{"id":788001,"date":"2024-08-26T18:00:00","date_gmt":"2024-08-26T16:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=788001"},"modified":"2024-08-26T17:50:14","modified_gmt":"2024-08-26T15:50:14","slug":"the-number-of-millionaires-living-in-south-africa-and-where-they-stash-their-money","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/788001\/the-number-of-millionaires-living-in-south-africa-and-where-they-stash-their-money\/","title":{"rendered":"The number of millionaires living in South Africa – and where they stash their money"},"content":{"rendered":"\n

6.7% of registered taxpayers are rand millionaires, earning over R1 million per annum, and most of their money is stashed away in offshore investments, equities and unit trusts, and real estate. <\/p>\n\n\n\n

According to Henley & Partners in its ninth Africa Wealth Report, South Africa has lost over 11,000 millionaires in the past decade, which is 20% of its millionaire population.<\/p>\n\n\n\n

Henley & Partners attribute this decline to a lack of personal safety and security, while the local economy\u2019s poor performance has made it hard to create new wealth. <\/p>\n\n\n\n

As a result, many of South Africa\u2019s elites have left the country for places with more stable politics and personal safety. <\/p>\n\n\n\n

Additionally, the group\u2019s latest Wealth Migration Report 2024 shows that South Africa remains one of the major millionaire outflow countries, with an estimated 600 high-net-worth individuals (HWNIs) expected to leave the country in 2024.<\/p>\n\n\n\n

NWW defines HWNIs as individuals with a liquid investable wealth of US$1 million (~R18 million) or more.<\/p>\n\n\n\n

However, while many rich South Africans have chosen to leave the country, many still find the country an incredibly attractive place to live.<\/p>\n\n\n\n

Despite its challenges, South Africa offers warm climates, picturesque landscapes, and affordable living costs. <\/p>\n\n\n\n

The latter is a major positive for rand millionaires who would otherwise have to sacrifice their standard of living to live in a euro, pound, or dollar-dominated economy.<\/p>\n\n\n\n

When you consider a millionaire in rand terms, South Africa has almost 500,000 millionaires who still call the country home.<\/p>\n\n\n\n

This is according to the National Treasury and the South African Revenue Service (SARB) tax statistics for the 2024\/\/25 financial year.<\/p>\n\n\n\n

The data showed that 490,676 South Africans earn over R1 million per annum. <\/strong>This equates to roughly 6.7% of registered taxpayers for the current financial year, which stands at 7.4 million.<\/p>\n\n\n\n

However, living in South Africa and taking advantage of its standard of living benefits doesn’t mean you have to keep your money in South Africa.<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Where their money is stashed<\/strong><\/p>\n\n\n\n

Economist Dawie Roodt agrees, saying South Africa is an exciting place to live and far more affordable than most developed countries.<\/p>\n\n\n\n

\u201cSouth Africa is a very special place. The first thing I did after returning from New Zealand was to buy a proper steak for a third of the price,\u201d he said.<\/p>\n\n\n\n

However, despite the positives, Roodt emphasised to those considering staying in South Africa the importance of careful future planning and awareness of the country\u2019s risks.<\/p>\n\n\n\n

Regarding financial matters, Roodt recommended that South Africans maintain a diversified portfolio, with a significant portion invested internationally.<\/p>\n\n\n\n

Data from Standard Bank align with Roodts’ advice and reveal that rich South Africans are already doing this, and for good reason.<\/p>\n\n\n\n

According to the bank, affluent South Africans earning over R1 million annually tend to diversify their investments across several key areas, including:<\/p>\n\n\n\n