What Currency Is Used in South Africa?

South Africa uses the South African Rand (ZAR / R). Learn how it works, where it’s accepted, and how to manage your money when visiting or doing business.

What currency is used in South Africa?

If you're planning a safari in Kruger National Park, investing in South African assets, or importing goods from Cape Town, understanding the country’s currency is essential. This guide is written for travellers, international businesses, expats, and global payment providers. It explains what currency is used in South Africa, how it works, and how to manage it effectively.

South Africa’s official currency: the South African Rand (ZAR)

The official currency of South Africa is the South African Rand, abbreviated as ZAR and commonly symbolised as R. The code ZAR comes from the Dutch “Zuid-Afrikaanse Rand” (South African Rand), reflecting the country's colonial history.

  • Currency name: South African Rand

  • Currency code: ZAR

  • Symbol: R

  • Subunit: 1 rand = 100 cents

  • Issued by: South African Reserve Bank (SARB)

The rand is named after the Witwatersrand, the ridge near Johannesburg where much of the country’s gold was first discovered.

Coins and banknotes in circulation

  • Coins: 10c, 20c, 50c, R1, R2, and R5

  • Banknotes: R10, R20, R50, R100, and R200

Banknotes feature iconic South African wildlife and images of Nelson Mandela, making them easily distinguishable. Coins are frequently used for small transactions and public transport fares.

Where the rand is used

The South African rand is the only legal tender in South Africa, used nationwide for all transactions—from hotels, restaurants, and shopping centres to fuel stations and public services.

The rand is also accepted in some neighbouring countries such as:

  • Namibia

  • Lesotho

  • Eswatini (Swaziland)

However, these countries have their own currencies pegged to the rand, and ZAR is accepted mainly due to shared trade and economic ties.

How the rand works

The rand is a free-floating currency, meaning its value is determined by international foreign exchange markets. The South African Reserve Bank sets monetary policy, manages inflation, and regulates financial markets.

As of 2024, the exchange rate typically fluctuates around:

  • R18–R20 per US Dollar

  • R22–R25 per British Pound

Exchange rates vary depending on commodity prices, inflation data, investor sentiment, and global economic trends. South Africa’s economy is heavily influenced by gold, platinum, and other resource exports.

Benefits and considerations of using ZAR

Advantages:

  • Stable for domestic use: Universally accepted across South Africa.

  • Backed by a robust financial system: South Africa has modern banking, mobile payment systems, and strong regulatory institutions.

  • Affordable for many tourists: Favourable exchange rates often make South Africa a cost-effective destination.

Considerations:

  • High volatility: The rand is considered an emerging market currency and is prone to sharp fluctuations.

  • Not widely accepted abroad: You must convert leftover rands before leaving, as few foreign exchange offices hold ZAR.

  • Cash is still important: Especially in rural areas or informal sectors.

Common misconceptions

One myth is that US dollars are widely accepted in South Africa. While dollars may be used in some tourist-heavy spots, ZAR is required for most purchases, and all prices are listed in rand.

Another misunderstanding is that South Africa is cash-only. In fact, contactless card payments and mobile wallets like SnapScan and Zapper are common in cities and towns.

Tips for managing your money in South Africa

  • Withdraw cash at ATMs operated by major banks such as Standard Bank, ABSA, FNB, or Nedbank.

  • Avoid exchanging large amounts at airports, where rates are usually worse.

  • Use a travel card or debit card with no foreign transaction fees for card payments.

  • Decline dynamic currency conversion when using your card—always choose to pay in rand for a better rate.

  • Carry some cash in smaller denominations for tipping, taxis, and local markets.

FAQs

Can I use US dollars or euros in South Africa?
No. Only the South African Rand (ZAR) is accepted for in-person purchases.

Is the rand a stable currency?
Domestically, yes. But on international markets, the rand can be volatile due to its exposure to commodity prices and investor sentiment.

Are cards accepted throughout South Africa?
Yes. Most businesses accept Visa and Mastercard, with contactless and mobile payments increasingly common.

Is tipping expected?
Yes. A 10–15% tip is standard in restaurants. Small tips are also appreciated by drivers, guides, and hotel staff.

Real-life example

A tourist from Canada arrives in Cape Town with C$1,000. They exchange some at the airport but use a travel debit card to withdraw ZAR 9,000 from a local ATM at a better rate. They use card payments for hotels and restaurants and carry cash for taxis, markets, and tips. They choose to pay in ZAR when using their card to avoid inflated conversion fees, keeping their costs predictable and manageable.