According to Bloomberg’s Misery Index which looks at inflation and unemployment levels, South Africa’s economy ranks third out of 62 countries. Only Venezuela and Argentina were ranked as having a more miserable economy.
Consumer confidence has plummeted to a low and unemployment levels are above 26%, with the average secondary school leaver not getting their first job until they are 30 years old.
Corruption allegations and charges have destroyed the reputation of South Africa and it is understandable that people are apprehensive about investing money in the country.
The gloomy outlook for South Africa’s economy has had ripple effects across the population.
Where to now?
Dawie Roodt from the Efficient Group most recently said: If you make money, take it out of the country.
It may be worthwhile to place some money overseas for the time being until South Africa’s economy performs more consistently and Ramaphosa has had more of a chance to rid the government of its corruption and attract investment.
The majority of HNWIs in South Africa are deciding on “financial immigration”. Leaving the country financially with offshore investments are the best safety deposit of wealth.