South Africa is the wealthiest country in Africa with almost twice as many millionaires as any other African country; this is according to a recent report by New World Wealth.
The report says a well-developed stock exchange and financial services system, a large free media and secure ownership rights, which encourages people to invest in property and businesses in the country were some of the fundamentals encouraging wealth growth.
Over 1,500 African millionaires have moved to South Africa since 2007.
“Most of them have come from Nigeria, Angola and Ghana. Many African millionaires have also bought second residences in South Africa, which they use for business and holiday purposes,” says New World Wealth.
Top class private schools for their children, luxury residential estates, nature, weather and scenery were some of the estimated reasons attracting these millionaires to South Africa.
“We expect over 10,000 African millionaires to move to SA over the next decade, significantly boosting millionaire numbers and luxury spending in SA,” says the report.
The report says, the Real Estate and Construction were the main industries from which South African millionaires have acquired their wealth. This is the primary source of wealth for 20 per cent of local millionaires.
The report also said the fastest growing sectors for South African millionaires over the 2007-2015 period were telecoms, media, insurance and healthcare.
“Other important industries for them include: financial services with 19 per cent, basic materials 11 per cent, diversified 11 per cent, retail 8 per cent, tech and telecoms 7 per cent, FMCG 6 per cent, healthcare 6 per cent, transport & logistics 3 per cent, manufacturing 3 per cent, media 3 per cent and hotels and leisure 2 per cent.
According to our research, there are currently around 17,300 South African millionaires from previously disadvantaged groups, which equates to 45 per cent of South Africa’s total millionaire population.
“It is our view that the SA government will continue to push BEE policies until previously disadvantaged groups make up at least 80 per cent of SA millionaires. We expect this to happen by 2030.”