South Africans could invest more than R5m overseas a year as long as they adhere to "strict criteria" set by Reserve Bank for disclosure. The Treasury said limits for individuals on alimony; wedding and travel allowances would be done away with. In recent years, South Africa has raised the amount of money domestic institutions such as retirement funds are allowed to invest abroad.
"The annual R4m foreign investment allowance plus the R1m current single discretionary allowance will be consolidated into one R5m foreign investment allowance per year," the Treasury said. The changes mark the latest step by the government to move away from stringent controls over foreign exchange flows out of the country. The South African Reserve Bank will release further details within a month, the Treasury said.
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