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21 October 2026
An SFC is a modern formulation to facilitate a financial hub through legal, regulatory and tax arrangements that allow transactions to be conducted in a particular jurisdiction, in this case South Africa, even though the investors or assets are located elsewhere.
National Treasury is advancing the establishment of an SFC to strengthen South Africa's position as a leading African financial and investment hub, as was announced in the Minister of Finance’s 2026 Budget Speech and referred to in Exchange Control Circular No. 3/2026.
The first phase will enable approved institutions to manage qualifying foreign portfolios and related foreign currency investment activities from South Africa. Future phases will consider additional measures to support the development of a competitive international financial centre.
The reform is expected to deepen financial markets, enhance the competitiveness of the financial sector, attract investment management activity in South Africa, support skills depth, and strengthen South Africa's role as a gateway for investment into Africa.
National Treasury and the SARB will continue engaging with industry stakeholders on implementing and supporting regulatory reforms.
Public comment submissions
Interested parties are invited to submit written comments on the draft SFC framework, reflected in the draft Exchange Control Circular attached as Annexure A, to the SARB’s Financial Surveillance Department at SARB‑FinSurvDocuments@resbank.co.za by close of business on 30 November 2026, in the format prescribed in Annexure B.
Following the deadline, the SARB will consider the written comments and make appropriate revisions where necessary.
