Investing certainly has multiple benefits: create wealth for yourself and your family, create financial security, prepare for unforeseen circumstances, and create passive income streams. Making investments even more attractive, is when not only you benefit but you can invest for a bigger purpose; when your investment can contribute to making South Africa a better country for everybody, when other people and the economy can benefit too. These types of investments are growing in popularity, and you can choose something that you can relate to.
Three types of investments where you can invest for a purpose:
- Invest in a small business
Small businesses are the lifeblood of the South African economy, but small businesses often need funding or investors to grow, which is not always easy to obtain. If we can help small businesses to become sustainable, we can help to create jobs, boost the economy, reduce poverty, and reduce crime. Businesses can offer some of the best returns on your investment and quite often you don’t need to invest a substantial amount of money.
- Impact farming
Investing in farming ventures are growing in popularity. With this type of investment, you also contribute to create food security and support the farming communities. There are multiple impact farming ventures to choose from – blueberries, pecan nuts, solar power, honey etc. Most of these ventures also offer good returns.
- Property development
Housing is an ever-growing need in South Africa with our growing population. If investing in property appeals to you but you either don’t want to invest for the longer-term, you feel uncertain about the future of property in South Africa or you don’t want to deal with the hassles of rent collection and maintenance of physical property; investing in property developments might be a good option for you. Your investment will assist to create more residential property developments. These developments also offer lucrative returns over a shorter period.
These are three investments you can consider if you do want to invest for a bigger purpose – also making a difference in the lives of others. Like with all investments, ensure that you do proper research before making any investment decisions. Talk to an expert. Consider all the important factors – your goals, investment term, liquidity, fees, tax, returns etc. Most importantly, perform the necessary checks to avoid getting involved with scammers.
Investing certainly has numerous benefits for you, but if you can earn good returns and make a positive contribution to our beautiful country it becomes much more rewarding. Invest local, because ‘local is lekker’!
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Written by: Ronel Jooste