S/C/N/853  
 
7 December 2015  
(15-6475)  Page: 1/14  
Council for Trade in Services  Original: English  
 
NOTIFICATION OF THE REPUBLIC OF SOUTH AFRICA OF PREFERENTIAL TREATMENT TO 
SERVICES AND SERVICE SUPPLIERS OF LEAST-DEVELOPED COUNTRIES 
The following notification from the delegation of the Republic of South Africa, 
dated 2 December 2015, is being circulated to the Members of the Council for Trade in Services. 
 
_______________ 
 
 1. The Permanent Mission of  the Republic of So uth Africa to the World Trade Organization in 
Geneva has the honour to notify to the World Trade Organization Council for Trade in Services the 
preferential treatment which the Republic of South Africa has extended to least-developed 
countries in accordance with the decision at the WTO’s Eighth Ministerial Conference on Preferential Treatment to Services and Serv ice Suppliers of Least-Developed Countries 
(WT/L/847), and the decision by Ministers at the WTO’s Ninth Ministerial Conference on 
Operationalization of the Waiver Concerning Preferential Treatment to Services and Service Suppliers of Least-Developed Countries (WT/L/918), with effect from 1 July 2015. 
 
2. The preferential treatment is made in sector s and modes of supply in areas of interest to 
least-developed countries, as set out in The Collective Request Pursuant to the Bali Decision on the Operationalization of the Waiver Concerning Preferential Treatment to Services and Service 
Suppliers of Least Developed Countries (S/C/W/356). The preferential treatment is set out in a 
schedule that for ease of reference comprises of GA TS plus (preferential) treatment. The Republic 
of South Africa intends to maintain these preferences for the period of the Waiver. 
 
 
 
_______________ 
  The classification of services sectors in this o ffer is based on the 1991 Provisional Central Product 
Classification (CPC) of the United Nations Statisti cal Office where specified. The ordering is based 
on the Services Sectoral Classification list contained in the document MTN.GNS/W/120 dated 10 July 1991.  
 BOLD   –  New text 
 STRIKE OUT   –  Deleted text 
 ITALICS  – Where any new or deleted text constitutes merely a technical refinement that 
does not alter the scope or substance of an existing commitment.   
  S/C/N/853  
 
- 2 - SOUTH AFRICA – SCHEDULE OF SPECIFIC COMMITMENTS 
 
Modes of supply:  1) Cross-bord er supply    2) Consumption abroad  3) Commer cial presence 4) Presen ce of natural persons  
Sector or Sub-sector Limitations on Market Access Limitations on  National Treatment Additional 
Commitments 
I. HORIZONTAL COMMITMENTS  
ALL SECTORS INCLUDED IN 
THIS SCHEDULE 4) Unbound, except for the temporary presence 
for a period of up to three years, unless otherwise specified, without requiring compliance with an economic needs test, of the following categories of natural persons providing services: 
 A. Services Salespersons  - natural persons not 
based in South Africa and acquiring no remuneration from a source located within South Africa, who are engaged in activities related to representing a services provider for the purpose of negotiating for the sale of the services of that provider, without engaging in making direct sales to the general public or 
supplying services. Temporary presence for Services Salespersons is limited to a ninety-day period. 
 4) Unbound, except for measures concerning the 
categories of natural persons referred to in the market access column   
  S/C/N/853  
 
- 3 - Modes of supply:  1) Cross-bord er supply    2) Consumption abroad  3) Commer cial presence 4) Presen ce of natural persons  
Sector or Sub-sector Limitations on Market Access Limitations on  National Treatment Additional 
Commitments 
II. SECTOR SPECIFIC COMMITMENTS 
 
 B. Intra-corporate Transferees  – natural 
persons of the following categories who have been employed by a ju ridical person that 
provides services within  South Africa through 
a branch, subsidiary, or affiliate established in South Africa and who have been in the prior employ of the juridical person outside South Africa for a period of not less than one year immediately preceding the date of application for admission: 
  
 
  Executives  - natural persons within the 
organization who primarily direct the management of the organization or establish goals and policies for the organization or a 
major component or function of the 
organization, exercise wide latitude in decision-making, and receive only general 
supervision or direction from higher-level executives, the board of directors, or 
stockholders of the business. 
  
