South Africans get more room to move money offshore — but there’s a catch
South Africans get more room to move money offshore — but there’s a catch
South Africans get more room to move money offshore — but there’s a catch
Gary Oberholzer
South Africans get more room to move money offshore — but there’s a catch
For affluent, globally connected South Africans, the ability to move money seamlessly across borders is no longer a luxury — it’s a necessity. Whether it’s funding offshore investments, maintaining international lifestyles, or supporting family abroad, flexibility matters. And according to Lovemore Ndlovu, recent changes announced in the national budget offer exactly that — albeit with important caveats.
Speaking to Simon Brown standing in on HOT Business with Jeremy Maggs, powered by Standard Bank, Ndlovu unpacked the increase in the Single Discretionary Allowance (SDA), which has doubled from R1 million to R2 million per calendar year. While this may sound like a simple upgrade, its real significance lies in what it enables — and what it doesn’t.
“This is a meaningful adjustment,” Ndlovu explains, noting that the previous limit had remained unchanged since 2015 and had effectively been eroded by inflation.
Listen to the full interview on HOT Business below:
For high-net-worth individuals, the SDA is often used for international travel, offshore purchases, and smaller-scale investments — all without requiring prior approval. The increased threshold now allows for greater freedom in structuring global portfolios or managing cross-border cash flow.
However, the regulatory framework remains firmly in place. The R2 million allowance does not remove compliance obligations — it simply raises the ceiling. Beyond this, taxpayers can still transfer up to R10 million annually, subject to approval from South African Revenue Service and the South African Reserve Bank, with even larger transfers possible if fully motivated and verified.
Crucially, transparency is non-negotiable. Every rand moved offshore must be accounted for, with clear proof of source and tax compliance — a process that both SARS and financial institutions scrutinise closely.
For South Africans with international ambitions, the message is clear: the system is more accommodating than ever — but only for those who are meticulously compliant.
As Ndlovu puts it, success lies in “having your ducks in a row.”
More Posts for Show: HOT Business with Jeremy Maggs
