Why offshore investment is essential for the elite amid rising inflation

SOUTH Africa is navigating an increasingly uncertain macroeconomic landscape. Inflationary pressures, sluggish growth, high unemployment, and persistent structural failures are coalescing into a difficult reality for investors and entrepreneurs alike.

- WILLEM OBERHOLZER

For high-net-worth individuals, the risks are compounded by rising fiscal desperation and regulatory volatility.

Inflation, once thought to be a temporary consequence of global supply shocks, has revealed deeper vulnerabilities in South Africa's economy. Persistent currency depreciation, inefficient state expenditure, and rising administered prices have made it clear that inflation is becoming entrenched.

The South African Reserve Bank is constrained, tightening too much risks growth; doing too little risks credibility. Neither option resolves the structural deficit that continues to grow.