International buyers acquiring a South African business must obtain exchange control approval from the South African Reserve Bank (SARB). This includes reporting the transaction through an authorized dealer, obtaining clearance for foreign investment, and ensuring compliance with repatriation and funding regulations.

For international buyers, dealing with SARB approvals can feel a bit nerve-racking, like waiting for a gate to open before you can move forward. In South Africa, the key mandatory approval usually comes under Exchange Control Regulations, where SARB (via an authorised dealer bank) must approve the inflow of foreign capital, the purchase price structure, and how shares or assets are acquired. This includes registering the foreign investment, approving any share acquisitions by non-residents, and ensuring future profit repatriation, dividends, or exit proceeds will be allowed. If loans, deferred payments, or guarantees are involved, those also need SARB sign-off. While the process can feel slow and paperwork-heavy, getting it right upfront brings peace of mind it protects the buyer’s ability to move money in and out of the country legally and confidently after the deal closes.

International buyers must obtain SARB approval for any foreign direct investment in a South African business, typically through the Exchange Control framework. This includes notifying SARB of funds inflow, equity acquisition, and any dividend repatriation plans. Approval ensures compliance with foreign ownership limits and enables lawful cross-border payments.