South Africa is considering a major overhaul of its exchange control regulations, dating back to 1961, with public comment open at the National Treasury until 17 May. Proposed changes include raising offshore allowances, regulating crypto assets, and easing capital-flow restrictions. The Johannesburg Stock Exchange said the reforms could unlock significant long-term investment and help curb capital outflows.
Independent economist Ulrich Joubert said exchange controls were introduced during a time of economic uncertainty and fears of large-scale capital flight. “There was a specific situation where we had fears that a lot of capital would flow out of the country, so exchange controls were imposed,” he explains.
Joubert added that the system was reinforced during the 1980s under financial sanctions, which severely restricted capital inflows and forced South Africa into repayment arrangements with international lenders.
He stated that conditions began to ease after 1994 when sanctions were lifted, allowing greater access to global financial markets. “We were open once again to international markets, although not to the extent many had hoped,” he said.
Joubert noted that gradual relaxation of controls has since allowed South Africans and major investment funds to diversify internationally, reflecting a significantly changed economic environment.
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