Tune out bad news about Africa and chase lucrative investments
Use new pension fund limits to diversify portfolio and take advantage of higher growth rates, writes Paul Clark
The news flow from Africa typically focuses on the worst issues and incidents that occur on the continent. A foreigner following the news from SA over the past few years could not be blamed for thinking that the only game in town in the country is state capture and corruption. However, on the ground across the continent, growth is continuing, infrastructure is improving and business conditions are getting better. As investors who travel across the continent regularly we observe these trends first hand, but these are also clear from surveys and economic measures. The prudential limits that allow pension funds to invest a portion of their members’ funds outside SA were raised by then finance minister Malusi Gigaba when he made his budget speech in February. Specifically, the limit for African investing was raised from 5% of a pension fund’s assets to 10%. These allowances are in addition to the normal offshore limit, which was raised to 30%. So why should South Africans use these new ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.