Why one of South Africa’s richest businesswomen won’t be returning home
Magda Wierzycka, one of South Africa’s most successful businesswomen, is reconsidering where she calls home—but South Africa is off the table due to safety concerns.
Wierzycka has built an illustrious career from humble beginnings to become a financial industry powerhouse.
Yet, despite her remarkable achievements, the complexities of international tax laws, safety concerns, and bureaucratic hurdles are prompting her to reconsider where she calls home, reported City AM.
With the UK government planning sweeping changes to tax regulations, Wierzycka is exploring her options, though a return to South Africa remains out of the question.
Beginning at Southern Life as a development actuary, Wierzycka quickly shifted to investment management, where her talent began to shine.
At Coronation Fund Managers, a then-nascent asset management firm, she played a pivotal role in its growth, overseeing a fivefold increase in institutional assets.
Later, she co-founded Sygnia, a firm that grew under her leadership into one of South Africa’s leading financial services companies, managing assets worth over R318 billion.
Her vision and expertise cemented her status as a trailblazer in the financial sector, earning her recognition as one of Africa’s 50 Most Powerful Women by Forbes in 2020.
Despite her accomplishments, Wierzycka has never shied away from speaking out against corruption and unethical practices, particularly in South Africa.
Her outspoken stance against the Gupta family’s influence and former President Jacob Zuma’s administration put her in the crosshairs of political hostility.
Fearing for her safety amid threats and state surveillance, she relocated to London five years ago.
In the UK, she could live without the constant anxiety of a security detail or political retribution, allowing her to focus on her ventures, including Braavos Investment Advisers, a private equity firm she co-founded.
However, the UK no longer offers the haven it once did.
The Labour government’s proposed abolition of the “non-dom” tax regime—a provision allowing wealthy foreigners to pay tax on overseas income in their home countries rather than in the UK—has left Wierzycka at a crossroads.
The new rules, set to take effect in April next year, would significantly increase her tax obligations, including on dividends from Sygnia.
Coupled with changes to inheritance tax laws, the financial impact has forced her to reconsider her future in the UK.
While South Africa might seem like a natural alternative, Wierzycka has ruled it out due to safety concerns and restrictive financial regulations.
Her vocal opposition to corruption makes her a target in a volatile political climate, and her experiences of surveillance and threats remain vivid.
Additionally, South Africa’s exchange controls and estate duty laws complicate the transfer of wealth, making it an unattractive option for someone with global assets.
For instance, transferring significant funds out of South Africa requires approval from the South African Revenue Service, a process Wierzycka described as fraught with difficulty.
“They’ll want that money for themselves,” she remarked, highlighting her mistrust of the system.
Instead, Wierzycka is exploring other countries with favourable tax regimes for foreign nationals, including Greece, Italy, and Switzerland.
These nations offer policies reminiscent of the UK’s former “non-dom” system, aligning better with her financial and lifestyle needs.
However, relocating again presents its own challenges.
Wierzycka has invested heavily in her UK life, employing local staff and contributing to the economy.
The uncertainty surrounding her potential departure has already impacted her UK-based investments, putting further pressure on her decision.
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