 
  Managers  - natural persons within an 
organization who primarily direct the organization, or a depa rtment or subdivision 
of the organization, supervise and control the 
work of other supervis ory, professional or 
managerial employees, have the authority to hire and fire or recommend hiring, firing, or other personnel acti ons and exercise 
discretionary authority over day-to-day operations at a senior level. 
  
 
  Specialists  - natural persons within an 
organization who possess knowledge at an advanced level of continued expertise and who possess proprietary knowledge of the organization's product, service, research equipment, techniques, or management. 
  
  
  S/C/N/853  
 
- 4 - Modes of supply:  1) Cross-bord er supply    2) Consumption abroad  3) Commer cial presence 4) Presen ce of natural persons  
Sector or Sub-sector Limitations on Market Access Limitations on  National Treatment Additional 
Commitments 
  Professionals  - natural persons who are 
engaged, as part of a services contract 
negotiated by a juridical person of another Member in the activity at a professional level 
in a profession set out in Part II, provided such persons possess the necessary academic credentials and professional qualifications, which have been duly recognised, where appropriate, by the prof essional association in 
South Africa. 
  
 
 C. Personnel Engaged in Establishment  - 
natural persons who have been employed by 
a juridical person for a period of longer than 
one year immediately preceding the date of application for admiss ion and who occupy a 
managerial or executive position and are entering South Africa for the purpose of establishing a commercial presence on behalf of the juridical person.  
  
  
  S/C/N/853  
 
- 5 - Modes of supply:  1) Cross-bord er supply    2) Consumption abroad  3) Commer cial presence 4) Presen ce of natural persons  
Sector or Sub-sector Limitations on Market Access Limitations on  National Treatment Additional 
Commitments 
2. COMMUNICATION  
 SERVICES   Telecommunications 
Services  
  Facilities ba sed and public- 
 switched 
telecommunications  
 services:  
  1) None Only through the network of Telkom 
monopoly or subsequent duopoly on 
international traffic. Telkom monopoly to 
terminate not later than 31.12.2003, 
thereafter duopoly. 
 
2) None   
  1) None      2) None  
  South Africa undertakes the attached additional commitments on regulatory principles.
 
(a) Voice services, except over 
value-added network  
(b) Packet-switched data 
transmission services  
(c) Circuit-switched data 
transmission services 
(d) Telex services 3) None, except that Telkom monopoly to 
terminate not later than 31.12.2003; 
thereafter duopoly. 
 foreign investment in suppliers permitted up 
to a cumulative maximum of 30 per cent 
4) Unbound, except as indicated in the   horizontal section. 3) None 
 
 
  4) Unbound, except as indicated in the  horizontal section. Authorities to consider by 
31/12/2003 the feasibility 
of suppliers additional to 
the duopoly. 
(f) Facsimile services  
(g) Private le ased circuit 
services 
 (h) Electronic mail   (CPC 7523) (i) Voice mail (CPC 7523) (j) On-line information and 
data  
 base retrieval (CPC 7523) (k) Electronic data interchange 
 
 (EDI)   (CPC 7523) (l) Enhanced/value-added   facsimile services, including 
 
 store and forward, store 
and  
 retrieve (CPC 7523) 
(m) Code and protocol 
conversion 
(n) On-line information and/or   data processing (including   transaction processing)   (CPC 843)  
   1),2), 3) None General limitations: 
 There are limitations on the bypass of South 
African facilities for routing of domestic and 
international traffic.  Telkom is currently 
acting as a de facto regulator by means of 
agreements entered into with VANS providers 
in South Africa. 
 VANS providers can only provide international 
services with the consent of Telkom SA Ltd.  
Legislation is currently being proposed to 
introduce a Regulator who might take over 
the licensing function.  No formal policy exists 
and applications from international VANS are 
dealt with on an informal ad hoc basis.  This 
situation may be addressed with the 
anticipated introduction of a new regulatory 
regime. 
4) Unbound except as indicated in the horizontal 
section  
   1) None 2) None 3) None           
 
