Meanwhile, the ailing Zimbabwean President Mugabe who is Gaddafi’s strong ally is in Ethiopia in a one-man Summit rallying a group of discredited African dictators who are masquerading as an African Union Summit.
Some group led by Robert Mugabe and calling itself African Union Security Council on Friday rejected military intervention in Libya to stop a crackdown on opponents of the regime of strongman Muammar Gaddafi,
The announcement came after NATO defence ministers meeting in Brussels on Thursday postponed any decision on a no-fly zone in Libya until it got a UN clearance.
"The South African process is underway and we are writing letters informing them that no money will be allowed to leave South Africa," foreign ministry spokesman Clayson Monyela, said without offering further details.
Local daily Business Day said the money is invested through the $5 billion Libya Arab Africa Investment Co (Laaico), through Libya Oil Holdings, Libya African Investment Portfolio and Libyan Foreign Investment Company (Lafico).
In South Africa, it owns Ensemble Hotel holdings, including the luxury Michelangelo Hotel in Johannesburg.
Libya holds billions of dollars in assets in Africa through subsidiaries of its $70 billion sovereign wealth fund.
The South African presidency said on Wednesday that Gaddafi called Zuma "to explain his side of the story".
The statement said: "South Africa has openly condemned the loss of life and attacks on civilians and reported violations of human rights in Libya."