Now government wants a more modern system with fewer pre approvals, stronger reporting and targeted oversight.
A long criticised rule that pushed South African businesses to register certain foreign currency investment operations in places like Mauritius instead of at home could soon be removed, as the National Treasury moves to modernise outdated exchange control laws. The proposed changes were formally opened for public comment on 17 April 2026 through draft Capital Flow Management Regulations, issued jointly with the South African Reserve Bank. These regulations are intended to replace the Exchange Control Regulations of 1961, some of which were rooted in laws dating back to 1933.
For years, companies wanting to manage funds in dollars or euros often had to domicile those structures offshore, even when decisions were made in Johannesburg. That meant finance jobs, tax revenue, skills and support industries often benefited Mauritius, Dubai, Nairobi and Kigali instead of South Africa. Treasury says the old system was a blunt tool once used to manage many issues at once, including capital flows, tax protection and illicit money movement.
One of the biggest proposed benefits is allowing asset managers to run non rand funds from a South African base, helping Johannesburg compete again as a continental financial hub. The Johannesburg Stock Exchange estimates the broader reforms could help attract up to R10 trillion in investment over time.
Reaction from credible voices has been positive but cautious. Samuel Mokorosi, head of deals and origination at the JSE, said offshore fund rules had been costing South Africa jobs and expertise. Legal specialist Desiree Reddy described the crypto and capital flow reforms as one of the most significant overhauls of the regime. Treasury officials say the shift reflects a more positive approach to cross border investment.
Communities may first feel change within 6 to 18 months through company announcements, hiring and new offices. Larger benefits such as construction work, supplier contracts and sustained jobs may take 2 to 5 years.
People can prepare now by gaining skills in bookkeeping, finance admin, logistics, coding, construction and hospitality, while small businesses should formalise operations and be ready to supply future projects.
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