Dawie Roodt’s advice for people staying in South Africa

Efficient Group chief economist Dawie Roodt said South Africa offers a standard of living like no other country can, but to take advantage of it, South Africans must prioritise their safety and ensure the majority of their wealth is invested outside the country.
Statistics show that about one million South Africans live in other countries, with almost half choosing the United Kingdom, Australia, or Canada.
The United Nations’ latest report counted around 915,000 South Africans living in 30 countries, mostly in Africa, Europe, and North America.
Since these numbers were last updated in 2021, the actual number is probably even higher. Many people leave because of poor services, lack of jobs, and high crime rates.
However, Roodt told BusinessTech that South Africa offers many benefits to its residents that can’t be replicated in any other country.
“The weather is fantastic, the natural beauty is breathtaking, and the people are welcoming.
He added that South Africa is an exciting place to be and far more affordable than most developed countries.
“South Africa is a very special place. The first thing I did after returning from New Zealand was to buy a proper steak for a third of the price,” he said.
However, Roodt noted that to take full advantage of living in South Africa, people must follow a few basic rules.
He said people staying in South Africa need to prioritise their safety, acquire the necessary skills, have a reliable computer and internet connection, and maintain a steady income.
“South Africa is a dangerous place. There are many risks in South Africa. You need to identify these risks and manage them,” he said.
One of the most important things is to be safe. This may involve living in a security estate and avoiding risky situations.
“South Africa is not an ideal place for those without financial means, but for those with a reasonable income, it can be a wonderful place to live,” he said.
However, Roodt stressed that this depends on being very careful with what you do with your money and investments.
When it comes to investments, there are a few key strategies to consider.
“South Africa’s currency is highly volatile, so it’s essential to protect your wealth from potential devaluation.
“A substantial portion of your assets should be invested abroad. However, simply moving money overseas isn’t enough—you need the proper financial structures in place.
“Many people fail to plan for scenarios like taxes or accessing funds in case of emergencies, which can create complications later,” he said.
He also advised 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.
At the same time, keeping some of your investments in South Africa can be beneficial if you are very careful with what you invest in.
“Due to the higher risk in the country, interest rates are relatively high, offering good returns on interest-bearing instruments,” he said.
He also added that South Africa’s banking system is stable, and you can rely on local investments for income despite the risk of currency devaluation.
“The high interest rates often compensate for this risk”.
“South Africa is a fantastic country to live in as long as you can effectively manage the risks and take advantage of the overseas markets that could benefit your standard of living with the rand,” said Roodt.