The Treasurer’s Guide to Trade Finance

South Africa

Bank accounts

ƒ Resident and non-resident companies
cannot hold local currency (ZAR) bank
accounts outside South Africa.

ƒ Resident companies can hold foreign
currency bank accounts in South Africa and,
with Reserve Bank approval, outside South

Africa. These accounts are not permitted to

exceed the equivalent of ZAR 5 million.

ƒ Non-resident companies can hold local

currency (ZAR) and foreign currency bank

accounts in South Africa.

South Africa imports exports

Currency and exchange controls

Official currency: South African rand (ZAR).

Exchange rate arrangement: free floating.

ƒ South Africa is a member of the Common
Monetary Area (which also encompasses
Lesotho, Namibia and Swaziland), where the
ZAR is legal tender.

ƒ The South African Reserve Bank
(www.reservebank.co.za) imposes foreign
exchange controls on behalf of the Treasury
(www.treasury.gov.za), to which all Common
Monetary Area (CMA) member states adhere.

ƒ Payments among CMA member states are
exempt from restrictions.

ƒ No restrictions are imposed on the forward
foreign exchange market, with the exception
of limitations imposed on the provision of
cover for non-resident transactions.

ƒ Export proceeds are usually required to be
repatriated within 30 days.

ƒ Resident individuals with overseas income
may hold these funds overseas unless they
derive from merchandise exports.

ƒ Resident companies are usually required to

repatriate overseas earnings within 30 days.

ƒ As of 2011, headquarters of international

companies can raise and deploy capital

offshore without exchange control approval.

ƒ Reserve Bank authorisation is required by

residents wishing to issue/sell shares abroad.

ƒ Residents may lend up to ZAR 1 million per

calendar year to non-residents.

ƒ Prior authorisation is required for financial

loans from residents to non-residents if the

resident individual is loaning over

ZAR 1 million to non-residents in total.

ƒ The maximum individuals can invest abroad

or in a foreign exchange account in South

Africa has been increased by ZAR 1 million

to ZAR 5 million per calendar year.

ƒ Miscellaneous payments of up to

ZAR 100,000 a transaction may be made to

non-residents.

Trade information

Key trading partners

Imports by origin

EU 30.6%

China 14.2%

USA 8.0%

Japan 4.7%

Saudi Arabia 4.5%

Other 38.0%

Source: WTO, September 2012

Exports by destination

EU 22.3%

China 13.4%

USA 9.0%

Japan 8.2%

India 3.6%

Other 43.5%