The mere suggestion that the government is considering attaching a portion of South Africa’s pension pool to fund state expenditure has inspired panic. And those with money are diverting their green backs to safer shores. For those without so much to lose, hiding the money under the mattress is starting to sound like a good idea.
South Africans, either directly or via institutions which invest on their behalf, have been investing a portion of their savings abroad since 1994 when foreign exchange control restrictions were first eased.
The South African Reserve Bank (SARB) regularly publish a record of all economic transactions between South Africans in a Big-brother-is-watching-you-manner and the world at certain periods in more than 60 categories.
Individuals who have R1-million per year at their disposal are are investing offshore via foreign currency-denominated unit trusts.
The poor shall inherit the earth, but not the mineral rights to it? – Ed
Info: Sasha Planting DM. Bad taste remarks by Alex Rose-Innes.