Back in October 2004 the government made the most of the opportunity and started by abolishing foreign exchange controls for business investment. That means, for example, that there are now no restrictions on direct investment abroad by South African firms and dividends no longer have to be repatriated. The rules for private individuals were relaxed just a little at first. The government can be expected to lift the remaining restrictions for private individuals in spring 2005, when the tax amnesty for previously undeclared foreign assets expires.
End of foreign exchange restrictions in South Africa – is everything hunky-dory?
The removal of foreign exchange controls is a step in the right direction. The country is dependent on new capital coming in from abroad and is generally likely to benefit from deregulation measures.
Dr. Ingrid Angermann
Tel.: +49.69.2 63 –
[email protected]