Are S.Africa’s wealthy looking to relocate? - CNBC Africa

Are S.Africa’s wealthy looking to relocate?

Southern Africa

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Ten per cent of wealthy or high net worth individuals in South Africa are looking to relocate.

This is according to the Barclays Wealth Insights report, which indicated that mobility among the wealthy is increasing.

“What you need to do is look at the different reasons for why they’re looking to relocate. Ten per cent of wealthy or high net worth individuals in South Africa are looking to relocate,” Winston Monale, head of wealth coverage at Barclays Africa’s wealth and investment management division, told CNBC Africa.

“Seventy-eight per cent of them are looking for educational opportunities for their children and the best universities, some of the best schools will typically be found in more developed, Western economies like the US and parts of Western Europe.”

(READ MORE: S.Africa’s mega-rich continue to make bank)

According to Monale, the qualifying criteria measurement of one who is wealthy is one and a half million dollars of net investible assets or approximately 15 to 16 million rand in South African terms.

“What’s becoming quite apparent is that wealthy individuals are looking for opportunities outside of their own market,” he said.


“What we find is that in emerging markets, the trend to move out into other geographies, into other locations is a lot higher than what it is in more developed economies.”

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The report further revealed that as high net worth individuals move around more, they feel a growing sense of becoming multinational.

It also showed that entrepreneurs value mobility more highly than other wealthy individuals and that mobile individuals would have to manage complex financial planning issues to reap the benefits of holding global asset portfolios.

“One of the reasons we decided to conduct this research [was] to understand why they are looking to relocate, where are they moving to, are they looking for the economic opportunities and how we, as a global organisation, can help support them and provide them with the assistance that they need,” Monale explained.

“We find that they typically invest in the countries they relocate to. One has got to look at, try to ascertain why they’re looking to relocate and provide them with the relevant wealth and investment management advice.”