    4) Unbound except as indicated in the horizontal 
section  
Liberalization of resale 
services to take place 
between 2000 and 2003 
with authorities to define 
terms and conditions as 
well as the maximum limit 
for foreign investment  
  S/C/N/853  
 
- 6 - Modes of supply:  1) Cross-bord er supply    2) Consumption abroad  3) Commer cial presence 4) Presen ce of natural persons  
Sector or Sub-sector Limitations on Market Access Limitations on  National Treatment Additional 
Commitments 
(o) Other - Paging services - Personal radio 
communication  
 services - Trunked radio system 
services 1) None Only through the network of Telkom 
monopoly or subsequent duopoly on 
international traffic. Telkom monopoly to 
terminate not later than 31.12.2003; 
thereafter duopoly. 
2) None 
3) None except that foreign investment in 
suppliers permitted up to a cumulative maximum of 30 per cent. 
4) Unbound, except as indicated in the horizontal 
section. 
 1) None 
    2) None 3) None   4) Unbound, except as indicated in the horizontal 
section. 
  
- Mobile Cellular, including  
 mobile data 1) None Only through the network of Telkom 
monopoly or subsequent duopoly on 
international traffic. Telkom monopoly to 
terminate not later than 31.12.2003; 
thereafter duopoly. 
2) None 1) None 
 
   2) None  Authorities to examine 
feasibility of additional 
suppliers by 31/12/1998. 
 3) None, except that  Services supplied on a 
duopoly basis.  One addi tional mobile cellular 
licence will be granted within two years. 
 foreign investment in suppliers permitted up 
to a cumulative maximum of 30 per cent. 
 3) None  
 4) Unbound, except as indicated in the horizontal 
section. 
 4) Unbound, except as indicated in the horizontal 
section.  
- Satellite-based services  1) None  Only through the network of Telkom 
monopoly or subsequent duopoly on 
international traffic. Telkom monopoly to 
terminate not later than 31.12.2003; 
thereafter duopoly. 
2) None 
3) None , Supplied only by Telkom monopoly 
until 31.12.2003; thereafter duopoly. 
 Foreign investment in suppliers permitted up 
to a cumulative maximum of 30 per cent. 
4) Unbound, except as indicated in the horizontal 
section. 
 1) None 
     2) None 
3) None 
  4) Unbound, except as indicated in the horizontal 
section 
 Authorities to examine 
feasibility of additional  
suppliers by 31/12/1998  
  S/C/N/853  
 
- 7 - Modes of supply:  1) Cross-bord er supply    2) Consumption abroad  3) Commer cial presence 4) Presen ce of natural persons  
Sector or Sub-sector Limitations on Market Access Limitations on  National Treatment Additional 
Commitments 
7. Financial Services  A. All Insurance and Insurance  
 Related Services 
 Headnote   Mode 3 
 The acquisition of shares or any other interest (by a resident or non-resident) in a registered South African insurer resulting  in the 
holding of 25% or more of  all the shares or other interest in that business, requires the written approval of the Regulatory Authority.  
 The executive chairman, public officer and the majority  of directors must be re sident in South Africa. 
 Life insurance actuarie s The statutory actuary1 of a life insurer must be resident in South Africa.    
(a) Direct life insurance 
 (CPC 8121 +) 
(b) Direct non- life insurance 
 (CPC 8129 +) (d) Insurance intermediation 
and auxiliary services 
 (CPC 8140)     (c) Reinsurance  
 (CPC 81299 +)  1) Unbound 
2) None 
3) All insurers/reinsurers (and insurers on whose 
behalf policies are sold) need to be incorporated as a public company in South Africa and registered with the supervisory 
authority to carry on insurance business in 
South Africa. 
4) Unbound, except as indicated in the horizontal 
section 
 1)  None 
2)  None 
3)  None, except that re-insurers must be 
locally incorporated and registered with the 
supervisory authority to carry on insurance 
business in South Africa.  
4) Unbound, except as indicated in the horizontal 
section. 
 1) Unbound 
2) None 
3) None      4) Unbound, except as indicated in the horizontal 
section. 
 1)  Unbound 2) None 3) None    4) Unbound, except as indicated in the horizontal 
section. 
  
