More South Africans set to become millionaires

There will be a boom in the number of millionaires and billionaires coming out of South Africa over the next decade, a new report by Henley & Partners and New World Wealth shows.

The report, which tracks private wealth and investment migration trends worldwide, shows high net worth individuals (HNWIs) South Africa’s growth is predicted to grow 40% over the next decade. HNWIs include individuals with a wealth of $1 million (R16.08 million) or more.

The group’s data shows South Africa is currently home 39,300 HNWIs and 2,080 multi-millionaires – those with net wealth of $10 million or more. Five dollar billionaires call the country home.

According to the NWW projections, the country could have over 55,000 HNWIs by 2032.

Amanda Smit, managing partner at Henley & Partners South Africa, said emerging economies in Africa, Latin America, and elsewhere in the ‘Global South’ are rapidly catching up with the traditional high-income markets when it comes to the generation of private wealth.

“As our latest report predicts, the number of HNWIs in the top 15 leading economies in Africa are forecast to grow anywhere between 40% and 80% over the next decade compared to just 20% in the US and 10% in France, Germany, Italy, and the UK.”

Mauritius has the highest forecast HNWI growth on the continent for the next decade, at 80%. Other highlights are Uganda, with HNWI growth of 60% predicted, and Kenya and Morocco, which are each expected to see HNWI growth of 50% by 2031. South Africa’s growth is predicted to be 40%, and Nigeria’s 30%.

Despite this growth, the firms still expect millionaires in South Africa to look at their options outside of the country as well as investment opportunities.

“It is no secret that one of the major reasons behind high-net-worth investors seeking alternative investment destinations stems from political and economic uncertainty. Policy uncertainty, rand volatility, a stagnant economy, and unreliable power supply currently make the case for investing in South Africa a difficult one,” said Giles Maynard, senior financial advisor and regional manager at Carrick Wealth.

“South Africans continue to favour Portugal the most, but the Mauritius Residence by Investment Program is also attracting a great deal of interest. The Indian Ocean island offers a similar lifestyle and climate to South Africa, along with a dynamic economy, attractive tax regime, and competitive business landscape not too far from home,” Smit said.

Read: Here’s what R100 could buy you in 1980 vs today

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More South Africans set to become millionaires