Zimbabwe reintroduced exchange controls in the wake of last year’s global financial turmoil. However, the country has indicated that the controls will be reversed as soon as the balance of payments position improves and inflationary pressures subside. Information at our disposal indicates that Zimbabwe will continue to liberalise capital flows gradually.
South Africa’s exchange controls favour investment in the SADC region, as requirements for these investments are less onerous. Although foreign direct investment (FDI) in the SADC region accounts for a relatively small portion of the total planned FDI by South Africans, it is nevertheless growing in importance.