    
                                               
1 The statutory actuary of a life insurer is an individual appointed by the insurer and approved by the regulator. The statutory  actuary is assigned specific duties in legislation.   
  S/C/N/853  
 
- 8 - Modes of supply:  1) Cross-bord er supply    2) Consumption abroad  3) Commer cial presence 4) Presen ce of natural persons  
Sector or Sub-sector Limitations on Market Access Limitations on  National Treatment Additional 
Commitments 
B. Banking and Other 
Financial Services 
 (a) Accepting of deposits and 
other repayable funds from the public 
 (CPC 81115 to 81119) (b) Lending of all types, 
including, inter alia , 
consumer credit, mortgage credit, factoring and financing of commercial transactions 
 (CPC 8113) 
(c) Financial Leasing  (CPC 8112) (d) All payments and money 
transmission services, including credit, charge and debit cards, travellers cheques and bank drafts (CPC 81339 +) 
(e) Guarantees and  commitments   (CPC 81199 +) (f) Trading for own account or 
for account of customers the following: 
 (i) Money markets 
 instruments 
  (CPC 81339+)  (ii) Foreign exchange   (CPC 81333)  (iii) Derivative products   (CPC 81339 +) 
 (iv) Exchange rate   and 
interest rate  instruments 
  (CPC 81339 +)  1) Unbound , except for companies involved in  
asset management, coll ective investment 
schemes and advisory services. These 
companies need to register with the local 
supervisory authority. 
2) Unbound, except for asset management, 
collective investment schemes, advisory services,  provision and transfer of financial 
information and financial data processing. 
3) None, except that dealings in foreign 
exchange in South Africa must be carried out through a dealer authorised by the SA Reserve Bank. Only banks registered to 
operate in South Africa with the required 
minimum capital base are eligible to seek authorization as a foreign exchange dealer. 
Companies involved in asset management, 
collective investment schemes and custodial 
services for securities and financial instruments (including equities and bonds) need to be incorporated as public companies in South Africa. and registered with the local 
supervisory authority authority to carry on 
business in South Africa Trading for the 
account of customers on a licensed exchange  
requires separa tely capitalised incorporation 
in South Africa as a public or private company. and registrati on with the relevant 
supervising authority. 
 
4) Unbound except as indicated in the horizontal 
section 1) Unbound 
     2) Unbound   3) None  Branches of banks not incorporated in 
South Africa must maintain a minimum balance 
of R 1 million on the deposit accounts of 
natural persons. 
 
                4) Unbound except as indicated in the horizontal 
section 
  
     
  S/C/N/853  
 
- 9 - Modes of supply:  1) Cross-bord er supply    2) Consumption abroad  3) Commer cial presence 4) Presen ce of natural persons  
Sector or Sub-sector Limitations on Market Access Limitations on  National Treatment Additional 
Commitments 
 (v) Transferable securities   (CPC 81321 +)  (vi) Other negotiable 
 instruments 
  (CPC 81339 +) (g) Participation in issues of all 
kinds of securities, including underwriting and placement as an agent 
 (CPC 8132 +) (h) Money broking  (CPC 81339 +) (i) Asset management, such 
 as cash or portfolio 
 management, all forms of  collective investment  management, custodial  depository and trust  services  (CPC 8119+and 81323+)   
 
(j) Settlement and clearing 
services for financial assets, including securities, derivative products and other negotiable instruments 
(k) Provision and transfer of 
financial information, and financial data processing and related software by providers of other financial services 
 (CPC 8131+) (l) Advisory and other 
auxiliary financial services 
on all the activities listed in 
subparagraphs (v) through (xv) of paragraph 5.(a) of the Annex on Financial Services. 
 (CPC 8131+ and 8133+)    
  
