The last few weeks have been frenetic for South Africa’s banks, merchant banks, assurance companies and investment advisers who have been gearing up for D-day on Tuesday when South African investors will be allowed to invest R200 000 offshore.

Just how many investors are going to rush to their bank or brokers to invest money offshore is anyone’s guess. Estimates of how much money will flow out of South Africa range from R2 billion to R15 billion.

But remember that this is only part of South Africa’s gradual reintegration into the rest of the world’s financial markets. It seems that Tuesday will come and go very smoothly, possibly opening the door to further relaxation of forex controls and ultimately their scrapping.

The sooner that day comes the better. Some people believe that Reserve Bank Governor Chris Stals and Finance Minister Trevor Manuel should have used the current very favourable conditions to remove controls in one fell swoop.

International investors still rank forex controls as a bigger obstacle to foreign investment than crime, inflexible labour conditions or low productivity.

Most South Africans, and that includes the banks, merchant banks, assurance companies and their intermediaries, have been excluded from world markets for …

A number of companies have announced new foreign investment products to coincide with the relaxation in exchange controls from Tuesday. Here are some of the details:

Nedcor Bank

Nedcor Bank will be offering a range of global funds managed by Schroder Investment Management as well as offshore banking products.

Schroder Investment Management is particularly strong in the Asia Pacific region, where almost half of its worldwide offices are located.

“Schroders was Nedcor Bank’s first choice as a partner to manage our offshore unit trusts,” Richard Laubscher, Nedcor chief executive, said.

“The secret of its success lies in an unfailingly reliable performance.”

Nedcor has set up an umbrella fund, the Nedcor Bank Global Portfolio, registered in the Isle of Man.

The fund contains six unit trusts, all carrying the Nedbank brand but to be managed by Schroder. These unit trusts are a Global Managed, Global Bond, Global Equity, US Equity, European Equity and Pacific Equity Fund.

The minimum investment amount is R30 000 which can be split between two funds, since the minimum investment in a subsidiary fund is R15 000. Subsequent investments of at least R10 000 can be made. The costs are five percent up front and a 1,5 …

The world becomes your oyster from Tuesday – but the pearl remains rather small.

The larger than expected, but still comparatively restricted, R200 000 allowance, which Finance Minister Trevor Manuel announced this week that you can take offshore opens up a whole new world of investment, including 34 000 unit trust funds..

The financial services industry, which has been planning its moves since the Budget in March when Manuel signalled the easing of exchange controls on individuals, sprang into action to offer investors an almost bewildering array of new products.

Over the last week dozens of new “offshore” products were launched by local institutions, some as familiar as your bank, unit trust company and life assurer.

Foreign institutions are also entering the market either in partnership with local corporates or on their own.

To enter the offshore investment market will in most cases cost a significant amount of money – you will not get away with much less than R30 000 for most of these new products.

These products complement the international unit trusts and endowments – “onshore” products – which local institutions have been selling for the past year.

The onshore products are similar to the offshore products in …

An avalanche of advertising from local institutions promoting their international products is disguising one of the most exciting features of Tuesday’s partial exchange control relaxation – your ability to choose any intermediary, any investment house and any financial product in the world after decades of confinement to a small market.

You only need to go to your bank and sign two simple forms to identify yourself to the Reserve Bank and state that your tax affairs are in order before you can buy up your allowance of foreign currency. That money can then be used to buy any investment of your choice abroad.

John Morris of TriStar International Consulting says some South Africans will feel more comfortable using the advice and products offered by their local bank, unit trust company or life assurer.

But those who want to make more active decisions and cut down on the commissions and management fees they would pay intermediary agents and institutions, can go directly to the investments of their choice.

For example, there is nothing to stop you from undertaking your own research and on that basis approaching a discount brokerage in New York, and requesting $10 000 of General Electric, $10 000 …