“There are certain [wealth trends such as in] the financial services industry, [and] there’s definitely some good money being made out of the banking sector, [such as] stock broking. That’s the reported wealth we’re seeing,” MUA insurance Brokers head Warwick Scott-Rodger told CNBC Africa.
“There are obviously a lot of entrepreneurs in the market that are making a lot of money that we don’t know of. There’s a balance of both at the moment, but clearly we’ve got some clever and wealthy individuals in this country.”
Scott-Rodger added that one had to be creative in this day and age in order to take full advantage of wealth-creating opportunities, and combine it with hard work in order to climb up the ladder.
Andrew Amoils from New World Wealth, “In South Africa, based on our measurements – we look at US dollar millionaires so that we can compare across countries – there are just over 48,000 US dollar millionaires in South Africa. About 600 of those have over 30 million US dollars, which are considered ultra-wealthy individuals”.
“That’s just a term that’s been coined because those individuals are so wealthy that they don’t need to think about what they spend their money on. They’re just that wealthy.”
Some of South Africa’s mega-rich have earned their wealth from the telecoms, insurance, healthcare and banking industries.
New World Wealth keeps a database of over 1,000 high net worth individuals and income distribution statistics are observed from each country, which are then put into the company’s model to determine the number of millionaires.
“We also look at asset allocation, so we work with wealth managers and high net worths to work out their asset allocations and what they spend their money on, the demographics [such as] what gender they are, what sectors they’re coming from, what cities they live in and things like that.”
Amoils added that particularly the wealth managers and luxury goods companies are particularly interested in knowing as pects such as where the high net worths are allocated, where they’re attempting to grow, which countries and cities they dwell in and what brands they’re buying.
While Johannesburg is number one to some of the wealthiest South Africans, Cape Town is not far behind. Most of South Africa’s multimillionaires however reside in Sandhurst, Hyde Park, Bryanston and Houghton, which are all in Johannesburg.
“We use primary residence as allocation of where people live, where they work, where their businesses are located, and most of the businesses in South Africa are located around Johannesburg, the Sandton area in particular,” Amoils explained.
“The real estate, retail and fund management sectors are quite big in Cape Town, but a lot of the other sectors aren’t particularly well-developed. Johannesburg has a far broader spread of millionaires across various sectors.”
There is also a concentration of new wealth in Stellenbosch and Cape Town, and wealthy individuals commute between Johannesburg and these regions. Decisions can also be executed in places of residence but after having been birthed in other regions.
“In Joburg, the growth is incredible at the moment. We’re seeing massive growth there purely because there’s serious growth there. There’s serious wealth there. The money is being made maybe primarily in Joburg but you can’t discount Cape Town, there are a lot of clever business men,” said Scott-Rodger.