Transformation of the private offshore wealth management service industry in the emerging economy

Jonathan Chitumbura, Oliver Takawira

Research output: Contribution to journalArticlepeer-review


Dollarisation in emerging economies of Southern Africa like Zambia and Zimbabwe, led High-Income Earning Individuals (HIEI) to invest offshore as an investment diversification strategy. The turbulent past experiences influenced African HIEI behavior in relation to their wealth management approaches. HIEI started looking for ways to protect its financial assets against future political and economic volatilities. The purpose of this study was to equip academics and the wider commercial fraternity with practical and strategic knowledge of the emerging markets’ offshore wealth management services industry. This would assist emerging markets to regulate HIEI markets, boost capital flow, fight tax evasion to allow banks to assist, help governments protect pensions, promote transparency in investments and avoid negative effects of dollarisation. Data were collected from 81 participants including HIEIs with offshore investments, those individuals without, financial advisors, and the Securities Exchange Commission (the industry regulator). The study used a qualitative approach in its methodology using questionnaires, interviews, and a computer-aided system for data analysis. We found that HIEI feels their wealth is under attack and looks towards offshore investing as a refuge. We identified the desperate urge of African HIEIs to secure their wealth as the main influence driving the offshore investing phenomenon.

Original languageEnglish
Pages (from-to)157-165
Number of pages9
JournalJournal of Governance and Regulation
Issue number2
Publication statusPublished - 2021
Externally publishedYes


  • Dollarisation
  • Financial Advisory
  • Financial Statement
  • Offshore Investment
  • Return
  • Risk
  • Wealth Management

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Economics and Econometrics
  • Public Administration
  • Strategy and Management


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