Easy alternative to physically emigrating is investing overseas, says economist
Every skilled professional coming to South Africa, eight are leaving, and the number of black professionals leaving is on the rise, according to a study by Enterprise Observatory of South Africa.
Chief Economist from the Efficient Group, Dawie Roodt talks to Kieno Kammies about South Africans leaving.
Roodt says people do this in a number of ways. Some only move their money out of the country and others physically emigrate to another country.
Roodt provides financial advice to people considering leaving.
So there are many ways of emigrating, but what I have picked up over the last couple of years, is that emigrating is sort-of a standard option. It's not an unusual thing as we saw in the past. It's something that people consider all the time.Dawie Roodt, Chief Economist - The Efficient Group
He says people considering emigration as a back-up option, position themselves in such a way to make this a possibility.
It's all about managing investment risk, he says.
Business people learn to manage their risks in South Africa and can yield high returns.
In South Africa, you can get a return of nearly 9% on the bond market, while in the United States you get less than 2%.Dawie Roodt, Chief Economist - The Efficient Group
The reason for this large difference is due to perceived risks in South Africa, explains Roodt.
And he says he does not only deal with the very wealthy and a wide range of people are diversifying their portfolios offshore.
Anyone can take money out of South Africa and they do. It has become so easy to take money out - an individual can take out up to R11 million annually.Dawie Roodt, Chief Economist - The Efficient Group
Listen to Roodt's insights below:
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