Revelations obtained from the latest world wealth report shows that super rich guys are fleeing South Africa to settle elsewhere. That, according to analysts spells disaster for the country as it was what happened in Zimbabwe before it gained world recognition as one of the most economically troubled countries of the world.
As gathered, the number of high net-worth individuals (HNWIs) decreased by 18% in 2015. The figure nose-dived from 46,800 in 2014 to 38,500 when 2015 ended.
And according to New World Wealth’s 2015 migration survey, more than 950 millionaires in South Africa emigrated in 2015. Among them, 36 percent settled in UK, 15 in Australia and 11 in US. 8 percent went to Canada, 5 to Mauritius and 4 to Israel.
Highlighting that a significant number of HNWIs left the country, Andrew Amoils, head of research at New World Wealth explained that the decline in numbers was mainly due to poor economic conditions in South Africa. “The rand depreciated by 25% against the dollar and the JSE was down 22% in dollar terms during the year,” Fin24 related.
They guys ditched South Africa because of many reasons. Prominent among them however are concerns for their financial fortunes, the unstable social policies, BEE requirements, the need to identify their children with quality factors that will better their future, crime troubles, and even concerns that a family member might be infected with HIV/AIDS.
Below are some of the key highlights obtained from South Africa’s 2016 Wealth Report;
- At the end of 2015, there were approximately 38,500 HNWIs living in South Africa, with a combined wealth of US$159 billion.
- South African HNWI volumes decreased by 10% during the review period (2007 – 2015).
- Growth was negatively influenced by a significant depreciation of the Rand against the US dollar, falling equity markets and the migration of a significant number of HNWIs out of the country.
- 2015 was a particularly poor year for SA millionaires – HNWI volumes declined by 18% during the year.
- Growth is constrained by the current electricity crisis and a rising level of government regulation in the business sector.
In all however, South Africa is the largest HNWI market in Africa.