Sameera Casmod | sameerac@radioislam.co.za
16 January 2024 | 09:47am SAST
2-min read

Picture: Behance

There is no reason to jump ship, says Dawie Roodt, chief economist of the Efficient Group. South Africa is an incredible country with so much to offer, even though it has its challenges.

While acknowledging the challenges faced by citizens, including poor economic growth, political instability, high crime rates, and failing infrastructure, Roodt offers compelling reasons to reconsider emigration.

“South Africa is the most amazing place with the most amazing weather, and we can have a braai and all that sort of stuff,” Roodt said.

Roodt explains that with the right qualifications, individuals can thrive in the local context.

The economist highlighted the evolving nature of economic activities, emphasising the growing prominence of tertiary industries and digital realms. With the rise of remote work opportunities, Roodt pointed out that individuals with the necessary skills can be part of the modern economy without being tied to a specific location.

Addressing concerns about crime, Roodt explained that safety measures can and must be employed.

Roodt also advocates for the diversification of assets.

“There are many ways through which you can diversify your portfolio. You can put your assets in the same portfolio in South Africa and buy a number of various companies as an example… Another form of diversifying is put some of your money in South Africa, but some of your money abroad as well,” Roodt explained.

He recommends careful consideration of structures, such as companies, to facilitate the management and accessibility of assets.

“If you do want to move your assets abroad, and I think you should move a significant chunk of your assets abroad, is that you have to be very careful that you have the right structures,” Roodt said.

Roodt cautions against pursuing job opportunities without prior verification or paying for services online.

He emphasises acquiring skills and qualifications, sharing examples of professionals working remotely worldwide, illustrating the possibilities offered by the digital era.

Discussing taxation, Roodt anticipates significant changes in the global economy, driven by technological advancements and the increasing influence of cryptocurrencies. He notes that the rise of cryptocurrencies will pose challenges for politicians in taxing individuals, citing the difficulty in determining where value is created, especially in a globalised workforce. The example of a person working in Kenya raises questions about tax jurisdiction. Roodt predicts that politicians will face greater difficulties in managing, controlling, and taxing individuals in the future.

“I think what we’re probably going to see is not only developments in the world of technology and the way that the economy is working that will affect the future of the economy. A very important development is…cryptocurrencies [which will] play a huge role in the future. And that’s going to make it much more difficult for politicians to tax us,” Roodt said.

Roodt emphasises that the most important reasons to stay in South Africa are friends, family, food, the weather, which make for a great environment. He urges individuals to migrate their economic activities to the digital world while remaining physically connected to friends and family.

Roodt contrasted South Africa’s relatively low cost of living to countries like New Zealand, where everyday expenses, such as meals, proved significantly more expensive.

Roodt highlights the unique opportunity for South Africans to thrive in their home country. He asserted that staying in South Africa allows individuals to leverage their skills and qualifications, positioning them well ahead in the local context compared to more advance countries.

Listen to the full interview on Sabaahul Muslim with Moulana Habib Bobat.