Empowerment policies are failing black South Africans in terms of wealth growth while favouring Indian South Africans. These findings emerged from the South Africa 2015 Wealth Report.
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According to the study, there are approximately 46,800 millionaires (HNWIs) living in South Africa as of December 2014 with combined wealth holdings of 184 billion US dollars.
Millionaires or “HNWIs” refer to individuals with net assets of one million US dollars or more.
According to New World Wealth, Indian millionaires in the country far exceeded black Africans.
“The number of Indian millionaires in SA has increased by over 400 per cent since 2000 to reach approximately 6,500 at the end of 2014, whilst the number of African millionaires in SA has gone up by a lower 280 per cent over the same period to reach only 4,900 millionaires at the end of 2014,” said the report.
“This shows that while BBBEE and AA policies are working, they are abnormally benefiting the Indian community.”
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The report contested that the demographics of black and Indian populations demonstrated that there were some anomalies.
“This discrepancy is alarming when one considers that the Indian community now makes up 14 per cent of local SA millionaires, but only three per cent of the national population. Africans, on the other hand, make up 80 per cent of the national population, but only 10 per cent of local SA millionaires.”