At the end of 2015, there were 38,500 millionaires in South Africa (people with a net worth over US$1 million) – down 18% from 46,800 recorded at the end of 2014. Of these High Net Worth Individuals (HNWIs), 2,030 are multi-millionaires (with a net worth of US$10 million or more).
But who are the wealthy? Where do they live? How did they make their money?
These are the 5 things you need to know about South Africa’s super-rich:
How did they make their money?
According to Nedbank’s 2015 Giving report, the estimated total population of high net worth individuals in South Africa was approximately 105,000 in 2015.
Of these, 48% of these high net worth individuals cited earnings from profession or career as their main source of wealth.
This was closely followed by Family-owned business or startup company’s which made up 32% of earnings.
This is how the rest of South Africa’s super-rich made their money:
Earnings from profession or career
Family-owned business or startup company
Growth in investment assets
Spouse’s or partner’s earnings from profession or career
How do they spend their money?
According to a recent report by Standard Bank, South Africa’s highest-earning houselhold’s biggest expenditure is “Transport”, which includes the purchase of new vehicles as well as airline travel.
Health expenditure is 6.7% of budget. The higher allocation to health highlights the fact that a higher income earners can prioritize health. If the proposed tariff on pharmaceutical products is approved this would have a relatively bigger affect on upper income groups.
Housing, water, electricity and gas make up 4.3% of the upper income budget. Furniture and household equipment purchases are also quite strong in this category at close to 6%.
There is an 8.8% budget allocation to recreational activities. This is the highest of any income group.
This is how South Africa’s ultra-rich spend the rest of their money:
Where do they live?
New data from New World Wealth, in association with MasterCard, recently revealed which South African suburbs are home to the most super-wealthy citizens.
By the end of 2015, there were 38,500 millionaires in South Africa (people with a net worth over US$1 million) – down 18% from 46,800 recorded at the end of 2014.
Of these High Net Worth Individuals (HNWIs), 2,030 are multi-millionaires (with a net worth of US$10 million or more), who are largely settled around the country’s economic hub – Johannesburg.
According to NWW, Joburg is home to 970 multi-millionaires – almost half (47%) of the multi-millionaire population. This is followed by Cape Town, with 360 multi-millionaires (18%) and Durban, with 120 (6%).
This is where the rest of them are living:
The study also broke down the suburbs which boasted South Africa’s wealthiest:
|Constantia and Tokai||30||CT|
Where do they go on holiday?
Data from research firm New World Wealth recently revealed which towns in South Africa are the most sought after by the super-rich for their second homes.
According to NWW Plettenberg Bay is the top town in South Africa for super-rich individuals who have a second home, with around 260 multi-millionaires owning an additional property there.
Most of the homeowners in Plettenberg Bay are from Johannesburg and Cape Town,
“Plett also boasts over 120 homes valued at R20 million or more, the highest of any town in SA with the exception of Johannesburg and Cape Town,” said NWW.
Other popular spots are Umhlanga and La Lucia in KwaZulu-Natal, Knysna, along the Garden Route, and Stellenbosch in the Western Cape.
This is where the rest go on holiday:
|#||Town||Area||No. of super-rich with second homes|
|1||Plettenberg Bay||Garden Route||260|
|2||Umhlanga & La Lucia||KwaZulu-Natal||250|
What do they do for fun?
According to Wealth-X, a company that conducts research on the ultra-wealthy, the favourite pastime of the ultra-wealthy is charity.
Specifically, Philanthropy is the primary passion amongst global billionaires, with more than 56% of total billionaires either undertaking or interested in pursuing philanthropic activities.
The second and third most popular interests are travel and art: 31% of today’s billionaires report travel as a passion, while 29% report art.
Below are the 20 most-popular hobbies of the world’s super-rich:
|4||Fashion and style||25.2%|
|6||Wine and spirits||15.9%|
|8||Health and exercise||14.8%|