Offshore investing offers
some very real advantages to
exporters, especially in the
African context, according
to Coreen van der Merwe,
managing director of
Sovereign Trust SA.
“There are several benefits
to offshore investing
including the fact that it
allows for better access
to other emerging market
economies,”
she said.
Speaking
at the
Western
Cape
Exporters
Club
(WCEC)
last week,
Van der
Merwe said
often South
Africans did
not consider
offshore investing because
they associated it with illegal
practices, but this was far
from the truth.
“Not only is offshore
investing perfectly legal – it
is also advantageous as
it is giving you access to
investment in shares and
markets that do not exist
locally."
At the same time, said
Van der Merwe, offshore
investment often resulted in
tax minimisation as many of
the investment destinations
offered tax incentives to
foreign investors while at
the same time it was a good
form of asset protection.
“In Africa in particular
this is important as many
of the markets into which
people are moving are still
very unstable. Also one must
remember
that offshore
investments
can be paid
out anywhere
in the world
and this is
important
as trading in
the rand is
controlled by
the Reserve
Bank.”
She said
already
they were seeing more and
more companies that were
expanding their footprint
into the African market were
investing offshore.
“It is a very affordable
avenue and not reserved
only for big companies
with major funds available,
and the procedures and
requirements are relatively
simple,” she explained.
INSERT & CAPTION
It is a very affordable
avenue and not
reserved only for big
companies with major
funds available.
– Coreen van der Merwe
