South Africa has unveiled a proposal to dismantle exchange controls dating back as far as 1933, aiming to reclaim its status as Africa’s premier financial gateway. The National Treasury’s plan—which the Johannesburg Stock Exchange estimates could unlock $608 billion in long-term investment—aims to replace blunt capital restrictions with a modern, “positive-bias” approach. Key proposals include allowing asset managers to run non-rand funds from a South African base for the first time, eliminating a structural advantage long enjoyed by rival hubs like Mauritius, Dubai, and Kigali. The overhaul also formally brings crypto assets into the regulatory framework, requiring mandatory declarations and regulated intermediaries for significant transactions. By easing the path for cross-border flows, Pretoria hopes to reduce the outflow of financial firms to rival hubs, positioning the country to capture shifting global capital in an era of heightened geopolitical volatility.
Reuters
