Dawie Roodt gives advice for people living in South Africa by Ronelle Snyders

[Nat Quinn]

Dawie Roodt, chief economist of Efficient Group, said South Africa offers a standard of living like no other country can, but to benefit from it, South Africans must prioritize their security and ensure that the majority of their wealth is invested outside the country.

Statistics show that approximately 1 million South Africans live in other countries, with almost half choosing the United Kingdom, Australia or Canada.

The United Nations’ latest report counted about 915,000 South Africans living in 30 countries, mostly in Africa, Europe and North America.

Since these numbers were last updated in 2021, the actual number is likely even higher. Many people are leaving due to poor services, lack of jobs, and high crime rates.

However, Roodt told BusinessTech that South Africa offers many benefits to its residents that cannot be replicated in any other country.

“The weather is fantastic, the scenery is breathtaking, and the people are welcoming.

He added that South Africa is an exciting place to be and is much more affordable than most developed countries.

“South Africa is a very special place. The first thing I did after returning from New Zealand was buy a proper steak for a third of the price,” he said.

However, Roodt noted that people need to follow a few basic rules to fully utilize the benefits of living in South Africa.

He said people living in South Africa shouldsafetyprioritize, learn the necessary skills, have a reliable computer and internet connection, and maintain a steady income.

“South Africa is a dangerous place. There are many risks in South Africa. You need to identify and manage these risks,” he said.

One of the most important things is to be safe. This may involve living in a security estate and avoiding risky situations.

“South Africa is not an ideal place for those without financial means, but for those with a reasonable income it can be a wonderful place to live,” he said.

Roosdt, however, emphasized that it depends on being very careful with what you do with your money and investments.

When it comes to investing, there are a few key strategies to consider.

“South Africa’s currency is highly volatile, so it is essential to protect your wealth against potential devaluation.

“A significant portion of your assets should be invested offshore. However, moving money overseas is not enough – you need the right financial structures.

“Many people fail to plan for scenarios such as taxes or access to funds in case of emergencies, which can cause complications later,” he said.

He also advised South Africans to avoid buying property or any fixed assets that are binding in nature, as they pose a significant risk to their wealth and cannot be easily disposed of.

At the same time, it can be beneficial to keep your investments in South Africa if you are very careful about what you invest in.

“Due to the higher risk in the country, interest rates are relatively high, offering good returns on interest-bearing instruments,” he said.

He also added that South Africa’s banking system is stable, and you can rely on local investments for income despite the risk of currency devaluation.

“The high interest rates often compensate for this risk.”

“South Africa is a fantastic country to live in as long as you can manage the risks effectively and take advantage of the overseas markets that can benefit your standard of living with the rand,” Roodt said.

BusinessTech

source:Dawie Roodt gives advice for people living in South Africa – Volksskrag Nuus

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