Where are S.Africa's rich migrating to ? - CNBC Africa

Where are S.Africa's rich migrating to ?

Southern Africa

by By Trust Matsilele 0

South Africa's HNWIs are migrating to North America and Europe. PHOTOS: youtube

Over the past 14 years South Africa has seen an outflow of about 8,000 high-net-worth individuals (HNWIs). Most of them have moved to Australia, the UK, Cyprus, Mauritius, the USA and Canada, according to a survey by New World Wealth, a consultancy that focuses on the global wealth sector in high growth markets.

Another African country that has seen a similar outflow is Egypt with 7,000 rich people leaving its borders.

The survey was conducted by comparing the domicile of a sample of approximately 60,000 global HNWIs in 2000 with the same sample in 2014.

(READ MORE: S.Africa has 46,800 millionaires, Indians ahead of blacks: report)

Nadia Read, head of world residence and citizenship platform LIO Global said since the turn of the century, large numbers of global HNWIs have sought out second citizenship.

“The main reason people apply for a second residence or citizenship is to ensure freedom of global mobility and access, as well as security and wealth protection for their families," said Read.

The majority of millionaires globally typically look towards the European Union. Cyprus and Malta, in particular... as they offer direct citizenship without long waiting or residence periods, she adds.

(READ MORE: Africa has the fastest growing amount of rich people)

“Portugal’s Golden Residence Visa, as well as the Hungarian Residence Bond programme, has also seen significant interest, as they offer investors residence in exchange for a smaller investment. The Caribbean has also recently seen strong demand as countries such as Antigua and Barbuda or Grenada offer direct citizenship in less than six months."

According to the report, Singapore was also attracting HNWIs due to location as it was near fast growing HNWI markets such as China, Indonesia and India and also low tax structure.