BEE benefits blacks the least

The latest data from New World Wealth shows that BEE and affirmative action policies are working to uplift the previously disadvantaged – but black Africans aren’t the ones reaping the most benefit.

According to NWW’s South Africa 2015 Wealth Report, while the country has seen its black African millionaire population increase by 277% over the past 15 years, it’s actually the Indian population that has shown the largest increase in wealth.

There are approximately 46,800 millionaires (HNWIs with net assets over US$1 million) living in South Africa (as of December 2014), with combined wealth holdings of US$184 billion.

The number of Indian millionaires in SA has increased by over 400% 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% over the same period to reach only 4,900 millionaires.

“This shows that while BEE and AA policies are working, they are abnormally benefiting the Indian community,” NWW said.

“This discrepancy is alarming when one considers that the Indian community now makes up 14% of local SA millionaires, but only 3% of the national population. Africans, on the other hand, make up 80% of the national population, but only 10% of local SA millionaires.”

Meanwhile white South Africans still account for the most millionaires in the country – almost 70% of the total millionaire population.

While the white millionaire population has effectively doubled since 2000, the group has actually declined by 13% since 2007, when there were 36,900 white millionaires.

SA Millionaires, 2014

Group Millionaires, 2014 %
Whites 32 100 69%
Indian 6 500 14%
African 4 900 10%
Other 3 300 7%
Total 46 800 100%

SA Millionaire Growth

Group Millionaires, 2000 Millionaires, 2014 Growth
White 16 300 32 100 97%
Indian 1 200 6 500 442%
African 1 300 4 900 277%
Other 1 100 3 300 200%
Total 19 900 46 800 135%

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BEE benefits blacks the least