South Africa’s Growing Appeal as a Global Safe Haven

As geopolitical and economic certainties collapse, new wealth havens are emerging in unexpected places — with South Africa standing out as one of Africa’s most resilient and strategically positioned contenders. The global economy is a complex puzzle. This puzzle, however, is being dismantled by geopolitical uncertainty, rising populism, kinetic wars in Europe and the Middle East, and policy uncertainty in the USA. These forces are pushing many individuals and families who are looking for a safe home base to consider relocating to destinations that until recently were regarded as unfavorable. This raises the question: Can South Africa become a safe haven home for affluent individuals? To answer this, we need to understand the current global economic environment.

Fragmenting the Old Model

Trade, long the binding force of the global economy, has struggled to recover in the post-pandemic era as Covid-19 lockdowns decimated supply chains. Geopolitical upheaval and a surge in nationalism broke further fractured trade relations. Most recently, US President Donald Trump’s renewed tariff war has dealt what many see as a final blow to the open-market model that has sustained global economics for the last 25 years. Economists are now questioning whether the world’s trading partners will be able to gather up the pieces to rebuild the puzzle — or is the old puzzle beyond repair?

America: Severing Ties

The USA has always been the anchor of the Western-led liberal order. However, President Trump’s protectionist actions and tariffs have effectively severed the anchor and set America on an independent, nationalist, internally focused journey. This has eroded global trust in the US administration, its treasuries, and the dollar. The USA has become a volatile and independent counterpart as it has, in many ways, ‘Brexited’ from the world, standing firmly on its own as an economic island.

Trump’s belief that tariffs will solve America’s trade deficits is flawed. America’s declining industrialization has been happening for the last 50 years owing to a variety of factors — not only because China produces goods more cheaply. There has been a cultural shift towards services and outsourcing and applying technology that leads to higher productivity. De-industrialization won’t be reversed by slapping 15% tariffs on Japan and Europe, or 30% on China. All this approach will do is saddle US consumers with higher prices.

South Africa: Covering Its Bases

So, how does South Africa fit into a reimagined global economic puzzle? On the surface, its relationship with the USA appears precarious. A series of foreign policy decisions have raised the ire of the USA, placing South Africa in the crosshairs of several key US policymakers. This increasingly strained relationship adds uncertainty to the country’s political future and risks amplifying nationalist rhetoric at home.

Fortunately, South Africa has long been open to fostering relations with non-Western and non-US allies, a stance that has drawn significant criticism from Washington, but ultimately work in its favor. As former finance minister, the late Tito Mboweni stated in 2021: “We must avoid being caught in a new Cold War. South Africa’s interests are best served by engaging with all — not by choosing sides.”¹ As the world rebuilds its puzzle of alliances and trading partners, Mboweni’s words might prove remarkably prescient.

South Africa has also maintained open, diversified export markets and is not over exposed to the USA. Only 8%² of its exports go to the USA, and approximately half of that consists of precious metals and other tariff-free commodities. While certain sectors such as citrus, wine, and automobiles will likely feel the effect of Trump-era tariffs, South Africa remains relatively insulated from broader global trade fallout.

A Strategic Home for the Globally Mobile

Understanding South Africa’s place in this evolving global economic puzzle also highlights its potential appeal for wealthy international families. According to the Africa Wealth Report 2025, the country is home to 41,100 US dollar millionaires, more than double the number in any other African nation. Its Achilles heel remains safety and security, but affluent communities are often able to insulate themselves and enjoy a high quality of life on the Southern tip of Africa. From a livability perspective, South Africa’s metro areas offer modern infrastructure and amenities that support a lifestyle comparable to top global cities. Cape Town, for instance, was recently voted the ‘Best City in the World’ for the seventh time in the past 11 years in the 2025 Telegraph Travel Awards. South Africa’s centra time zone also offers a strategic advantage, enabling real-time engagement with markets across the Americas, Europe, the Middle East, and Asia.

On the global political and economic stage, South Africa also holds its own. It is not involved in, or target by, any of the major conflicts currently destabilizing parts of the world. While the country’ has a volatile political discourse is often volatile, it is underpinned by a strong constitution and well-regulated financial markets with ample liquidity. South Africa prides itself on its robust banking system, which is globally connected, and widely respected. Meanwhile, the Johannesburg Stock Exchange — one of the largest and most sophisticated in emerging markets — reflects global rather than purely domestic dynamics, with roughly two-thirds of its listed companies driven by international assets or revenue.

Together, these create a solid foundation for affluent individuals seeking a high quality of life, alongside seamless access to global financial markets and international connectivity.

Sources

¹ The statement by Tito Mboweni was made during public comments discussing US–China rivalry following the 2021 BRICS Summit.

² Econometrix Webinar, 17 July 2025.