Helping South Africans cast their safety net

 In thought-leadership
Where’s your safety net?

I am a proudly South African, small-town farmer’s son, from the northern parts of Zululand, KZN.  I have heard my parents’ concerns regarding the weather effecting our crop, of theft during harvesting, of the cost of groceries going up year after year, and the threats to farmers’ lives, recently, more so than ever.  All this whilst constantly fighting for better prices from the market place for our crop, and trying to maintain their sense of positivity and loyalty to the country they love, and the country I call home.

To my mind, there are no higher risk takers in South Africa today than our farmers. Not only do they have to deal with what Mother Nature throws at them, they must also overcome the ever-changing and challenging political, social, and economic factors targeting them on a continuous basis. They put everything on the line year after year, not just for their families but for our country, to ensure we have food on our tables, whilst trying to boost the economy with their own hands, employing millions of South Africans along the way. Look at our neighbours in Zimbabwe and see what happens when the experienced farmers are no longer around. Taken for granted, we have seen a country brought to its knees, with thousands unemployed, and not enough crops to feed even its own people.

South African farmers are passionate about their country, their land, their live-stock, and the people they support. Why else would they put their lives at risk the way they do?  The country came to a standstill towards the end of 2017 with nationwide protests concerning the deadly farm invasions.  What about the other factors our government has not considered for the very people that feed our nation? The threat of land claims, support in a time of one the biggest droughts we have ever seen, uncertainty surrounding how Ramaphosa will treat the farmers.  All these make me ask, as farmer’s son, what have my Mum and Dad done to protect themselves ?

Benjamin Graham, Warren Buffet’s mentor said, “Diversification is an established tenet of conservative investment”.  This statement should make you sit up and pay attention and ask yourself:  who is going to look after me? My children? My children’s children?  If I don’t build a safety net around the Rands I have worked so hard for.

Now is the time to seriously consider diversifying a portion of your assets off-shore.  Diversifying your Rands to set up a “safety net” for that just-in-case situation where things don’t work out the way you hoped they would.

With all the challenges you have overcome to build your wealth, have you considered the potential of investing off-shore in a more stable country, such as the U.K., and a more secure currency such as GBP or USD?

If you would like to consider your safety net options and making use of your R10m Foreign Investment Allowance, please get in touch at brandon@northerncrosswealth.com  or go directly to our contact us page.

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