  S/C/N/853  
 
- 10 - Modes of supply:  1) Cross-bord er supply    2) Consumption abroad  3) Commer cial presence 4) Presen ce of natural persons  
Sector or Sub-sector Limitations on Market Access Limitations on  National Treatment Additional 
Commitments 
9. TOURISM AND TRAVEL   RELATED SERVICES  A. Hotels and Restaurants 
 (including catering)  (CPC 641)    C. Tourist Guide Services 
 (CPC 7472)  
  1) Unbound except for catering:  None  
2) None 
3) None 4) Unbound except as indicated in the horizontal 
section 
 1) Unbound*  None  
2) None 
3) None 4) Unbound except as indicated in the horizontal 
section  
  1) None 2) None 3) None 4) Unbound except as indicated in the horizontal 
section 
 1) Unbound*  None  
2) None 
3) None 4) Unbound except as indicated in the horizontal 
section 
  
11. TRANSPORT SERVICES  C. Air Transport  Services   
 
(c) Rental of aircraft with 
crew 
 (CPC 734)     
 1) None 2) None 3) None: subject to equity limitations of  49% for operations in SA and 25% for  operations from SA to third parties. 4) Unbound except as indicated in the 
horizontal section. 
  
 1) None 2) None 3) None   4) Unbound except as indicated in the 
horizontal section. 
  
(d) Maintenance and repair 
of aircraft 
 (CPC 8868**) 
 1) None 
2) None 
3) None: subject to equity limitations of 
49% for operations in SA and 25% for 
operations from SA to third parties. 
4) Unbound except as indicated in the 
horizontal section. 
 1)  None 
2)  None 
3)  None 
 
 
4)  Unbound except as indicated in the 
horizontal section. 
  
(e) Supporting services for 
air transport 
 (CPC 746)  1) Unbound 
2) None 
3) Unbound 
4) Unbound 
 1) Unbound 
2) None 
3) Unbound 
4) Unbound   
  S/C/N/853  
 
- 11 - Modes of supply:  1) Cross-bord er supply    2) Consumption abroad  3) Commer cial presence 4) Presen ce of natural persons  
Sector or Sub-sector Limitations on Market Access Limitations on  National Treatment Additional 
Commitments 
(f) Selling and marketing 
of air transport services 
      (g) Computer reservation 
services  1) Unbound 
2) Unbound 
3) None: subject to equity limitations of 
49% for operations in SA and 25% for operations from SA to third parties. 
4) Unbound except as indicated in the 
horizontal section. 
 
1) Unbound 
2) Unbound 
3) None 
4) Unbound 1) Unbound 
2) Unbound 
3) None 
  
4) Unbound 
  
1) Unbound 
2) Unbound 
3) None 
4) Unbound  
F. Road Transport Services 
 
(c) Rental of commercial 
vehicles with operator 
 (CPC 7124)    (d) Maintenance and repair of 
road transport equipment 
 (CPC 6112)   
 1) Unbound 2) None 3) None 4) Unbound except as indicated in the 
horizontal section. 
 1) Unbound* 2) None 3) None 4) Unbound except as indi cated in the horizontal 
section.   
 1) Unbound 2) None 3) None 4) Unbound except as indicated in the 
horizontal section. 
 1) Unbound* 2) None 3) None 4) Unbound except as indicated in the horizontal 
section. 
 
  
 
Coding: Numbers indicated in each sectoral commitment are referenc es to the Services Sectoral Classification List (MTN.GNS/W/12 0) – W120 and the UN 
Provisional Central Product Classification of 1991 (CPC). 
   + Part of item 
* Unbound due to lack of technical feasibility 
 S/C/N/853 
 
- 12 - 
 
  ADDITIONAL COMMITMENTS BY SOUTH AFRICA 
REFERENCE PAPER  
 
Scope 
 
The following are definitions and principles on the regulatory framework for the basic 
telecommunications services.    
Definitions 
 
Users mean service consumers and service suppliers.   
 
