Growth anticipated as SA exits the Grey List

Could coming off the 'Grey List' light the commercial property fuse?

- By JOHN JACK

SOUTH AFRICA'S removal from the Financial Action Task Force (FATF) grey list has injected a much-needed dose of optimism into the economy, with the commercial property sector anticipated to benefit directly.

This announcement shows that South Africa is back on the radar of global investors. It restores credibility, and lowers perceived risk—both of which are critical for property investment and development.

This is a pivotal moment for investors looking to capitalise on reawakening market sentiment.

Getting out of the Grey

In February 2023, South Africa was placed on the FATF grey list due to shortcomings in anti-money laundering and counter-terrorism financing frameworks. This increased international scrutiny, raising our borrowing costs and complicating cross-border transactions.

However, over the past 18 months, government, regulators and the private sector have worked to address these deficiencies, introducing key reforms that provide greater transparency around beneficial ownership, tighter supervision of non-financial sectors such as real estate and law, and a stronger enforcement environment under the Financial Intelligence Centre.