Discover why South African investors are increasingly seeking secure, stable crossborder investment opportunities in this insightful Q&A with Dr. Rufaro Nyakatawa, Market Development Consultant – Africa at Jersey Finance. She explores key trends, regulatory considerations and the role of international finance centres in supporting long-term wealth growth and asset protection.
How does the collaboration between Jersey and South Africa provide enhanced financial cross-border solutions?
The collaborative relationship between Jersey and South Africa has fostered a robust platform for cross-border financial solutions, underpinned by Jersey’s expertise as an international finance centre (IFC) with a global outlook. As demonstrated through Jersey’s facilitation of over £1.4 trillion in global capital, the jurisdiction significantly contributes to international economic output—an estimated £170 billion.
This capacity allows Jersey to offer South African clients a safe and sophisticated environment for cross-border investments, supported by a well-established infrastructure and direct connections to key global markets.
For more than two decades, prominent South African financial institutions like Standard Bank, Alexander Forbes, Ashburton Investments, and Nedbank have maintained a presence in Jersey, highlighting a mutually beneficial relationship. Regular travel and business exchanges between South Africa and Jersey reinforce this connection, with direct flights to major UK hubs enabling efficient travel for professionals and clients alike. Jersey’s established relationship with the UK and the City of London further strengthens its position as a trusted destination for wealth management and capital-raising activities, providing South African clients with seamless access to global financial solutions.
What are the evolving needs of South African residents and emigrants regarding compliance and financial security?
In an era of political and economic uncertainty, compounded by rapid technological advances and a global climate crisis, ultra-high net worth and high-net worth South African residents and emigrants and their advisers increasingly seek stability and security in their wealth planning strategies.
Jersey’s IFC has been at the forefront of global finance for more than 60 years. Its strong and respected regulatory framework and world-class reputation have been endorsed by independent bodies and institutions of the highest standards, making it a natural choice for globally-focussed clients and investors. In fact, Jersey’s latest MONEYVAL assessment, published in July 2024, found the Channel Island ‘compliant’ or ‘largely compliant’ with 39 out of 40 recommendations set out by Financial Action Task Force (FATF). That puts Jersey at the very top compared to other large and small jurisdictions that have undergone this sort of evaluation. Few jurisdictions worldwide achieve this level of technical compliance in their Mutual Evaluation Report. In addition, Jersey was assessed highly as regards the effectiveness of its implementation of the FATF Recommendations.
The demand for diversified and protected assets is driving clients to jurisdictions like Jersey, where a well-established legal framework and cross-border expertise are readily available.
What role do IFCs play in wealth planning, especially considering the UK's tax changes, for South Africans with ties to the UK?
As wealth grows and evolves, IFCs like Jersey have become increasingly essential in wealth planning for South Africans with ties to the UK, particularly amid recent UK tax changes. While it is too early to gauge specific trends resulting from these changes, it is clear that South African clients are seeking wealth planning strategies that reflect best international practices.
The demand for diversified and protected assets is driving clients to jurisdictions like Jersey, where a well-established legal framework and cross-border expertise are readily available.
Several factors are impacting the decision-making of modern private wealth clients across the globe: the next generation, geographically dispersed family members, the broadening of business activities, the diversification of investments, digital assets, ESG and philanthropy. As a result, these clients seek out sophisticated, reliable and adaptable financial jurisdictions – and this is where Jersey’s IFC can play a vital role for South African clients, supporting their wealth management strategies with a focus on stability and future-facing opportunities.
Jersey’s robust regulatory framework, combined with its innovative and commercial approach, meets the scrutiny demanded by today’s clients while fostering a dynamic business environment.
Why does Jersey remain an attractive choice for South African clients, particularly in terms of its tax neutrality, regulatory oversight, and expertise in estate planning?
Although tax considerations are no longer the primary motivator for choosing an IFC, private wealth clients value Jersey’s reputation for stability and integrity. Our flexible structures and knowledgeable professionals ensure that complex financial arrangements are effectively managed.
Jersey’s robust regulatory framework, combined with its innovative and commercial approach, meets the scrutiny demanded by today’s clients while fostering a dynamic business environment.
Additionally, Jersey’s commitment to technology and innovation—demonstrated by having some of the fastest broadband speeds in the world—enhances its appeal, as families increasingly prioritise connectivity and digital accessibility when selecting an IFC partner.
