In this South Africa Money Transfer Guide we will teach you how to maximize the power of your currency and save more when sending money abroad.
For the companies recommended by us in the tables bellow, it doesn’t matter if you are sending money to or from South Africa as they can do both at lower costs and quicker than your local banks.
The Guide’s Topics:
- Cheapest Way to Send Money to South Africa
- Best Companies to Transfer Money from South Africa
- Today’s South African Rand Rates
- Popular Reasons to Move Funds into South Africa
- Regulation and Limitations
Best Company To Send Money To South Africa
* Expected Rates reflect our rate expectations based on our research. We do not guarantee accuracy. For some companies we used a range of rates because they offer wholesale rates for large trades and higher rates for small trades.
Supported Countries & Payment methods
Currencies Direct will provide you a fee free money transfer to South Africa in maximum 48 hours. It’s that easy and that simple. No matter if you send the money from Hong Kong, New Zealand, USA or UK, Currencies Direct can do the job. If you heard of a country more than two times in your life, it’s already a popular country with this company.
With TorFX things are pretty the same – quick delivery time, great team of specialists and zero fee for your transfers. In order to get a quote from them you need to fill a small form on their website, and they will get back to you by phone or phone.
Launched in January 2011, TransferWise is famous for establishing the P2P way of making international money transfers and creating a real competitor for the banks. Because of the P2P technology, money transfers can now be a lot more cheaper, quicker and easier to complete. And this is exactly why more and more people are using their platform every day.
Best Company to Send Money from South Africa
|Min. Transfer: £ / € 100.|
Transfer: Online or by Phone.
Why Them? Over 150,000 Active Clients.
£4.5Bn Transferred Annually. 18 Worldwide Offices.
Supported States & Currencies
Money transfer operators are regulated in South Africa by the South African Reserve Bank (SARB) which gives licenses to operate in the whole country, not like in the USA where they have state by state regulations.
Currencies: Currencies Direct works with 40 different currencies at any give time. But this doesn’t mean that they can make transfers to only 40 countries as some currencies are used in multiple countries. For example, the Euro it’s used in France, Spain, Belgium, Estonia, Greece, Finland and 13 more, and is only 1 out of 40.
Today’s Foreign Exchange Rates for ZAR
The Rand’s behaviour
A weak current account position and above-average inflation maintains a weakening bias for the rand. Cyclically, trends in global commodity and gold prices are crucial given the export profile. The South African current account has been in deficit since 2003 with a peak at 7% of GDP in 2008 and the gap remains around 4% of GDP.
Inflation remains well above the G20 average and, after a 2008 peak above 11%, has never been below 3% compared with an average G20 rate below 3% since 2013.
The combination of current account deficits and higher inflation rates will put underlying downward pressure on the rand with high yields only providing short-term support.
Minerals and precious metals account for around 40% of South African exports with metals and chemicals also big contributors. The trade and rand performance will, therefore, be influenced strongly by trends in global commodity prices. The rand will strengthen when prices are high, vulnerable in recessions.
The rand will also be inversely correlated with global risk conditions; sold when confidence is weak and bought when sentiment is strong.
There is an important correlation with gold as the rand strengthened to 6.50 against the dollar in the third quarter of 2011 when gold peaked above $1,800 per ounce before weakening beyond 17.00 early in 2016 as gold hit lows around $1,050. If gold strengthens, the rand will tend to appreciate as has been the case this year.
Reasons To Send Money To A South African Bank Account
Currency exchange involving the South African Rand are common, and in particular GBP/ZAR and the AUD/ZAR, because there are approximately 500,000 South Africans residing in the UK, and 145,000 South Africans residing in Australia. It makes sense, considering South Africa is part of the commonwealth, and thus it is easy for South Africans to settle in the UK and in other commonwealth countries.
Why do more and more people prefer other commonwealth countries over South Africa? Read more on this Economist article.
In addition, the ZAR is a pivotal currency within Africa. It is heavily used in surrounding countries such as Swaziland, Lesotho, and, of course, Zimbabwe (as Zimbabwean citizens make up for the largest group of immigrants in South Africa).
Real estate: According to Knight Frank’s “Africa Report 2015” the population of Africa will quadruple to over 4 billion by 2100. This will result in a major focus on real estate and high demand for commercial and residential properties in the upcoming decades. South African house prices have risen since the 2008 recession ended, mostly because of the major interest cuts made by the Reserve Bank in response to the global financial crisis.
Tourism: The Broll Report set South Africa as the second most visited country in Africa in 2013 with 9.5 million Tourist Arrivals. It is, therefore, very important to have money in your bank account for your next great trip to South Africa. Using one of our recommended companies is the best way to do this, as they will wire the money into your bank account and you can quickly pay for any excursions during your trip. Most of the companies that offer tours will need a bank-to-bank transfer made upfront.
