Live in South Africa – but put your savings overseas

Vestact founder Paul Theron and other investment specialists advised South Africans to externalise their wealth and put their life savings in a hard currency.

Theron wrote in his daily newsletter that it is important for South Africans to externalise their money beyond the reach of greedy socialists.

“I remind them that South Africa has an uncertain political future,” he said, highlighting recent comments by EFF leader Julius Malema.

Malema said he is prepared to give their vote to the ANC nationally with one demand – make Floyd Shivambu South Africa’s Finance Minister.

He accused the National Treasury of engaging in anti-poor policies. “You need radical change,” Malema said.

Malema said with the power of Shivambu as Finance Minister, he can influence important decisions regarding South Africa’s policies.

Theron sketched a 2030 scenario where Finance Minister Floyd Shivambu tightens exchange controls and imposes wealth taxes on the rich.

“The rand may be at 100 to the US dollar by then, and inflation might be running at 50% per annum,” he said.

“If that happens, investors will have fled, properties will be near worthless, and the local economy will be in ruins.”

“I’m not saying that these things are going to happen. I’m an optimist, after all. But they are possible. You should act now.”

Many other economic and investment specialists share Theron’s view, including renowned economist Dawie Roodt.

Roodt said South Africans should invest most of their wealth offshore to protect it from political and economic problems while only investing in highly liquid local assets.

South Africa faces many problems, including poor economic growth, an unstable political environment, high crime rates, and collapsing infrastructure.

“Just be aware that we have got an incompetent and corrupt government with all sorts of silly ideological ideas,” Roodt said.

He advised South Africans to have a diversified portfolio, with a large portion invested abroad.

Apart from protecting your wealth against political and economic problems in South Africa, there are also more investment opportunities in international markets.

He 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.