Dawie Roodt’s advice to people living in South Africa

Renowned economist Dawie Roodt said it would be a mistake for South Africans to make hasty decisions, like selling assets or leaving the country.

Roodt shared his views following a tumultuous week, with local and international actions shaking the financial markets.

Last week, the government of national unity (GNU) was threatened after the National Assembly adopted the Fiscal Framework and Revenue Proposals.

The ANC garnered the support of smaller parties, including Action SA, Rise Mzansi, and Build One South Africa (BOSA), to pass this part of the 2025 Budget.

It caused significant friction between the ANC and the Democratic Alliance, which raised concerns that it could break up the GNU.

It is so concerning that South African business leaders have written to the leaders of the country’s two biggest parties, imploring them to settle their differences.

The South African business leaders said that the collapse of the government would lead to job losses and impact growth.

They include Adrian Gore, the chief executive officer of Discovery, and Duncan Wanblad, the leader of Anglo American.

“We have a great deal to lose. A collapse of the Government of National Unity could reverse the gains we have achieved,” the leaders wrote.

“We therefore write to you with a simple plea: Stay the course. Stay in the room. Hold the line. Keep building. Compromise.”

At the same time, United States President Donald Trump imposed 30% reciprocal tariffs on South African imports.

These tariffs will hurt many South African sectors and potentially harm economic growth, which is already very low.

This is not all. United States Congress officials have introduced a bill to sanction senior South African government and ANC officials who support their adversaries.

The local markets reacted negatively to the news. Over the last week, the rand weakened by 5.5% against the US Dollar – from R18.24 to R19.10.

The JSE All Share Index plummeted from 89,951 to 81,553, showing investors’ concern about the impact of recent developments.

Dawie Roodt’s advice to South Africans

In these times of political and financial uncertainty, many South Africans consider selling their assets or leaving the country.

Efficient Group chief economist Dawie Roodt warned people living in South Africa that such knee-jerk reactions would be a mistake.

“Many people panic after what has happened in South Africa over the past week. They want to sell their assets and leave the country. This is the wrong approach,” he said.

He said the right approach is to identify all the risks the recent turmoil poses to you and your industry, and not to complicate matters further.

“One thing which will make your life even more difficult is if you decide to suddenly sell all your assets,” he said.

“It is much better to stay where you are. There are still many assets in South Africa which produce great returns.”

Roodt explained that South Africa’s equity markers are still attractive and that the capital markets continue to offer good value.

He explained that the local and international financial markets are currently very tumultuous, which can scare some investors.

“The best thing to do is to sit on your hands, do nothing, and relax,” Roodt said.