Nowadays, globalisation has gotten to the point where one concept or innovation tremors around the globe in a matter of years. If an idea is deemed good in one country, providing it is acceptable to the other country’s culture, then the idea tends to disseminate across the globe and Africa is no exception. Equity release is a great concept that started out in the UK as a lifetime mortgage and home reversion plan and then headed to North America in the form of a reverse mortgage.
However, despite being a great concept, equity release has yet to reach Africa; not even Johannesburg or the main cities scattered throughout the Continent. This writer personally believes that the finance ministers need an education in how to make the most of equity release in Africa; as it is potentially a great opportunity and tool in the retirement arsenal for those over a certain age to use in times of struggle.
The world has always struggled with disseminating information to Africa, yet with the right education, equity release as a retirement product could flourish. It is for the leaders of Africa to educate the children about how equity release will play an important role in their futures.
Equity release is no different from any other financial mechanism that Africa seems alien to and this is what needs to change if there is going to be significant progress in the financial elements of the continent. The library needs to be stocked with books and journals on all the sorts of progress that other countries around the world have made and these can then be referred to in times of reflection.
