In summary, South Africa has made remarkable strides in liberalising capital controls since 1994, especially on non-resident investors. Exchange control restrictions on foreign investment by private individual residents in South Africa have been progressively relaxed since 1997, such that the current limits are no longer a constraint.
It is estimated that by now less than 3% of individuals are ‘somewhat constrained’ by the remaining exchange controls. Limits on outward foreign direct investments for corporates have also been abolished. And as a step towards prudential regulations, institutional investors are permitted to invest abroad, subject to a foreign exposure asset limit (currently 25% or 35% depending on the type of institutional investor).