South Africa generally permits full foreign ownership, but there is no single rule for every sector. Banking, insurance, telecommunications, broadcasting, mining, aviation, security, defence, gambling and other regulated activities can involve ownership, control, licensing or public-interest requirements. Public procurement and commercial supply chains can make B-BBEE status economically significant even where it is not a legal condition of company ownership.

Foreign capital should be structured as equity, shareholder debt or third-party finance with corporate, tax and exchange-control advice. Exchange control focuses particularly on cross-border capital, loans, guarantees, security, dividends, royalties, IP payments and restructurings. The authorised dealer should be given complete agreements and evidence when funds enter so the character of the transaction is preserved. Do not assume a payment can be remitted merely because the company has cash and a contract.

B-BBEE is a distinct workstream. Determine whether the generic Codes or a sector code applies and establish the company’s measured-entity category. Ownership is one element alongside management control, skills development, enterprise and supplier development and socioeconomic development under the applicable code. The Department of Trade, Industry and Competition publishes the current codes and sector charters.

A foreign investor should decide whether its objective is legal market access, public procurement eligibility, a customer-required score, a sector-licence condition or a broader transformation strategy. The answer affects ownership and operational design. Fronting or nominal arrangements create serious legal and reputational risk. Multinationals that cannot dispose of equity globally may explore an approved Equity Equivalent Investment Programme, but recognition depends on the formal framework and approval, not an internal re-labelling of ordinary expenditure.

Acquisitions and joint ventures also require competition review. From 1 May 2026, the Competition Commission’s merger thresholds are R1 billion combined South African turnover or assets and R200 million target turnover or assets for the lower threshold, and R9.5 billion combined with R280 million target for the higher threshold. Small mergers may still be called in. Public-interest assessment includes employment, participation by small and medium businesses and firms controlled by historically disadvantaged persons, and spread of ownership.