Essential facilities mean facilities of a public telecommunications transport network or service that 
 
 (a) are exclusively or predominantly provided by a single or limited number of suppliers;  
  and 
  (b) cannot feasibly be economically or technically substituted in order to provide a  
  service. 
 A major supplier is a supplier which has the ability to materially affect the terms of participation 
(having regard to price and supply) in the relevant market for basic telecommunications services 
as a result of: 
  (a) control over essential facilities;  or 
 
 (b) use of its position in the market.  
 
1. Competitive safeguards 
 1.1 Prevention of anti-competitive practices in telecommunications 
  Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone or together, are a major supplier from engaging in or continuing anti-competitive practices. 
 
1.2 Safeguards 
 
 The anti-competitive practices referred to above shall include in particular: 
  (a) engaging in anti-competitive cross-subsidization;  
 (b) using information obtained from competitors with anti-competitive results;  and 
  (c) not making available to other services suppliers on a timely basis technical   
  information about essential facilities and commercially relevant information which are 
  necessary for them to provide services.  
 
2. Interconnection 
 
2.1 This section applies to linking with suppliers providing public telecommunications transport networks or services in order to allow the users of one supplier to communicate with users of 
another supplier and  to access services provided by another supplier, where specific commitments 
are undertaken.  
 
 S/C/N/853 
 
- 13 - 
 
  2.2 Interconnection to be ensured 
 
 Interconnection with a major supplier will be ensured at any technically feasible point in the 
network.  Such interconnection is provided.  
 (a) under non-discriminatory terms, conditions (including technical standards and  
  specifications) and rates and of a quality no less favourable than that provided for its   own like services or for like services of  non-affiliated service suppliers or for its  
  subsidiaries or other affiliates; 
  (b) in a timely fashion, on terms, conditions (including technical standards and    specifications) and cost-oriented rates that are transparent, reasonable, having regard 
  to economic feasibility, and sufficiently unbundled so that the supplier need not pay 
  for network components or facilities that it does not require for the service to be   provided; 
 
 (c) upon request, at points in addition to the network termination points offered to the   majority of users, subject to charges that reflect the cost of construction of necessary 
  additional facilities; and 
  2.3 Public availability of the procedures for interconnection negotiations 
  The procedures applicable for interconnection to a major supplier will be made publicly available. 
 
 2.4 Transparency of interconnection arrangements 
  It is ensured that a major supplier will make publicly available either its interconnection agreements or a reference interconnection offer.  
 
2.5 Interconnection:  dispute settlement 
 
 A service supplier requesting interconnectio n with a major supplier will have recourse, 
either:  
 (a) at any time or 
  (b) after a reasonable period of time which has been made publicly known  
to an independent domestic body, which may be a regulatory body as referred to in paragraph 5 
below, to resolve disputes regarding appropriate terms, conditions and rates for interconnection 
within a reasonable period of time, to the extent  that these have not been established previously. 
 
 3. Universal service 
  Any Member has the right to define the kind of universal service obligation it wishes to maintain.  Such obligations will not be regarded as anti-competitive per se , provided they are 
administered in a transparent, non-discriminatory and competitively neutral manner and are not 
more burdensome than necessary for the kind of universal service defined by the Member.      
 4. Public availability of licensing criteria 
  Where a licence is required, all the licensing criteria and the terms and conditions of individual licences will be made publicly available. 
 
 The reasons for the denial of a licence will be made known to the applicant upon request. S/C/N/853 
 
- 14 - 
 
  5. Independent regulators 
 
 The regulatory body is separate from, an d not accountable to, any supplier of basic 
telecommunications services. The decisions of and the procedures used by regulators shall be impartial with respect to all market participants. 
 
6. Allocation and use of scarce resources 
 
 Any procedures for the allocation and use of scarce resources, including frequencies, 
numbers and rights of way, will be carried ou t in an objective, timely, transparent and non-
discriminatory manner. The current state of allocated frequency bands will be made publicly available, but detailed identification of frequencies allocated for specific government uses is not 
required. 
  
__________