South Africa

Dawie Roodt’s advice for people staying in South Africa – or returning

Efficient Group chief economist Dawie Roodt said that while there are many reasons to stay in South Africa, there are many challenges that people need to be aware of.

Over the past few years, as South Africa’s economy has deteriorated and service delivery has declined, many South Africans have made the decision to leave or have at least considered emigrating.

Data from The Outlier revealed that there were just over 900,000 South Africans living abroad in 2020.

This number has increased steadily over the past 20 years, from 500,000 in 2000, according to Stats SA’s Migration Profile Report for South Africa 2023.

Of these 900,000 people, 7 out of 10 live in Europe or Oceania. In particular, Australia and New Zealand have seen a large growth in South African residents. 

In 2020, around 273,000 South Africans lived in those two countries, more than double the 106,000 who lived there in 2000.

Last year, the annual 2022/23 Professional Provident Society Student Confidence Index revealed that most South African university students want to leave the country.

The reasons for leaving vary from crime and corruption to a lack of job opportunities, failing infrastructure, and the rising cost of living.

The survey involved 2,400 undergraduates and postgraduates studying towards a profession-specific degree at public and private universities.

The students studied critical skills like engineering, medicine, law, accounting, business management, and psychology.

The survey found that 90% of the university students desired to work and live abroad to gain experience.

What was particularly worrying is that the percentage of students, particularly younger black students, who want to leave jumped from 39% to 90% in two years.

It shows that the country faces a mass exodus of skills as young, qualified South Africans have an overwhelming desire to live and work abroad.

However, the 2024 elections resulted in the ANC losing its majority and forming a Government of National Unity, which has sparked optimism about the country’s future for many.

Efficient Wealth chief economist Dawie Roodt

Roodt told Daily Investor that South Africa is a nice place to live for several reasons, and there are many benefits to staying.

For example, living here is far cheaper than in many other countries, especially European countries, where many South Africans emigrate.

It is also a beautiful country with excellent weather and wonderful opportunities.

“It’s very nice to stay in South Africa, but you have to realize that there are significant challenges that you have to risk,” Roodt said.

Firstly, he said people staying in or wanting to return to South Africa must realise that it is a very dangerous place, “so make sure that you are safe”. 

Secondly, he advised people to ensure that they remain relevant and keep up with the most recent technological developments in whatever industry they are in.

“Make sure that you have a good computer, make sure you’ve got a good internet connection, and then it doesn’t matter where you live in the world,” he said.

“You can be anywhere in the world with a good internet connection,” he said. “Nowadays, most economic activities take place in the service industry or the tertiary industries, where we really only need a good internet connection.”

Thirdly, Roodt advised people to make sure that a substantial portion of their assets are invested abroad for various reasons. 

“There are simply more opportunities abroad, but also because I think the rand will depreciate over time and lose value over time,” he explained.

Ultimately, Roodt said that while the new government is much better than what South Africa had previously, “it’s a very long way to go before we will be able to fix this economy”. 

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