Skip to content

Racial spread of SA millionaires

November 14, 2013

New research finds that although South Africa has 7,800 millionaires from previously disadvantaged groups in 2013 – however, this equates to only 16% of South Africa’s total millionaire population.

The authors of the report, New World Wealth, a global wealth consultancy, pointed to that figure as representing a relatively low percentage, considering that these groups make up 90% of the national population.

However, the report, entitled: “South Africa’s 2013 Wealth Book: The Future of South African HNWIs”, found that previously disadvantaged millionaire volumes have risen by as much as 81% over the review period (2007-2013) which is well above the overall rate of 14% for all millionaires.

“Millionaires” otherwise known as “high net worth individuals” or “HNWIs” refer to individuals with net assets of US$1 million or more, excluding their primary residences.

South Africa has the highest number of HNWIs in Africa. As of 2013, there are over 48,700 HNWIs in South Africa with a combined wealth of US$200 billion, accounting for roughly 31% of South Africa’s total individual wealth (US$650 billion), New World Wealth said.

Report author, wealth analyst Andrew Amoils said: “Despite transformation efforts over the past 20 years, South Africa’s wealth distribution remains far from equal.”

Over the four year forecast period, the number of South Africa’s HNWIs is expected to grow by 28%, to reach over 62,400 in 2017.

HNWI wealth will see a larger percentage increase, growing by 30% to reach US$259 billion in 2017, New World Wealth said.

Other key findings:

– South African HNWIs outperformed the worldwide HNWI average during the review period (2007 to 2013), with South African HNWI numbers increasing by 14% whilst worldwide HNWI volumes declined by 0.3%.

– The rise in US dollar based HNWI wealth occurred despite a significant 30% depreciation of the Rand against the US dollar during the review period.

– HNWI growth was positively influenced by a rise in new business formation, particularly in the BEE arena, as well as solid local stock exchange returns and rising commodity prices.

– Growth in HNWI wealth and volumes will be solid over the forecast period as more new businesses are developed within the country.

Source: BusinessTech

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: