Dawie Roodt’s advice for people staying in South Africa

Efficient Group chief economist Dawie Roodt said South Africa is set to experience a positive year in 2026, both politically and economically.

Roodt told Daily Investor that there will be many changes in South Africa in 2026 as a result of the upcoming local elections.

“I think South Africa is going through a political transition period,” he said. “That is going to be quite exciting, because we’re getting rid of the ANC, which is a good thing.”

Even though Roodt expects the country’s economy to be broadly similar to that of 2025, he noted that it would likely perform slightly better. This is because the ANC has implemented the “wrong macroeconomic policies”.

In particular, Roodt has previously attributed the ruling party’s macroeconomic failures to its adherence to outdated, manufacturing-era ideology.

These ideologies have led to destructive policies, such as excessive centralisation, redistribution over growth, cadre deployment, and tolerance of corruption.

He said these policies undermined institutions, stalled economic expansion, and left South Africa with weak service delivery and a stagnant, poorly managed economy.

“So, a slightly better year coming next year in terms of economic growth, and certainly some changes as far as policy is concerned,” he said, but noted that there are always things that can go wrong.

Internationally, he highlighted US President Donald Trump and the possibility of sanctions being imposed on South Africa as a particular threat to the country’s economy.

There is also a possibility of a financial crisis in 2026. “A financial crisis is certainly something that could happen because there are all sorts of things happening in the world, financial markets that I think are unsustainable,” he said.

Locally, although South Africa’s current political transition phase presents opportunities, the possibility remains that it could also harm the country’s economic growth prospects.

“But I think South Africa’s probably a safer place than most of the places in the world,” Roodt added. He explained that South Africa also remains rife with wonderful economic opportunities.

How South Africans should invest in 2026

For South Africans who want to invest in 2026, Roodt stressed one key piece of advice: “Get a financial advisor. That’s the best thing you can do. Get a qualified financial advisor at a reputable firm to advise you. That is the answer,” he said.

He also previously explained that when South Africans hire someone else to manage their investments, they should ensure that the manager has a good track record of generating returns.

When it comes to offshore investments, Roodt noted that while it is always a good idea to invest overseas, South Africans do not have to do this in order to diversify their portfolios or hedge against the weakness of the rand.

“If you really want to take money offshore, you need to have a lot of money. That’s the bottom line, because it costs money to invest internationally,” he said.

For South Africans who simply want to hedge against the rand or gain some offshore exposure, Roodt explained that it is better and more affordable to put money in local funds that invest offshore.

A rand hedge stock is a company listed in South Africa that earns a significant portion of its earnings outside the country in dollars, euros, or pounds.

Examples of these companies include Naspers, Prosus, Richemont, Anglo American, AB InBev, BHP Group, and Glencore, among others.

When it comes to property investments, Roodt explained that he remains wary. “As a rule, I do not like property.”

He has previously urged South Africans to avoid buying property or any fixed assets that are illiquid by nature, as they present a significant risk to their wealth and cannot be disposed of easily.

Roodt recommended that if South Africans want to buy property or a fixed asset, they should ensure the risk is shared between them and someone else or a financial institution, such as a bank, through a loan.

“Having said that, with interest rates coming down, I think property could be a good investment now, but I would rather invest in listed property,” he said.