encouraging new direct investments and discouraging the repatriation by foreign companies of funds generated from disinvestment as well as outward investment by South African companies. The use of the financial rand for repatriation of disinvestment fimds limits the drain on the country's foreign reserves. Drawing down foreign reserves would affect the country's capacity to meet its debt repayment obligations and to finance its essential imports. 44. Overall, the dual exchange rate system has had only a limited impact on capital inflow and outflow. Despite the expectations of the South African Government, restraints on repatriation appears to be discouraging rather than encouraging new direct investments. Moreover, disinvestors are cutting some of their losses by using non-equity links to repatriate licensing or franchise fees and royalties at the higher commercial rand rate. 3. Circvimvcntiiag tra.de sanetij?as and, obligatpry comter-purchase 45. In the absence of capital inflows. South Africa has been forced to generate surpluses in the current account of its balance of trade to offset its debt repayments. In order to circumvent trade sanctions, the South African Government has sought in various ways to encourage avoidance, counter-trade and sanctions-busting. It has set up a special Secretariat for Unconventional Trade to establish sanctions-busting networks and provide advice to importers and exporters. The Private Sector Export Advisory Committee encourages private capital to engage in sanctions-busting activities. For instance, foreign companies eager to sell technology to South Africa or buy strategic minerals from South Africa are asked to buy South African exports or supply strategic imports such as oil and arms. Trade will largely take place through a third country in order to disguise its origins. The South African Government also facilitates 'unconventional' trade by concealing information on foreign trade and shipping traffic. It is illegal to divulge information on matters related to oil, uranium and nuclear technology.
**Analysis**
The text discusses the economic policies of South Africa, specifically the measures taken to manage foreign investments, repatriation of funds, and international trade. It highlights the challenges faced by the country in maintaining its foreign reserves and meeting its debt repayment obligations. The text also touches on the country's efforts to circumvent trade sanctions, which are mainly focused on international trade and economic development.

**Category**
International trade, Economic development