transfer systems (i) large funds transfer systems whose transaction value exceeds one hundred billion shillings per month. … 1,000,000,000/= (ii) medium funds transfer systems whose transaction value exceeds one billion shillings per month and does not exceed one hundred billion shillings per month. … 500,000,000/= (iii) small funds transfer systems whose transaction value does not exceed one billion shillings per month. … 100,000,000/= … (b) clearing systems or switches — 500,000,000/= … (c) settlement systems — 250,000,000/= … (d) third party systems — 100,000,000/="
National Payment Systems Regulations, 2021 (S.I. 2021 No. 18) 2021-02-26
Zambia Payment System Operator Not published. No published number. Delegated to BoZ (s.87); no ZMW minimum in the Act or the designation requirements. National Payment System Act, 2026 (Act No. 5 of 2026) — enabling Act, categories + delegation 2026-04-08

Each figure is the minimum capital as published in the cited instrument, in the statute's own currency — not legal or compliance advice, and not converted or ranked across currencies. A tiered floor is shown in full, never reduced to one tier. Where a figure is located but not yet verified, we show that it exists without publishing it. Verify current requirements with the regulator. Rules, not rates: amounts are the published requirement, never an exchange rate.

Maintained: this official source is re-checked on a weekly schedule — last checked 2026-08-04 · unchanged since the previous check.

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