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South Africa has lost 11,300 (20%) of its dollar millionaires in the past decade, the fourth-most of any African country, as high-skilled workers look for jobs in developed economies.<\/p>\n
This was revealed in the ninth Henley & Partners Africa Wealth Report, which outlines the key wealth trends across the continent.<\/p>\n
South Africa remains the wealth capital of the continent, with 37,400 dollar millionaires and 5 billionaires living in the country.<\/p>\n
This is more than double the number of second-place Egypt. Nigeria, Kenya, and Morocco round out the top five.\u00a0 However, Egypt has two more dollar billionaires than South Africa.<\/p>\n
Africa\u2019s millionaire population experienced a significant decline in the past decade, losing 8% as many immigrated out of the continent.<\/p>\n
Another major reason for the decline is the continent\u2019s lacklustre economic growth, particularly in its main economic hub, South Africa.<\/p>\n
The local economy has performed poorly compared to its international counterparts. South Africa\u2019s GDP growth rate has not exceeded 5% since 2007.<\/p>\n
This has made it tremendously difficult to build wealth in the country as poor economic growth inevitably results in wealth-building assets, such as stocks and property, generating flat returns.<\/p>\n
The latest BRICS Wealth Report for 2023 by Henley & Partners explains the reasons why South African millionaires are leaving the country.<\/p>\n
High-net-worth individuals (HNWIs) tend to leave a country due to social, political, and economic instability. They prefer \u201csafe haven countries\u201d where their wealth can be protected easily.<\/p>\n
In South Africa, HNWIs are particularly concerned about their personal security and safety due to the rising crime rate and violence.<\/p>\n
Growing concerns around education and healthcare also cause rich people to want to leave the country.<\/p>\n
However, the future looks somewhat brighter for South Africa regarding wealth, with Henley & Partners expecting the country\u2019s wealth to grow by 60% over the next decade.<\/p>\n
Due to its affordability, the country will also begin attracting foreign millionaires and billionaires.<\/p>\n
In particular, Cape Town is expected to see an influx of HNWIs, with its current 7,400 millionaire population set to swell by 85% over the next ten years to 13,500 in 2033.<\/p>\n
RMB Morgan Stanley said earlier this year that South Africa stands out among its global peers because it offers an unexpected advantage in terms of affordability.<\/p>\n
Over the last year, the rand has weakened about 9% against the dollar and euro and about 12% against the British pound.<\/p>\n
This depreciation and South Africa\u2019s fairly subdued inflation compared to other countries means relative prices for local goods and services on sale are cheaper than elsewhere.<\/p>\n
\u201cConsumers can drink nearly three cappuccinos in South Africa for the price of one in the US and could spend four nights in a Cape Town hotel for the price of only one in London,\u201d said Mary Curtis, a strategist at the broker and Andrea Masia, an economist.<\/p>\n
\u201cLooking at the bigger picture, low relative prices of South African goods and services are just another example of the value in South African assets.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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