Wealthy S.A families are moving their assets elsewhere - CNBC Africa

Wealthy S.A families are moving their assets elsewhere

Southern Africa

by Trust Matsilele 0

Why wealthy families are moving their assets elsewhere? PHOTO: Pixabay

The firing of South Africa's Finance Minister Nhlanhla Nene, the fall in commodity prices and inconsistency on private property rights, are some of the things worrying investors with regarding to investing in South Africa.

This volatile environment has seen a number of wealthy families moving their assets to more secure markets.

Martin Chesler, Group Chief Executive of Clermont Trust, told CNBC Africa that, it makes sense for one to spread investments across a number of well-performing economies as it was risky keeping their investments in an unpredictable environment like South Africa.

“South Africa has in recent months seen the local currency weakening as a result of slowing commodity prices and poor policy decisions like the firing of Finance Minister, Nhlanhla Nene,” Andrew Flavell from Alpha Wealth said.

[READ MORE:Why millionaires are leaving South Africa] 

“The firing of Nene had a huge impact, though it alone cannot be regarded as the reason that led to the fall of the rand.”

Richard Simpson, Director of Obsidian, also attending the Africa Wealth conference, said the challenges South Africa was facing were closely linked to the slowdown in commodities consumption by China.

“We are in a global industrial recession, partly, because China is consuming fewer commodities.  For us to experience change, China should start accelerating consumption of commodities,” said Simpson.

A number of experts attending the conference confirmed that the rand was undervalued which is also worrying investors intending on entering South Africa.