Building Global Wealth from South Africa #1: Setting the stage
This is a new post series I'm doing on everything I know about how to operate as a "global citizen" while being a South African resident.
Operating a business and trying to build wealth from South Africa is not for the feint of heart. Local restrictions can seem daunting enough to make you want to run for the hills (or nearest airport).
However, with the right knowledge, tools, and insights, it's less scary than it seems. That's what I'd like to share with you. This is oriented mostly to knowledge work businesses (e.g. SaaS, startups, any -Tech) as well as individuals looking to hedge themselves against local volatility.
This can take on many levels: from just holding a bit of forex on the side, to being fully incorporated and earning funds from outside of South Africa.
I've gathered this information from years of working remotely, researching my tax obligations and options (and consulting with my accountant!), and from collective knowledge from other developer-entrepreneurs who operate with their own unique structures and problems.
Disclaimer: I am not a financial adviser, lawyer, or qualified professional around these matters. Take this information as a launching point to do your own research and consult with professionals.
Note: I'm not evaluating the role of crypto in this series, as I think that that's a larger and different topic to discuss.
Challenges, restrictions, and desired solutions
Some common South African business challenges, when attempting to operate both locally and globally, are:
- Weak currency
- Small/low-income market and buying mentality
- Restrictive exchange controls for money and IP
- Access to funding is not as easy as abroad
- Relatively high corporate & personal tax rate
Normally, there's not much you can do about all this emigrate. For many South Africans that's not a realistic option, or they'd like to/have to stay for other reasons. I'm in the latter camp.
I choose not to add overall bureaucracy to the above list. In my view South African bureaucracy is often really not as bad as you'd think. It could be better, but it could be much, much worse.
Anyway, how do we solve these issues, or at least mitigate them? Can it be done in such a way that doesn't add a huge admin burden?
That's what we'll be investigating over the next 4 posts!
Part 2 will be released on Friday.
Can't wait for the next one to be released on LinkedIn? The complete guide is available on my website, free of charge, in one long post! Check my profile for info.