How to Pay a Foreign Supplier from South Africa

Why SARB exchange control applies to every import payment

South Africa operates a managed exchange control system administered by the South African Reserve Bank (SARB). Every rand that leaves the country — whether to pay a Chinese factory, a US software vendor or a German machinery supplier — must flow through a bank that holds an Authorised Dealer (AD) licence. The AD is your commercial bank (Absa, FNB, Nedbank, Standard Bank, Investec, and others).

This system exists to monitor South Africa's balance of payments and prevent illicit capital flight. For you as an importer, it means you cannot simply do a personal EFT to an overseas account — you need to go through a formal foreign payment process, submit certain documents, and quote the correct BoP category code so SARB can classify the transaction.

The good news: once you have done it once, the process becomes routine. Most businesses complete a once-off setup at their bank (opening a forex or Customer Foreign Currency — CFC — facility) and subsequent payments take a day or two to execute.

Step 1 — Open a forex or CFC facility with your Authorised Dealer bank

Before you can make a single foreign payment, your bank needs to Know Your Customer (KYC) for cross-border transactions. Visit your business banker or apply online and ask to be set up for:

• Outward TT (Telegraphic Transfer) — for paying suppliers by SWIFT wire.
• CFC account (optional but useful) — a rand-denominated or foreign-currency account held at a South African bank that lets you hold USD, EUR, GBP etc. before converting, smoothing out timing differences.
• Forward Exchange Contracts — if you want to lock in today's rate for a future payment (see our FEC guide).

Documents your bank will typically ask for at setup: certified copy of CIPC registration, recent bank statements (3–6 months), proof of business address, import permit or commodity description, SARS tax clearance or Tax Compliance Status (TCS) pin, and details of key beneficiaries (your foreign suppliers). The bank submits a SARB application on your behalf.

Step 2 — Get a supplier invoice and agree on payment terms

Your foreign supplier will issue a commercial invoice (sometimes called a pro forma invoice before goods are shipped). This is the core document you will hand to your bank. It must show:

• Supplier name, address and bank details (IBAN/account number + SWIFT/BIC code)
• Description of goods (enough detail to match an HS tariff code)
• Currency and total amount
• Incoterms (e.g. FOB Shanghai, CIF Durban)
• Payment terms: advance / sight / 30–90 days after bill of lading

Payment terms matter for exchange control. There are three broad categories the bank needs to classify:

Step 3 — Obtain an APN reference if paying in advance above R50,000

If your payment is an advance import payment and the ZAR equivalent exceeds R50,000, SARS requires you to register an Advance Payment Notification (APN) — also called an Advance Import Payment (AIP) — via the SARS eFiling portal or the Registration, Licensing and Accreditation (RLA) system.

The APN ties the outgoing forex payment to a future customs entry, so SARS can verify that the goods eventually arrive. Your bank will not process the advance payment without this reference number — it must be quoted on the payment instruction.

See our full APN guide for a detailed walkthrough of the eFiling steps, what happens if goods do not arrive, and the penalty framework.

Step 4 — Give your bank the BoP category code and supporting documents

Every outward foreign payment must be assigned a Balance of Payments (BoP) category. This is a standardised code that tells SARB what the payment is for. Your bank will either ask you to select one or will guide you through the selection. The most common categories for importers are:

Along with the BoP code your bank will typically require the following documents for a standard import TT:

• Signed commercial invoice from the supplier
• Bill of lading, airway bill or other shipping document (for post-shipment payments)
• Import permit (for controlled goods, e.g. foodstuffs, chemicals, steel)
• APN reference number (for advance payments > R50,000)
• Completed bank TT application form with supplier SWIFT/BIC details

Step 5 — Your bank executes the SWIFT/TT payment

Once your bank has verified the documents and BoP code, it will debit your rand account at the prevailing spot exchange rate (or your locked FEC rate if you hedged — see our FEC guide), convert to the foreign currency, and send a SWIFT MT103 message to the correspondent banking chain that routes funds to your supplier's bank.

