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South African Reserve Bank
 
 
     
 
 

Corporates 

  • How much can a South African company invest offshore?

    South African companies (excluding Trusts and Close Corporations) can make bona fide new outward foreign direct investments into companies outside the Common Monetary Area (CMA - Lesotho, Eswatini and Namibia, including South Africa), up to R1 billion per company per calendar year through any Authorised Dealer, i.e. commercial bank.
  • What if the company wants to invest more than R1 billion per calendar year?

    The company’s Authorised Dealer, i.e. commercial bank is required to submit an application to the Financial Surveillance Department of the South African Reserve Bank, for approval. At least 10% of the foreign target entity’s voting rights must be obtained.
  • How much money can a non-resident invest into South Africa and can such funds be re-transferred abroad?

    (i) Non-residents may freely invest in South Africa, provided that suitable documentary evidence is viewed by the Authorised Dealer, i.e. commercial bank concerned, in order to ensure that such transactions are concluded at arm's length, at fair market related prices and are financed in an approved manner.
    (ii) Such financing must be in the form of the introduction of foreign currency, Rand from a Non Resident Rand account in the name of the non-resident (i.e. a Rand account opened by a non-resident at a South African bank) and/or Rand from a Vostro account held in the books of the Authorised Dealer, i.e. commercial bank.
    (iii) Any income earned on the investment may be transferred abroad.
    (iv) Should a non-resident disinvest from this country, the local sale or redemption proceeds of non-resident owned assets in South Africa would be regarded as freely transferable.
  • Can one South African company invoice another South African company in foreign currency?

    Yes. South African residents may invoice each other locally in foreign currency, but settlement must be in Rand.
  • Can a company make an outward loan?

    Yes. An application must be submitted by an Authorised Dealer, i.e. commercial bank, on the company's behalf, to the Financial Surveillance Department of the South African Reserve Bank for approval for local subsidiaries of overseas companies to make loans, only in lieu of dividends, to the holding company.
 
 
 
     
 
 
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