Ron McGregor's web site - Welcome to South Africa - money.htm
MONEY, MONEY, MONEY!
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Currency: South African Rand (SAR) R1.00 =100 cents
The currency came into being when South Africa switched from the British system of Pounds, shillings and pence in 1961. At inception, the Rand was equivalent to ten shillings, but that was a long time ago. Nowadays it's worth around 7 British pence, or 10 cents of a US Dollar.
The Rand is named after the Witwatersrand, or "Ridge of White Waters" where gold was discovered in 1886. A US Dollar buys you nearly R10.00, while a Pound Sterling gets you around R14.00 (June 2002)
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Swaziland, Lesotho and Namibia
These three countries still use the South African Rand as an everyday currency. They also have their own money. However, their money is exactly equal in value to the Rand - always, so the arithmetic is simple. And if you already have Rand on you, you don't have to do any changing of money when you cross the border.
Swaziland: Emalangeni (singular: one Lilangeni) E1.00 = 100 lisenti
Lesotho: Maloti (singular: one Loti) L1.00 = 100 cents
Namibia: Namibian Dollar N$1.00 = 100 cents.
You may receive change in Rand or in local currency. You may want to keep some of it for its souvenir value (the Swazi E10.00 note with the bare-breasted maidens was very popular with tourists, but unfortunately for the voyeurs, that particular design is no longer in circulation!)
You should avoid accumulating too much of these currencies, as they cannot be exchanged once you leave the country concerned. Any shop or hotel should be happy to exchange them for Rand.
Bureaux de Change are few and far between in these countries, and you will probably have to change travellers' cheques at banks (time consuming) or hotels (shocking exchange rates). For this reason, it is a good idea to use your credit card whenever possible, and have a supply of Rands available.
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Currency: Botswana Pula: P1.00 = 100 cents
The name means "Rain". Much of Botswana is desert, so rain, like money, is worth plenty!
The Botswana Pula was originally equal in value to the Rand, but the Botswana economy has fared much better than its neighbours - better even than South Africa. As a result, the Pula has now been delinked from the SA Rand.
You will find that Rand are accepted, and most traders will know the exchange rate. As with other Southern African currencies, you should not accumulate too many Pula. Change them back into Rand or one of the international currencies before you leave.
The major tourist destinations in Botswana are the game areas in the north, where the hotels and game lodges are about the only places where you can change travellers' cheques. Cash is king in these parts, and Rand is probably best, although you will find the locals reasonably familiar with US Dollars and Pounds Sterling.
At June 2002, the Pula was worth just a bit less than SAR2.00.
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Zimbabwe Dollar: ZW$1.00 =100 cents
The Zimdollar, as this currency is generally known, has been under a lot of pressure due to Zimbabwe's economic problems. Zimbabwe should be a very cheap country to visit. Tourist hotels and operators, however, charge whatever they can persuade you to pay, and will often quote prices in US Dollars. The bargains, therefore, are to be found in the ordinary places frequented by the ordinary people.
An important rule is that visitors MUST settle their hotel bills using either foreign currency or foreign based credit cards. This is to discourage you from buying Zimdollars on the black market and using them to enjoy a cheap holiday.
The obvious answer is to make sure that you don't sign drinks or meals to your hotel account. Purchase some Zimdollars from one of the local bureaux de change (make sure you get the "parallel rate" and pay cash as you go along. And avoid using your credit card until sanity returns.
Zimbabwe has many bureaus de change in the main centres and at Victoria Falls. Banks may also be used, but take longer, and they aren't always open when you need them.
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Rand are very useful in all the Southern African countries, so I strongly recommend Rand traveller's cheques if your bank is able to supply them.
Of the international foreign currencies, US Dollars and Sterling are the best, because exchange rates are readily available for these, and merchants are accustomed to dealing with them. You should also have no problem with D-Marks, Swiss Francs, Dutch Guilders, French Francs, or Canadian and Australian Dollars - but be prepared to wait a little longer for the arithmetic to be done.
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How to carry your funds, and how to cash them
Use credit cards whenever possible (except in Zimbabwe, for the reasons detailed above). The balance of your funds should be carried in travellers' cheques, with a small supply of hard cash for casual purchases.
In South Africa, the best places to cash travellers' cheques or foreign banknotes are branches of Thomas Cook and American Express. Unfortunately, they are represented only in the major cities. However, as most of your expenses can be paid by credit card, you don't need to carry too much in cash.
Regular banks should be avoided. Some of them won't change foreign currency at all, some of them will, but they are not sure how to go about it, all of them take too long, and all of them charge commission on everything. Thomas Cook and Amex do not charge commission on travellers' cheques, but everyone charges a commission on foreign banknotes.
Hotels will exchange travellers' cheques and banknotes, but expect to be ripped off on the rate.
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Use credit cards whenever possible - preferably Visa or Mastercharge. Diner's Club and American Express are less popular.
Our credit card systems are modern and reliable. If you make use of credit cards, you will be debited at the proper exchange rate, free of commission, in your home country, so this is a convenient and safe method of payment.
Informal traders and taxi drivers do not accept credit cards. Tour companies accept them IF you are paying at their offices. However, if you are paying on board the coach, they will not be able to accept cards, so it is always wise to have some real money on hand.
Money can be drawn against certain credit cards, but I do not recommend that you rely on this, as it takes times, and you will have difficulty outside of the major cities.
Money can also be obtained from Automatic Teller Machines (ATM's). This, of course, requires that you have your PIN number available.
I do not recommend that you rely too heavily on ATM machines. We have experienced the following problems:
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Believe it or not, due to a local peculiarity of our local laws, you are not allowed to purchase motor fuel with credit cards. If you are renting a car, make sure that you have sufficient local cash. Petrol pump attendants do not know how to handle foreign currencies. (As mentioned elsewhere, SA Rand traveller's cheques are very convenient, if you are able to obtain them.)
You will have difficulty in using foreign cash or foreign currency traveller's cheques "over the counter" in stores or restaurants. No one ever knows what rate to give. Use a credit card, or make sure that you have enough local cash.
Once you leave South Africa, it is not very easy to exchange surplus Rand, so you should ensure that you visit the bank at the airport and exchange whatever you have left into an international currency.
If you have obtained a tax-refund on your departure, this will also be paid to you in Rand, but you may change it into your preferred currency at the bank in the International Departure terminal (if you don't spend it all in the Duty Free!).
WARNING: Do not under any circumstances get involved in black market currency dealings with strangers who approach you. Apart from the fact that this is illegal and could get you into serious trouble with the authorities, there are a great many con artists around, and many an unwary visitor has been cheated. Be especially careful at Victoria Falls. You have been warned!
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