How I spend my currency … with Zwelakhe Mnguni

Driven by resilience and persistence, Zwelakhe Mnguni’s journey from humble beginnings in Sebokeng in the Vaal, where he worked for four years as a security guard to finance his education, has culminated in a distinguished career in asset management.

Today, Mnguni is the co-founder and chief investment officer of Benguela Global Fund Managers, an entity with more than R7.2bn in assets under management. Drawing on two decades of extensive experience in the industry, Mnguni offers valuable insights on investing, emphasising the importance of portfolio diversification and the benefits of starting early, no matter the initial investment amount.

If money could talk, what would it say about your spending habits?

It’d probably give me a pat on the back for being careful with it. It might say, “Zwelakhe, you’re pretty good at keeping me in check, focusing on investments and long-term goals. But hey, it’s okay to treat yourself now and then!” However, I lean towards saving and investing, though I’m not above the occasional splurge when it makes sense.

What’s the most significant financial lesson you’ve learnt from your own investment experiences?

The biggest lesson I’ve picked up is that diversification is a lifesaver. Spreading investments across different assets – stocks, bonds, maybe some property – helps weather market storms. Back in 2020, when markets tanked, diversified portfolios bounced back 15% faster than those heavy on stocks alone (JSE data). South Africa’s market can be a roller coaster, with the JSE all share index swinging wildly (15.3% volatility over the past decade), so mixing things up keeps returns steady.

If there’s a stock you wish you would’ve invested in earlier, what would it be and why?

I kick myself for not jumping on Naspers sooner. Its share price climbed from R1,200 in 2015 to about R4,500 by 2025, a 14% annual growth rate (Bloomberg, 2025). Its stake in Tencent was a game-changer, riding the global tech wave. Back in the mid-2010s, Naspers was undervalued, with a price-earnings ratio under 20 (compared to 35 now). It’s a classic case of a South African gem I should’ve grabbed earlier.

What’s the most extravagant purchase you’ve ever made, and do you still think it was worth it?

My most extravagant purchase was a Mercedes ML63, which I regret every day of the week. The power/fuel consumption relationship is “cockeyed”.

What’s an unconventional asset class you’ve considered investing in?

I’ve been eyeing private equity in South African tech start-ups, especially in fintech and agritech. South Africa’s start-up scene is buzzing – $1.2bn in venture capital flowed in during 2024 (Partech Africa). Companies like Yoco are tackling financial inclusion, while Aerobotics boosts farming efficiency. It’s a risky, illiquid space, but the potential 20%-30% returns are tempting. Investing through a fund helps spread the risk while tapping into Africa’s digital growth.

What advice would you give to young professionals about building wealth and managing their finances?

Here’s my take:

• Save and invest early: Even small amounts in a retirement annuity or tax-free savings account add up. At 8% growth, R100,000 can become R466,000 in 20 years.
• Don’t overspend: Keep lifestyle costs below 30% of your income to avoid the debt trap many South Africans face.
• Mix up income sources: Side hustles or rental income are great, especially with the gig economy growing 15% last year.
• Keep learning: Check out the JSE’s investor education hub or similar resources to stay sharp.
• Be smart with debt: Stick to low-interest loans like mortgages (about 10%) and steer clear of pricey credit card debt (20%+). It’s about discipline and starting small – South Africa’s economy rewards those who plan ahead.

What is your retirement plan?

I’m building a retirement plan that balances security and comfort. I’m maxing out contributions to a retirement annuity, aiming for a nest egg that grows at 8% annually. My portfolio is split: 60% in stocks (global), 30% in South African bonds, and 10% in alternatives like property or private equity, targeting 7%-9% returns. The goal is to cover 70% of my current lifestyle in retirement, using a safe 4% withdrawal rate. South Africa’s tax breaks and property market help, but I diversify globally to hedge against rand volatility.

What financial trend do you think is overrated, and why?

I think the crypto craze is a bit overhyped. Sure, bitcoin’s returned 20% annually since 2015, but its wild swings (50%+ volatility) and South Africa’s murky regulations make it a gamble. Stocks and bonds give better risk-adjusted returns – a Sharpe ratio of 0.8 versus 0.4 for bitcoin (Morningstar, 2025). Crypto’s fine as a small, speculative bet (under 5% of your portfolio), but it’s not the golden ticket some claim.

If you could give your younger self one piece of financial advice, what would it be – and would you actually listen?

I’d tell my younger self: “Start investing now, even if it’s just a little – compounding is magic.” Investing R5,000 a month at 8% from age 25 to 45 grows to R3.1m, compared to R1.2m if you start at 35. Honestly, my 25-year-old self might’ve brushed it off, distracted by career and lifestyle goals. But if someone had shown me the numbers or I’d had a mentor, I’d have listened.

How can South Africa achieve widespread financial literacy and inclusion?

South Africa’s got work to do, but here’s how we can boost financial literacy and inclusion:

• Speak local: Use community leaders and languages for trust. SABC’s 2024 radio campaigns hit 10-million listeners with finance tips. Income inequality is a hurdle, but steady effort can push banked adults from 77% to 90% by 2030.
• Get it in schools: Teach budgeting and investing from grade 7. Gauteng’s 2024 pilot programmes lifted financial know-how by 30%.
• Team up: Banks, fintechs and NGOs can offer free workshops.
• Use tech: With 95% mobile penetration in South Africa (GSMA, 2025), apps like mobile banking can reach rural areas.
• Support policy: Tax breaks for low-cost savings accounts and rural banking subsidies can help (the Reserve Bank is aiming for 90% banking access by 2030).

ALSO READ: