THE REASONS FOR INVESTING OFFSHORE: A SOUTH AFRICAN PERSPECTIVE

Download This Article

Ntwanano Jethro Godi, Athenia Bongani Sibindi ORCID logo

https://doi.org/10.22495/cocv11i4c5p7

Abstract

The value growth of some domestic investments have far exceeded that of offshore investments in recent years, which has led to some investors asking this question: What is the point of investing offshore? The long-term case for diversifying offshore seems to remain powerful even though the domestic currency might strengthen. Investing in multi-currency vehicles that diversify offshore risks across a range of currencies could be vital for offshore investors. As such, this paper aims to identify and rank in order of importance the reasons why South African investors invest in foreign countries. This paper will be based on a literature review as well as views and experiences of South African investment brokers registered with the Financial Services Board.

Keywords: Risks, Reasons, Investors, Offshore Investments, Foreign Market, Investment Pitfalls, Diversification

How to cite this paper: Godi, N. J., & Sibindi, A. B. (2014). The reasons for investing offshore: A South African perspective. Corporate Ownership & Control, 11(4-5), 489-498. https://doi.org/10.22495/cocv11i4c5p7