The number of millionaires living in South Africa – and where they stash their money
6.7% of registered taxpayers are rand millionaires, earning over R1 million per annum, and most of their money is stashed away in offshore investments, equities and unit trusts, and real estate.
According to Henley & Partners in its ninth Africa Wealth Report, South Africa has lost over 11,000 millionaires in the past decade, which is 20% of its millionaire population.
Henley & Partners attribute this decline to a lack of personal safety and security, while the local economy’s poor performance has made it hard to create new wealth.
As a result, many of South Africa’s elites have left the country for places with more stable politics and personal safety.
Additionally, the group’s latest Wealth Migration Report 2024 shows that South Africa remains one of the major millionaire outflow countries, with an estimated 600 high-net-worth individuals (HWNIs) expected to leave the country in 2024.
NWW defines HWNIs as individuals with a liquid investable wealth of US$1 million (~R18 million) or more.
However, while many rich South Africans have chosen to leave the country, many still find the country an incredibly attractive place to live.
Despite its challenges, South Africa offers warm climates, picturesque landscapes, and affordable living costs.
The latter is a major positive for rand millionaires who would otherwise have to sacrifice their standard of living to live in a euro, pound, or dollar-dominated economy.
When you consider a millionaire in rand terms, South Africa has almost 500,000 millionaires who still call the country home.
This is according to the National Treasury and the South African Revenue Service (SARB) tax statistics for the 2024//25 financial year.
The data showed that 490,676 South Africans earn over R1 million per annum. This equates to roughly 6.7% of registered taxpayers for the current financial year, which stands at 7.4 million.
However, living in South Africa and taking advantage of its standard of living benefits doesn’t mean you have to keep your money in South Africa.
Where their money is stashed
Economist Dawie Roodt agrees, saying South Africa is an exciting place to live and far more affordable than most developed countries.
“South Africa is a very special place. The first thing I did after returning from New Zealand was to buy a proper steak for a third of the price,” he said.
However, despite the positives, Roodt emphasised to those considering staying in South Africa the importance of careful future planning and awareness of the country’s risks.
Regarding financial matters, Roodt recommended that South Africans maintain a diversified portfolio, with a significant portion invested internationally.
Data from Standard Bank align with Roodts’ advice and reveal that rich South Africans are already doing this, and for good reason.
According to the bank, affluent South Africans earning over R1 million annually tend to diversify their investments across several key areas, including:
- Equities and Unit Trusts: Many invest in local and international stocks, as well as unit trusts. The equity market offers significant growth potential, especially for those with long-term investment horizons
- Money Market and Multi-Asset Funds: With South Africa’s high-interest-rate environment, money market funds have become attractive for their relatively stable returns. Multi-asset funds, which combine equities, bonds, and other assets, are also popular to manage volatility and achieve balanced growth
- Real Estate: Both residential and commercial property remain key investment vehicles. High-income earners seek to capitalize on property appreciation and rental income despite recent market challenges
- Offshore Investments: Many high earners are increasingly looking at offshore investments to hedge against currency risks and diversify portfolios. These include international property, stocks, bonds, and investment accounts in major foreign currencies.
Standard Bank said that multi-asset funds and offshore investments have gained notable popularity among these types of investments.
“Offshore investments allow individuals to maximise returns, reduce volatility, and hedge against currency fluctuations,” the bank said.
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