South African investors often face a crucial question: should I invest locally or take my money offshore? The answer depends on your financial goals, risk tolerance, and the current economic environment.
Local investments offer familiarity and can support the domestic economy. There are opportunities in sectors like mining, banking, and retail. Tax advantages and easier regulation compliance are also benefits. However, local investments are tied to the performance of the South African economy and the volatile rand.
On the other hand, global investments provide diversification and access to high-growth markets like the US tech sector or emerging Asian economies. Offshore investing can protect your wealth from local political or economic instability and from rand depreciation.
Ideally, a balanced portfolio includes both. Diversification across geographies helps reduce country-specific risks. Tools like global ETFs available via local platforms (e.g., Satrix MSCI World ETF) allow even small investors to gain global exposure without setting up offshore accounts.
The bottom line: don’t choose either/or—choose both, in a proportion aligned with your financial goals.