A new report finds that there were 14,700 South African high-net-worth individuals (HNWIs) from previously disadvantaged groups at the end of 2014.
This equates to 31% of the country’s total HNWI population, according to the 3rd annual wealth report on South Africa, entitled the “South Africa 2015 Wealth Report”, published by New World Wealth.
A HNWI is person with wealth of US$1 million or more, whilst a multi-millionaire is an individual with wealth of at least US$10 million.
“Wealth” is defined as the net value of assets, which includes financial holdings, business interests and tangible assets. The only item excluded from NWW’s valuation is primary residences.
Out of a total 46,800 HNWIs in SA in 2014, 32,100 are white, representing 69%, while 9,800, are either Indian, Asian or coloured representing 21%, and 4,900, or 10%, are African.
“This is a relatively low percentage considering that these groups make up 90% of the national population,” NWW said.
However, a previous New World Wealth report showed that SA had 7,800 millionaires from previously disadvantaged groups in 2013 – equating to only 16% of South Africa’s total millionaire population.
This means that the number of millionaires from previously disadvantaged groups has also doubled between 2013 – 2014.
HNWI changes 2013 – 2014
|White||40 900||32 100||-21.5%|
|Previously disadvantaged||7 800||14 700||88.5%|
|Total||48 700||46 800||-3.9%|
HNWI demographic changes 2007 – 2014
|White||36 900||32 100||-13%|
|Asian/Indian/Coloured||3 600||9 800||172%|
|African||2 300||4 900||113%|
|Total||42 800||46 800||9%|
Between 2007, and 2014, the Indian/Asian population segment has seen 172% growth in high-net-worth individuals, from 3,600, while the African segment grew 113%, from 2,300 HNWIs in 2007.
Interestingly, the number of white high-net-worth individuals has declined by 13% over the past seven years, from 36,900 in 2007, to 32,100 in 2014.
Overall the country has added 4,000 HNWIs over that time period.
BEE, or Broad-based Black Economic Empowerment (B-BBEE) is an initiative launched by the South African Government under the BEE Act to address the restrictions that exist within the country for black individuals to participate fairly in the economy.
Earlier in March, research found that black South Africans hold at least 23% of the Top 100 companies listed on the Johannesburg Stock Exchange as at the end of 2013.
The shares held by black investors include 10% held directly (largely through BEE schemes) and 13% through mandated investment – mostly through individuals contributing to pension funds, unit trusts and life policies.
White South Africans hold approximately 22% of the Top 100 companies, while foreign investors hold about 39%, up from 34% in 2011.