Worked example (2026 rates, illustrative only):

You owe a Taiwanese supplier USD 8,000 for electronic components. The spot rate today is R18.50/USD. Your bank charges a TT fee of R350 plus a SWIFT correspondent fee (typically USD 15–25, passed on). Your rand debit will be roughly:

• USD 8,000 × R18.50 = R148,000
• Plus TT fee: R350
• Plus SWIFT correspondent: ~USD 20 × R18.50 = R370
• Total debit: ~R148,720

Settlement time is typically 1–3 business days for most major currency corridors (USD, EUR, GBP, CNY). Some exotic currencies can take longer.

Step 6 — Keep proof for customs and your records

After the payment is executed, your bank will issue a SWIFT confirmation slip (sometimes called a SWIFT MT103 copy or a TT receipt). This is a critical document. Keep it because:

• Your customs agent (clearing agent) may need it to prove the transaction value for the Customs Entry / DA 500.
• SARS can ask for it during an import audit to verify the declared customs value.
• It links to your APN if you registered one, completing the advance payment trail.
• Your bookkeeper needs it to reconcile the forex gain or loss in your accounts (IFRS or IFRS for SMEs requires you to recognise the difference between invoice date rate and payment date rate).

Retain all import payment records — invoices, TT confirmations, APN printouts, shipping docs — for a minimum of five years, consistent with the SARS five-year record-keeping rule.

Full payment checklist

Frequently asked questions

Do I need exchange control approval for every payment?

No — your Authorised Dealer bank handles exchange control compliance on your behalf for routine import payments. You do not need to apply separately to SARB. The bank submits the required BoP reports to SARB electronically. You only need a separate SARB approval for unusual transactions such as capital transfers or payments above certain thresholds — your bank will flag if that applies.

Can I pay a foreign supplier in rands?

You can invoice and contract in rands, but the money still flows through exchange control because it ultimately arrives at a foreign bank. Some suppliers in neighbouring countries (SADC region) may accept ZAR invoices, but the payment still goes through your AD bank's TT process.

What is a CFC account and do I need one?

A Customer Foreign Currency (CFC) account is a foreign-currency account held at a South African bank. It lets you receive export proceeds or hold converted forex before sending it to a supplier. It is optional but useful if you pay suppliers regularly in the same currency — you can hold USD and pay out without converting back and forth, reducing conversion fees and timing risk.

How long does a SWIFT/TT payment take to reach my supplier?

For major currencies (USD, EUR, GBP, CNY) typically 1–3 business days. The receiving country's banking system and any intermediary correspondent banks can add a day. Always tell your supplier to expect 3–5 business days as a safe estimate, and send them the SWIFT reference number so they can trace it at their end.

What happens if I sent money and the goods never arrived?

If you registered an APN and the goods do not arrive within the allowed period (generally 6 months), you must report this to your bank. The bank is required to report it to SARB. You will need to either recover the funds or provide evidence of why the goods did not arrive. Failing to follow up can result in exchange control contraventions. This is one reason Letters of Credit are safer than advance TTs for large or first-time orders — see our LC vs TT guide.

Can I use a fintech (Wise, Payoneer) instead of my bank?

Possibly for small service payments, but for goods imports requiring APN compliance and BoP reporting, you should use a licensed South African Authorised Dealer. Fintech platforms may not be able to generate the APN reference trail SARS requires. Confirm with your tax advisor before using a non-bank payment provider for import transactions.

Related guides

• Advance Import Payment (APN) Explained: The R50,000 Rule
• Forward Exchange Contracts (FEC) for Importers: Locking in the Rand
• Letters of Credit vs Telegraphic Transfer for SA Importers
• Trade Finance for South African SMME Importers
• How Rand Volatility Affects Your Landed Cost (and How to Hedge)
• All paying-suppliers & forex guides →