While majority of South Africans anticipate a brighter day, waiting for the sun to shine their way in their shack settlements, the rich are apparently caught up in satisfaction and are disconnected from the realities of the simple South Africans as they enjoy the luxurious comforts their wealth offer them. In a nut-shell, while the many poor hope for a better living condition, the rich thrive and as often said, get richer.
As exposed by the research analysis of the New World Wealth, South Africa is now home to 49,000 dollar millionaires and 2,060 multimillionaires. The former refers to those with net assets of more than $1 million whereas the latter are those who have more than $10 million as net assets.
The analysis equally revealed that the number of millionaires in South Africa increased by 106% while the multimillionaires number increased by 120%. This is an outstanding record especially when compared with the global figures of a 58% growth in millionaires and a 71% growth in multimillionaires.
Where They Live
Speaking for New World Wealth, Andrew Amoils identified that majority of South Africa’s multimillionaires live in Johannesburg. 990 of them are in Johannesburg, 380 in Cape Town, 115 in Durban and 105 in Pretoria. Fin24 buttressed the analysis by highlighting that “the rest of the multi-millionaires – 22% or 460 – live elsewhere in the country, like Knysna and Plettenberg Bay, Stellenbosch, Franschhoek and Hermanus.”
As financial services is the major wealth source for 20% of local multimillionaires, 16% of these rich guys got their wealth from real estate and construction. 14% generated their wealth from basic materials whereas 12% emanated from diversified means.
Amoils narrated that these super rich South Africans gathered “a lot of luxury collectibles over the last decade” which are “luxury investments that hold their value well over time”. Meanwhile news24 reported that aside the estimated R2.3 billion worth of fine art that these multimillionaires own, they also own classic cars, fine wines, luxury watches and rare wild animals like buffalo, roan and sable antelope which are as-well, forms of investment.
In all, South Africa has:
- The highest number of High Net-worth Individuals (HNWIs) in Africa;
- 46,800 HNWIs are living in South Africa with a combined wealth of $184 billion which is roughly just 31% of South Africa’s total individual wealth;
- The depreciation of Rand against US dollar negatively influenced growth;
- Growth was also negatively affected by the electricity crisis, increasing trade union involvement and a rising level of government regulation;
- And from now to 2017, the number of HNWIs in South Africa is estimated to increase to 55,500 as 19% growth is anticipated.