To Investors,
Over this past week, there should have been more coverage about the fact that South Africa was removed from the Financial Action Task Force (FATF) grey list.
If you remember, the grey list is basically the world’s “watch list” for countries whose financial systems need tighter controls to prevent money laundering and terrorism financing. South Africa landed there in February 2023, mainly due to weaknesses left over from the state capture era — weak oversight, limited enforcement, and poor transparency around who actually owns companies and trusts.
Over the last two years, regulators, the South African Reserve Bank, and the Financial Intelligence Centre got to work. They completed all 22 FATF action items, introduced new laws, and started holding institutions more accountable. By the way, if you registered a company you would have noticed that the CIPC has requested you to fill out your Beneficial Ownership as a director of that company. If I’m not mistaken that request is part of the efforts undertaken to “de-list” South Africa from the grey list.
The FATF’s on-site visit this July confirmed the improvements were real and lasting — leading to South Africa’s removal from the list in October.
Why this matters for investors and business owners:
Lower risk premium: international investors see South Africa as less risky.
Easier capital flows: banks and businesses face fewer compliance hurdles.
Improved credibility: global confidence in South Africa’s governance and financial integrity gets a real boost.
In short: this is a vote of confidence in the country’s reform efforts and signals South Africa’s strength as a financial hub.
Maintaining these efforts will continue to attract foreign investment in South Africa, which will be huge for all of us. What are your thoughts on this de-listing?
On my journey to becoming a master capital allocator, one lesson down, a billion more to go
Hope you all have a great day
-Mansa
