Investing in South Africa

Hello everyone,

During your expatriation in South Africa, you might have been made aware of interesting investment schemes (local or international). Whether one wants to make money grow, protect oneself or prepare for retirement, investment is always an attractive option. It is, however, never free of risk. Would you, therefore, like to share some practical information for other expats and expats to be?

Is the South African economy open to foreign investment? Do local authorities encourage investment (through formalities, tax etc.)?

What are the promising sectors to invest and do business in South Africa?

Who do you turn to for information before investing your money? (organisation, professional, lawyer, consultant)

According to the sectors of activity and the projects, what budget should be foreseen for an investment in South Africa?

What do you think are the pitfalls to avoid and what advice would you give someone who wants to invest?

Thanks in advance for your feedback,

I´d be hesitant to invest in the SA stock market via a local broker. In my experience fees are high and liquidity is often low - which means even orders of "normal" household sizes will affect prices in an undesirable way.
It´s also not possible to transfer your portfolio out of the country to another brokerage firm. You´d have to sell them first which incurs quite some fees.

And don´t get me started on the currency risk or political interference (think removal of 2 Ministers of Finance within 3 days) or BEE. Just look at the stock price history of e. g. Texton, a property trust which lost 70% of it´s value because of having to pay to a BEE company (one of the directors being Zuma´s son).

The best investment in to thy self. Read good personal development books to strengthen your insights and you'll be guided to make right decisions that will lead you to the wealth you always wanted.

Never attempt to venture on anything that promises instant return. Everything requires time and season to reap and harvest.

Take a good read of Rich Dad, Poor Dad and you'll figure out what's best for you.


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