Key takeaways

• Purpose first: offshore and onshore should balance diversification, access, and legal protection, not secrecy.
• Match currency and use: keep operating cash where you spend it; hold investment/legacy assets where access, stability, and custody are strongest.
• Substance & compliance: proper records, reporting, and decision-making lower tax/legal risk.
• Simple beats complex: start with a minimum-viable structure; scale only when benefits are clear and quantified.
• Governance is the glue: defined roles, successor signatories, and a living data room keep the plan working beyond any one person.

Market context

African HNWIs—especially in Tanzania—often live cross-border lives: businesses and property at home, schooling/healthcare abroad, and portfolios across multiple custodians. FX swings, evolving regulations, and occasional bank de-risking make it essential to combine local familiarity with offshore access and continuity. A clear structure protects capital, simplifies reporting, and speeds decisions when conditions change.

What “offshore” and “onshore” actually mean

Onshore is your domestic footprint—local bank accounts, operating companies, and real estate held under home-country law. Offshore is a legally established presence in another jurisdiction—typically a custody account, trust, or holding company—used for diversification, market access, and continuity. Both are legitimate when well-documented, compliant, and aligned to real economic activity and family needs.

When to use each

• Onshore: day-to-day spending, payroll, local real estate, and operating companies that need local licensing and relationships.
• Offshore: global portfolios, USD tuition/healthcare reserves, co-investments with international partners, and succession vehicles that require neutral, stable administration.

Common structure patterns

• Domestic business + family trust: Onshore operating company; offshore holding company owns marketable investments; discretionary trust (with letter of wishes) for succession and governance.
• Education & healthcare reserve: Offshore USD custody account with a staged FX plan; trustee or protector oversees access rules for major expenses.
• Dual-custody portfolio: Onshore TZS account for local instruments; offshore global custodian for equities, bonds, funds, and alternatives; consolidated reporting via planning software.
• Philanthropy sleeve: Charitable trust or foundation with clear grant guidelines, seeded from portfolio income with annual review.

Tanzania & regional nuances

• KYC/AML readiness: keep certified IDs, proof of address, and source-of-wealth files current for both local and offshore institutions.
• Currency policy: match liabilities to income; avoid unhedged USD debt against TZS income; schedule conversions for large USD needs (tuition, medical).
• Jurisdiction choice: prioritize stability, strong regulation, and service quality over low fees; understand reporting (beneficial-owner registers, economic-substance or equivalent rules).
• Tax coordination: align with local counsel/CPA so cross-border structures remain compliant and tax-efficient for your situation.

Playbook for HNWIs

• Map assets, liabilities, and cash flows by currency and jurisdiction; note who depends on what.
• Choose custody: pair a reliable local bank with a top-tier offshore custodian; enable consolidated reporting.
• Select vehicles: where appropriate, use a trust, holding company, or insurance wrapper with clear roles (trustee, protector, directors).
• Mandates & access: define signatories, successor signers, and emergency powers; store documents in a secure digital vault.
• Policies: adopt an Investment Policy Statement and FX policy so decisions follow rules, not headlines.

Execution guidelines

• Minimum-viable structure first; add entities only if they materially reduce risk or improve access.
• Annual review: governance checks, fee audit, residency changes, and regulatory updates.
• Operational hygiene: strong MFA/hardware keys, tested backups, and documented settlement instructions across banks and custodians.
• Consolidated reporting: one dashboard for net worth, positions, cash flows, and fees across onshore and offshore accounts.

What to avoid

Over-engineering with too many entities, secrecy-driven setups, single-bank dependency, unhedged currency mismatches, and ignoring reporting obligations.

Bottom line

Stability comes from clear purposes, compliant structures, diversified custody, and strong governance. Blend onshore familiarity with offshore access so your wealth is spendable at home, investable globally, and durable across generations.

Contact Hament for a tailored onshore-offshore plan—custody, vehicles, FX policy, and governance—built around your family and businesses.

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