Best Investments in South Africa (2025)
By MoneyToday Team • Nov 25, 2024 • 9 min read
With the rising cost of living and inflation hovering around 5%, simply leaving your money in a bank account means you are effectively losing wealth every year.
To grow real wealth in South Africa, you need your money to work harder than inflation. But where should you put it? The JSE? Offshore? Property? Or Government Bonds? In this guide, we break down the best investment vehicles for 2025.
| Investment Type | Risk Level | Time Horizon | Exp. Return |
|---|---|---|---|
| RSA Retail Bonds | Low | 2 - 5 Years | 9% - 11% |
| Global ETFs (Offshore) | Med/High | 5+ Years | 12% - 15% (ZAR) |
| Local Property | Medium | 10+ Years | 7% - 9% |
| Fixed Deposit | Low | 6 - 60 Months | 8% - 10% |
1. RSA Retail Savings Bonds
Often overlooked, these are loans you give directly to the South African Government. They are extremely safe (unless the entire country goes bankrupt) and often offer better rates than commercial banks.
Why invest here?
- No Fees: There are zero monthly admin fees or commissions.
- Great Rates: The 5-year fixed rate bond currently yields around 10-11%.
- Inflation Linked: You can choose an "Inflation Linked Bond" which guarantees you beat CPI by a set percentage.
2. Offshore ETFs (Exchange Traded Funds)
The JSE (Johannesburg Stock Exchange) represents less than 1% of the world's economy. To truly grow wealth, you need exposure to global giants like Apple, Microsoft, and Amazon.
You don't need millions to do this. Platforms like EasyEquities allow you to buy fractional shares in Global ETFs for as little as R50.
MSCI World ETF
Invests in 1,500+ companies across developed markets (USA, UK, Japan, EU). The ultimate "buy and hold" strategy.
S&P 500 ETF
Invests in the top 500 companies in the USA. Historically one of the best performing indices in the world.
3. Property (Physical vs Listed)
South Africans love property. But buying a physical house to rent out comes with headaches: tenants, maintenance, and rates.
A smarter alternative for many is REITs (Real Estate Investment Trusts). These are companies listed on the JSE that own malls, warehouses, and office blocks. When you buy their shares, you own a slice of that portfolio and get dividends from the rent they collect.
4. Tax-Free Savings Account (TFSA)
This isn't an "asset class" itself, but rather a "wrapper" you put around your investments. Whether you choose cash or ETFs, doing it inside a TFSA adds massive value because SARS cannot touch your profits.
Strategy Tip: Use your R36,000 annual allowance to buy high-growth Offshore ETFs inside your TFSA. Since you pay no Capital Gains Tax, this is the most efficient way to build long-term wealth.
Final Verdict: What should I do?
- 1Emergency Fund First
Before investing, keep 3 months of expenses in a high-yield savings account (like TymeBank or Capitec).
- 2Max Out TFSA
Try to hit your R36,000 limit every year. Buy a global ETF.
- 3Diversify the Rest
Split surplus cash between RSA Retail Bonds (for stability) and Discretionary Stocks (for fun/high growth).