No data available for the deliverable: Capital flows management framework review; fostering business growth and promoting investment in the region.
No data available for the deliverable: Capital flows management framework review; fostering business growth and promoting investment in the region.
No data available for the deliverable: Capital flows management framework review; fostering business growth and promoting investment in the region.
No data available for the deliverable: Capital flows management framework review; fostering business growth and promoting investment in the region.
No data available for the deliverable: Capital flows management framework review; fostering business growth and promoting investment in the region.
No data available for the deliverable: Capital flows management framework review; fostering business growth and promoting investment in the region.
No data available for the deliverable: Capital flows management framework review; fostering business growth and promoting investment in the region.
No data available for the deliverable: Capital flows management framework review; fostering business growth and promoting investment in the region.
Summary
South Africa's 1961 Exchange Control Regulations govern how money can move in and out of the country. Designed during the apartheid era to prevent capital flight, the framework is based on a "negative bias" (everything is prohibited unless specifically permitted) which imposes significant administrative burdens on businesses, investors and institutions. Major institutional investors such as pension funds and asset managers face complex approval processes and restrictions that push them to use offshore structures (in Mauritius, Ireland, Dubai and similar jurisdictions) to manage international investments. The 2026 Budget announced a comprehensive overhaul, with the Draft Capital Flow Management Regulations 2026 published on 17 April 2026, proposing to replace the 1961 regulations with a "positive bias" framework.
Draft Capital Flow Management Regulations 2026 were published in the Government Gazette on 17 April 2026, after Finance Minister Godongwana announced the reform in the 2026 Budget Speech. These regulations propose to replace the Exchange Control Regulations of 1961 in their entirety. Key changes: a "positive bias" approach where most transactions are permitted by default; fewer pre-approvals required; focus on reporting of high-risk transactions; formal incorporation of crypto assets into the exchange control framework; individual annual discretionary allowance doubled from R1m to R2m; miscellaneous card transaction limit raised from R50,000 to R100,000 per transaction. Public comment deadline: 10 June 2026. Final regulations to be promulgated after NT and SARB review all submissions.
Is it working?
The existing framework is functioning and being complied with. The key question is how smoothly the transition from the 1961 regulations to the new Capital Flow Management framework will occur, in particular whether the exemptions (not yet published) will provide the operational continuity that businesses and investors need during the changeover.
Olano Makhubela, SARB's head of financial surveillance, confirmed to Operation Phumelela (SA's Financial Sector Competitiveness Taskforce, established in 2024 to enhance the country’s position as a leading international financial centre and gateway for investment into Africa), that the 45% institutional cap is a "macro-prudential measure managing sudden-stop risk" rather than an exchange control per se, and is globally well-accepted. SA reserves (as at June 2026) are about $74bn.
Actions
Authorised dealers (banks) and FSCA oversight are facilitating regulatory compliance and reporting improvements under the existing framework. The Draft Capital Flow Management Regulations represent the transition to the next framework.
Are there plans?
Annual review of exposure limits and foreign trade support mechanisms is ongoing. Final new regulations to be promulgated after the 10 June 2026 comment deadline. Exemptions are to be published separately. Capital flow management is fully integrated into FSCA and SARB annual strategic reviews. The Draft Capital Flow Management Regulations 2026 will replace the 1961 Exchange Control Regulations on promulgation. Exemptions are to be published separately after the public comment process. The 45% institutional cap is globally well accepted as a macro-prudential measure.
Is it on the agenda?
Yes. National Treasury confirms existing limits and reporting rules remain effective. The FSCA monitors market adaptation as part of its strategic review cycle.
Goals
To maintain and operate the existing capital flow management framework (including institutional foreign exposure limits and commodity hedging rules) while the new Draft Capital Flow Management Regulations 2026 progress through public consultation.
Documents
Summary
South Africa's 1961 Exchange Control Regulations govern how money can move in and out of the country. Designed during the apartheid era to prevent capital flight, the framework is based on a "negative bias" (everything is prohibited unless specifically permitted), which imposes significant administrative burdens on businesses, investors and institutions. Major institutional investors such as pension funds and asset managers face complex approval processes and restrictions that push them to use offshore structures (in Mauritius, Ireland, Dubai and similar jurisdictions) to manage international investments. The 2026 Budget announced a comprehensive overhaul, with the Draft Capital Flow Management Regulations 2026 published on 17 April 2026, proposing to replace the 1961 regulations with a "positive bias" framework.
