Investment strategist Magnus Heystek, who is well known for his brutally straightforward views on the economy, has become a cautiously optimistic man. In this interview with BizNews, he shares the positive signs he has picked up from following all the economic indicators – and lists the priorities that remain to prevent a return to the edge of the abyss. “…after 10 years of saying things are bad, I’m saying things are starting to look generally a little bit better, provided the Government of National Unity sticks to its task and manages to cobble a coalition together and do the right things.” However, he adds this warning” “The danger is, of course, that there’s a political fallout as some people have predicted, and the new government falls apart, then the risks are all back on the table.” Meanwhile, he has already invested in more property in South Africa…
Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.
Join us for BizNews’ first investment-focused conference on Thursday, 12 September, in Hermanus, featuring top experts like Frans Cronje, Piet Viljoen, and more. Get insights on electricity and exploiting SA’s gas bounty from new and familiar faces. Register here.
Watch here
Listen here
Highlights from the interview
Investment strategist Magnus Heystek, known for his candid views on the South African economy, expresses cautious optimism. Heystek clarifies that his previous critical assessments were based on facts and independence from major corporations, reflecting the economy’s poor state over the past decade. He mentions that former Reserve Bank Deputy Governor confirmed South Africa’s near-economic collapse two years ago. Heystek notes recent improvements in key economic indicators, likening them to a patient in ICU showing signs of recovery.
One major positive is the absence of nationwide blackouts for 104 days, suggesting improvements in Eskom’s operations, including maintenance and private sector investments in electricity. Additionally, the country has seen a budget surplus excluding interest costs for the first time in 15 years, and legal actions against corrupt politicians are progressing.
Despite these improvements, Heystek advises against repatriating offshore investments due to better returns abroad. However, he acknowledges the potential in local balanced and property funds, particularly in the Western Cape, where property markets are buoyed by wealthy and skilled migrants. Heystek highlights the dire state of residential property outside the Western Cape and poor returns on local pension funds, leading to wealth erosion for the middle class.
Heystek concludes by emphasizing the need for continued focus on infrastructure improvements in railways, ports, and electricity. He remains cautiously optimistic, contingent on political stability and effective governance, which could lead to significant economic recovery in the coming years.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
Michelle joined the Brenthurst Wealth Team in 2025 as a paraplanner assisting Iniel Van Zyl and Leslie Greyling in our Fourways office.
MARIA is a CERTIFIED FINANCIAL PLANNER®️ professional, a member of the Financial Planning Institute of SA and is fully qualified to give advice on all investment matters.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
