Global market research group New World Wealth recently published its annual South African Wealth Report, identifying trends that drive the country’s wealthiest people.
The report found that South Africa is home to 43,600 High Net Worth Individuals (HNWIs) – defined as individuals who have net assets of $1 million or more.
Additionally South Africa is home to 2,200 multimillionaires (net assets of $10 million or more), and five billionaires with net assets of $1 billion or more.
The average age of HNWIs in South Africa is 57 years, slightly above the worldwide average.
However South Africa is also home to a large number of young millionaires with those aged 40 and under accounting for 29% of the total make up.
The largest portion of South Africa’s HNWIs acquired their wealth through the financial and professional services (including banks, law firms, accountants, fund managers and wealth managers), however this is closely followed by the real estate and construction industry.
- Financial & professional services: 26.8%
- Real Estate and construction: 19.7%
- Tech & telecoms: 8.9%
- Basic materials: 8.3%
The financial and professional services industry was also the fastest growing sectors for South African HNWIs over the past decade, New World Wealth said.
Being a director of a company is the best way to achieving a high net worth status in South Africa, making up 40% of the total
Title (% of HNWIs):
- Director: 40%
- Managing Director: 16%
- Chief Executive Officer: 11%
- Chairman: 9%
- Partner: 8%
- Chief Financial Officer: 3%
- Financial Director: 3%
A report published by PwC in 2017 highlighted the average salaries earned by the top executives at JSE-listed companies.
Executives at small and medium-sized companies are more in-line with widely published salary data, with PwC putting the figures for CEOs at between R1.3 million and R2.5 million, and for executive directors at between R1 million and R2.1 million.
At big companies, these averages increase to between R3.3 million and R7.9 million for CEOs and between R2.1 million and R4.4 million for executive directors.
It noted that financial directors and chief financial officers were also among the top remunerated titles.
Recruitment specialist, Adzuna, also noted growing diversity in jobs that offer R1 million-plus salaries, saying that although financial, digital and engineering positions claim the most of the R1 million+ positions advertised, directors from all sorts of industries are filling in the gaps.
Managing directors, specifically, are fast approaching the R1 million mark, currently being offered R986,000 on average, it said.