Real Estate Investor Magazine South Africa September 2016 | Page 55

political and economic waters. Already, we have seen
the UK’s leadership act with equal parts certainty
and level-headedness. In a Brexit-briefing I attended,
High Commissioner to South Africa, Dame Judith
Macgregor, laid out the party line being taken by
10 Downing Street with regard to Brexit and South
Africa.
The High Commissioner affirmed that the UK
wants South Africa as a strong trading partner. We
are the UK’s largest market in Africa and the UK
is our largest inward investor. It appears to be the
UK’s hope (and surely our own government’s) that,
through an increase in bilateral trade and free-trade
agreements, both countries will benefit.
We may well look back on Brexit in many years and
see that it turned out to be the best thing to happen to
South Africa-UK relations in quite some time.
Why South Africans should start looking at getting
stuck into the UK
I have little doubt that the UK will get back on
track in the long-term. For now there may be a bit
of an investment freeze as market participants wait
for the dust to settle, but this just makes investing in
the UK easier. Keep in mind as well that the UK will
remain in the EU for two years from the date that
article 50 is invoked. So, really, the status quo is here
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for the medium-term, leaving the door open for South
Africans to invest heavily in the UK.
A curiosity of South African investors is that
when the Rand starts to tank you can’t find anyone
willing to stay in the Republic. Six months ago, when
“Nene-gate” rocked our economy and currency, every
person headed straight for the exits – women and
children be damned. Unfortunately, when the Rand
shows strength we tend to remain inside our borders
seemingly hoping to think the good times will never
end. Six months ago money was flying out of South
Africa, but now, with the GBP – ZAR 25% stronger
than it was in December, we are not expecting
thousands of investors to head for the doors into
foreign markets like they did when they were in fullblown panic mode.
This should not be the case, we know what kind
of a country we live in, our currency is volatile and
extremely sensitive to political risk- of which there is
plenty. As such, when the Rand is strong it always a
good idea to diversify your investments.
I am not saying you should divest from South
Africa completely, rather you need to take advantage
of these favourable conditions while you can.

RESOURCES

Sable Forex
SEPTEMBER 2016 SA Real Estate Investor

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