When opening a business in South Africa, a key question is the ability to make money transfers in and out of South Africa.
In the first instance companies generally look to transfer money into South Africa as they set up their operations and funding is required.
Once trading and income is coming in, often the opposite service is required as companies look to transfer money back to the UK to the parent company, service fees or dividends.
Money transfers to and from South Africa with your bank
The obvious and well-used solution is the bank the company uses, more often than not simply from a perceived ‘ease of use’ basis.
Money transfers into South Africa are generally considered easier with no exchange control in the UK and can be viewed as a simple case of instructing your bank to do so. Transfers out of South Africa become more complex and require exchange control clearance from the reserve bank. It should be noted:
- The banks will more often than not charge an administration fee, whether you are transferring money in or out South Africa.
- Often when transferring money to South Africa the bank will not give you a rate before the transfer is done. This means you have no idea what value for money you are getting.
- Banks want you to personally come to them. This means queues and inconvenience.
- In transferring money out of South Africa, the process can be complex and expert help is sometimes lacking.
- Exchange rates from banks are typically not competitive.
Selecting the wrong method of money transfer can cost your business thousands. In a recent exercise, we compared a leading South African bank’s rates and charges to our specialist money transfer service. On a transfer out of R2 million rand (approx £133,000), the difference that ended up in their UK bank account was R40, 000 (£2,666).
Our specialised money transfer service offers companies the following:
- The ability to transfer money in and out of South Africa.
- Advice on exchange control issues for money transfers out of South Africa.
- Pre-known and guaranteed exchange rates.
- No fixed charges.
- Personal service – you deal with an exclusive trader.
- Industry-leading exchange rates.
- Free initial consultation and registration.
- Access to our corporate saver account with administration support and competitive interest rates.