Q3-26 was a highly active quarter for capital-flow reform, even though the core Capital Flow Management Regulations remained unpromulgated. National Treasury and SARB published the complementary draft Crypto Assets Manual (3 August 2026) extending the framework specifically to cross-border crypto activity, while the underlying draft Regulations (first published 17 April 2026) had already had their comment deadline revised once (from 18 May 2026) prior to Q3. The draft Capital Flow Management Regulations 2026, intended to replace the Exchange Control Regulations of 1961, remained in consultation/drafting status through Q3, with the complementary draft Crypto Assets Manual adding a second, more granular consultation track (closing 30 September 2026), specifically addressing cross-border crypto reporting triggers.
Is it working?
While the core Regulations themselves were not finalised in Q3, the publication of the complementary Crypto Assets Manual represents substantive forward progress. This resolves a significant definitional gap (crypto treatment) that had been a specific source of public concern since the original April 2026 draft. This is meaningful policy development work completed within the quarter, even though final promulgation of the overall framework remains pending.
Actions
National Treasury and SARB published the draft Crypto Assets Manual for cross-border activities on 3 August 2026, for comment by 30 September 2026, defining precisely when crypto movement across borders becomes a reportable event to FinSurv. This was underpinned by the original draft Capital Flow Management Regulations (17 April 2026) and the 15 May 2026 joint statement responding to public concerns.
Are there plans?
Yes, following the 15 May 2026 joint Treasury/SARB statement addressing public concerns about crypto treatment, the draft Manual was as a complementary instrument, delivered on 3 August 2026 within Q3.
Is it on the agenda?
Yes. National Treasury confirms existing limits and reporting rules remain effective. The FSCA monitors market adaptation as part of its strategic review cycle. The full capital-flow reform now comprises two linked consultation tracks: the core Regulations (Currency and Exchanges Act basis) and the Crypto Assets Manual (crypto-specific reporting), both to be finalised together.
Goals
To maintain and operate the existing capital flow management framework (including institutional foreign exposure limits and commodity hedging rules) while the new Draft Capital Flow Management Regulations 2026 progress through public consultation.
Documents
Summary
South Africa's 1961 Exchange Control Regulations govern how money can move in and out of the country. Designed during the apartheid era to prevent capital flight, the framework is based on a "negative bias" (everything is prohibited unless specifically permitted), which imposes significant administrative burdens on businesses, investors and institutions. Major institutional investors such as pension funds and asset managers face complex approval processes and restrictions that push them to use offshore structures (in Mauritius, Ireland, Dubai and similar jurisdictions) to manage international investments. The 2026 Budget announced a comprehensive overhaul, with the Draft Capital Flow Management Regulations 2026 published on 17 April 2026, proposing to replace the 1961 regulations with a "positive bias" framework.
Q3-26 was a highly active quarter for capital-flow reform, even though the core Capital Flow Management Regulations remained unpromulgated. National Treasury and SARB published the complementary draft Crypto Assets Manual (3 August 2026) extending the framework specifically to cross-border crypto activity, while the underlying draft Regulations (first published 17 April 2026) had already had their comment deadline revised once (from 18 May 2026) prior to Q3. The draft Capital Flow Management Regulations 2026, intended to replace the Exchange Control Regulations of 1961, remained in consultation/drafting status through Q3, with the complementary draft Crypto Assets Manual adding a second, more granular consultation track (closing 30 September 2026), specifically addressing cross-border crypto reporting triggers.
Is it working?
While the core Regulations themselves were not finalised in Q3, the publication of the complementary Crypto Assets Manual represents substantive forward progress. This resolves a significant definitional gap (crypto treatment) that had been a specific source of public concern since the original April 2026 draft. This is meaningful policy development work completed within the quarter, even though final promulgation of the overall framework remains pending.
Actions
National Treasury and SARB published the draft Crypto Assets Manual for cross-border activities on 3 August 2026, for comment by 30 September 2026, defining precisely when crypto movement across borders becomes a reportable event to FinSurv. This was underpinned by the original draft Capital Flow Management Regulations (17 April 2026) and the 15 May 2026 joint statement responding to public concerns.
Are there plans?
Yes, following the 15 May 2026 joint Treasury/SARB statement addressing public concerns about crypto treatment, the draft Manual was as a complementary instrument, delivered on 3 August 2026 within Q3.
Is it on the agenda?
Yes. National Treasury confirms existing limits and reporting rules remain effective. The FSCA monitors market adaptation as part of its strategic review cycle. The full capital-flow reform now comprises two linked consultation tracks: the core Regulations (Currency and Exchanges Act basis) and the Crypto Assets Manual (crypto-specific reporting), both to be finalised together.
Goals
To maintain and operate the existing capital flow management framework (including institutional foreign exposure limits and commodity hedging rules) while the new Draft Capital Flow Management Regulations 2026 progress through public consultation.
Documents