The trend of exchange control relaxation continues, with the annual Foreign Investment Allowance for individuals increasing from ZAR4m to ZAR10m from 1 April 2015. The ZAR1m Single Discretionary Allowance will also be permitted to be used for any legal purpose - this former 'travel allowance' was already permitted for investment and now becomes entirely unrestricted for permissible transactions.
Along with the increased individual allowance of ZAR10m, the corporate allowance for Foreign Direct Investment has doubled from ZAR500 000 per annum to ZAR1bn, although whether the conditions and limitations attached to the FDI allowance will also be relaxed remains to be seen. Significantly, there was no mention of any changes to the Intellectual Property (IP) regime or any relaxation of the anti-looping rule. The Reserve Bank has previously announced a re-write of the Exchange Control Manual, in the wake of the Shuttleworth case, and some commentators had expected more dramatic announcements, perhaps even a new amnesty. Any big changes may now be postponed until the draft of the re-write is issued for comment.