Regulators outlined an initial phase that would allow approved institutions to run eligible foreign mandates from South Africa and do the currency operations locally. Qualifying private equity fund managers could participate too.
The intent is to let managers oversee offshore assets from home without being constrained by their own offshore limits. Investors would still be bound by their applicable prudential foreign investment caps. The plan fits into a larger effort to strengthen South Africa's standing as the continent's primary financial center.
The South African Reserve Bank published the draft framework on Wednesday, advancing an idea the National Treasury flagged in February. Public comments are open until Nov. 30.
Operation Phumelela, a public private initiative created in 2024 that includes National Treasury officials and finance industry leaders, estimates roughly 10 trillion rand ($610 billion) in South African savings is managed abroad. Its February view when the budget first announced the plan: "Such reforms are a logical end point to improving competitiveness and match the capabilities of Mauritius, Dubai and latterly Rwanda, though we anticipate these will take longer to consolidate."
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The framework may shift more investment management activity back to South Africa even if the underlying assets remain offshore.
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