Holborn Assets offers investors a way out of South Africa's financial crunch

CAPE TOWN, South Africa, Sept. 16, 2020 /PRNewswire/ --

• A webinar on the bleak economic outlook shows need for offshore wealth solutions
• Holborn Assets' new office in Cape Town and adviser expansion positions it to offer new investment options

As South Africa grapples with a looming financial crisis and eroding investor confidence, Holborn Assets (Holborn) has expanded its wealth management offering.

The firm, licenced by the Financial Sector Conduct Authority since 2015, recently opened a new office in Cape Town. It now has around 30 advisers onshore – roughly 50% more than 12 months ago.

Holborn expects to see a greater need – and take-up – of its services as the government struggles to fund an ever-widening fiscal deficit. In response, concerns over the stability of the currency, local banks and capital markets instruments are growing.

This was reflected in a poll taken during a 500-person webinar organised by Holborn and hosted by RW Johnson, the acclaimed author, historian, academic and political analyst.

Of the 290 people who voted on where they see South Africa in 10 years' time, 93% said it would, at best, be half-way between a Zimbabwe hyper-inflation scenario and a Singapore-style economic powerhouse. Notably, 57% predicted it will be closer to the former.

(Access a recording of the webinar: https://www.youtube.com/watch?v=_EJKtkCP7s4&feature=youtu.be)

Running out of options

Entitled "How long will SA survive?", the webinar explored South Africa's fiscal challenges.

Among various predictions, Johnson said he expects a debt crisis in 2021, possibly extending into 2022. "South Africa has had a generation of ANC rule, but the ANC has failed to govern trustworthily," he said. "We have seen six years of falling income and most state-owned enterprises are in a state of bankruptcy."

This is impacting investor comfort, creating a focus among individuals on how to externalise assets.

"Protected structures for South African nationals and expats in the country will enable them to invest globally in tax-efficient ways," says Lourens Reichert, Senior Partner at Holborn Management Services Pty Limited in South Africa.

About Holborn

Established in 1999, Holborn is an award-winning financial services company, specialising in independent advice to expatriates. British family-owned and operated, the firm has over 450 employees worldwide, including 200 advisers.

Holborn Management Services Pty Limited is part of the Holborn Assets group of companies.

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SOURCE Holborn Management Services Pty Limited