Civil rights organisation Free SA has launched a campaign opposing the Draft Capital Flow Management Regulations, 2026, warning that the proposed regulations threaten investment, economic growth, innovation, and the financial freedom of South Africans.
The draft regulations significantly expand government control over how citizens and businesses move, invest, store, and use capital, including foreign currency, offshore investments, and crypto assets. While government argues that the measures are aimed at combating illicit financial flows and aligning South Africa with international standards, Free SA believes the regulations go far beyond what is necessary and risk damaging the country’s already fragile economy.
“South Africa does not need more bureaucracy, more permissions, and more restrictions on lawful economic activity,” said Gideon Joubert, spokesperson for Free SA. “At a time when the country desperately needs investment, entrepreneurship, and job creation, government is proposing a system that increases uncertainty and pushes businesses, skilled professionals, and capital offshore.”
Free SA has raised several concerns regarding the draft regulations, including:
- Excessive discretionary powers granted to the National Treasury and authorised officials;
- Broad powers to freeze, attach, or restrict assets based on suspicion rather than criminal conviction;
- Increased barriers to cross-border investment and capital formation;
- Heavy compliance burdens on businesses, startups, exporters, and fintech innovators;
- Greater regulatory uncertainty for crypto assets and digital innovation.
According to Free SA, the proposed framework risks undermining constitutional rights to property, privacy, and economic freedom while creating an environment that discourages investment and entrepreneurship.
“Economic growth cannot be achieved through tighter control over citizens’ finances,” Joubert added. “Prosperity requires openness, policy certainty, and trust in people to participate freely in the economy. South Africans should not need government permission to engage in legitimate financial activity or to compete globally.”
Free SA is calling on National Treasury to narrow the scope of the regulations to focus specifically on genuine criminal activity and to ensure that anti-money-laundering measures remain proportionate and targeted.
The organisation further urges government to:
- Reduce unnecessary approval requirements and administrative discretion;
- Introduce clear and objective rules that provide certainty for investors and businesses;
- Protect constitutional rights and safeguards against abuse of enforcement powers;
- Promote innovation, entrepreneurship, and global competitiveness instead of restricting them.
As part of its campaign, Free SA is encouraging South Africans to submit public comments opposing excessive financial regulation and unnecessary capital controls before the public participation deadline.
“Public participation is a constitutional right, and every submission matters,” said Joubert. “Government must hear clearly that South Africans want policies that encourage investment, economic freedom, and growth, not more barriers to prosperity.”
Free SA maintains that South Africa cannot regulate its way to economic success and that sustainable growth depends on creating an environment where citizens and businesses are trusted to innovate, invest, and trade freely.