South Africa has always been a beautiful destination for tourists, mostly because of the almost 2,800 Km of coastline and the huge diversity of fauna and flora. Just two quick facts:
– Table Mountain has over 1,500 species of plants. That’s more than the entire UK.
– Kruger National Park supports the greatest variety of wildlife species on the African continent.
It is no surprise, then, that the tourism industry in South Africa is so big that it supports one in every 12 jobs.
Business: South Africa is a world leader in mining. It is internationally recognised as one of the most abundant resources of minerals like manganese (80% of the world’s known manganese reserves) and chromite (72% of the world’s known reserves). So it is unsurprising that many companies are trying to take a piece of the pie that is mostly managed by the local government.
Thinking Of Relocating To South Africa?
If you consider moving into South Africa and live there as an expat, you may find the following information helpful.
Advantages Of Moving To South Africa:
- Private Security is Sensational: Has the best private security in the world with fast response times and integrated alarm systems.
- Low Cost of Living: 53.73% lower than the USA.
- Great Job Opportunities: South Africa is the hub for international business in the African continent as a whole and has many positions in English, although regional cultural dialects are a plus as well.
Disadvantages Of Moving To South Africa:
- High Crime Rate: 17,068 average murder rate in 2014.
- Terrible Traffic: South Africa is rated as the 20th most congested country in the world.
- Racism: Since Apartheid, South Africa has been recovering from a vast racial and class divide. Thus, it has a very high rate of racial sensitivity that should not be overlooked.
How the money transfer is done
The FX companies operate with large amounts of currencies so they are able to make use of a wholesale rate when buying currencies. This is why they can offer better exchange rates than your local bank and, because most of the processes are made online, the costs are small, which results in smaller fees for customers when they make money transfers to South Africa.
Keep in mind that 90% of FX companies have worldwide offices so you can send money to South Africa from the UK or from the USA as quickly and easily as you can from a closer country.
Another added benefit is the low delivery times (1-2 days) compared to the banks which will clear the payment after 5-7 business days. The process through banks is lengthy but is also slowed down by the fact that the receiving bank will usually keep your money for 1-2 days for “clearing purposes”; meaning they will keep it to gain interest from your money.
Transfer Money to South Africa Needed Details:
- Beneficiary name
- Account Number
- Swift Code or BSB/Routing number
- Bank name
- Identity proof (national ID or driver license)
The actual process of sending money is pretty simple and straightforward:
- Register a free account with the company
- Get a quote from the company
- Add funds in to your account
- Receive the confirmation when the transfer is completed
Our Company Recommendation:
- Send Money to South Africa: Companies that can make money transfers to people in South Africa.
- Send Money from South Africa: Companies that take on South African Clients.
Regulations and taxes when transferring money to and from South Africa
The South African economy is one of the largest and most advanced in Africa. Since Apartheid ended in 1994, it has grown as a major destination for foreign investors, with increasing liberalisation.
Nonetheless, the global economic downturn hit hard, as with other emerging economies, and current regulations are expected to remain.
South Africa uses the South African Rand (ZAR), a fully convertible and free floating currency.
South African Reserve Bank (SARB)
The SARB is the central bank and main financial regulator. They enforce restrictions on money transfers in order to regulate in and outflow of currency, and prevent money laundering. Any trading, foreign or local, must be done through a broker who is registered with the SARB as a Financial Services Provider (FSP).
South African Revenue Services (SARS) clearance is only needed for locals transferring amounts exceeding ZAR1 million.
Non-residents are allowed to retrieve any money transferred into South Africa, if they can provide proof of the original transfer of these funds. It is therefore important to keep copies of SWIFT transfers and bank statements.
Funds accrued by non-residents from property sales can be transferred. Documentation (provided by a registered broker) is necessary.
Taxation on foreign income
South Africans are taxed on any foreign income. Non-residents are taxed on income from a South African source.
Biggest banks in South Africa
- Standard Bank
- FirstRand Bank
- Barclays Africa Group Limited
Make the most out of your money
The best GBP to ZAR exchange rate is around 1 to 20. So for every 1,000 pounds you will receive 20,000 rands (this is almost the average monthly salary in Johannesburg, which is one of the more expensive cities). In other places like eThekwini, Ekurhuleni or Tshwane, this amount will get you even further.
According to Budgetyourtrip.com, the average daily cost per person is 1,200 ZAR. Which, in GBP, translates to just 60 pounds. This means that you can easily plan a vacation on the sunny Cape Town beaches for cheap – less than £1000 for 2 people for a long-weekend with everything included.
Now you have all the tools and information needed to be able to send money to South Africa for cheap. In this article you learned what to do and what companies to use in order to get the most out of your money and, why not, if you want to start your life as a South African expat you now know how to send money from South Africa quick and easy.