A study done by New World Wealth has revealed that the number of black millionaires has more than doubled in South Africa from 2,300 in 2007 to 4,900 in 2014.
In South Africa's last census taken in 2011 it had a population of 52 million of which 41 million are black South Africans.
While the number has grown significantly in the last seven years, the gap between wealthy black people and their white counterparts is still large considering that the latter makes up 69 per cent of the country’s richest.
The report shows that black people make up 80 per cent of the population but only 10 per cent of them are high-net worth individuals.
“Obviously it is still very low,” Andrew Amoils, head of research at New World Wealth told CNBCafrica.com.
According to Amoils, the trend can be attributed to the opportunities that white South Africans had during apartheid. He warned, however that the number of wealthy individuals is expected to decrease in the medium term.
“[This is because of problems such as the Eskom crisis, labour relations issues and government regulations,” he said. “I mean people are worried about their ownership rights in the country, the core of any wealth structure is based on secure ownership rights.”
Another issue that is set to have a big effect on the number of wealthy people is the current economic climate.
“Wealth growth since 2007 hasn’t been massive and over the last year it has declined and this can be mainly attributed to the depreciation of the rand,” he postulates.
The lack of growth in the medium term is also going to affect younger entrepreneurs.
Amoils says that if people are going to get wealthier at this time then it is going to be people over the age of 40.