10 reasons why super-rich flock to SA

Source: Fin24, 14/05/2017

Cape Town - South Africa has over twice as many millionaires (HNWIs)
as any other African country, because there are certain things that
attract them, according to the South Africa 2017 Wealth Report by New
World Wealth and Honeybee Communications.


In terms of the report, HNWIs are defined as individuals with wealth
or net assets of $1m (about R13.3m) or more. Wealth is defined in the
report as the net assets of a person. This would include all their
assets - property, cash, equity and business interests - less any
liabilities.


At the end of 2016 there were about 40 400 such HNWIs living in South
Africa, with combined wealth holdings of $171bn. This is compared to
the overall wealth held by all the individuals living in SA, which
amounted to $610bn at the end of 2016 and includes the wealth of
HNWIs, the middle class and the poor people.


The number of South African HNWIs is forecast to grow by 30%, to reach
52 500 by 2026, while HNWI wealth is forecast to grow by 33% to reach
$228bn by 2026. Overall, wealth held by all the individuals living in
SA is expected to rise by 32% to reach $805bn by 2016.


Here are ten reasons why HNWIs come to SA:
- A good private healthcare system;
- Top private schools for their children;
- Lifestyle aspects like wildlife, beaches, the weather and scenery;
- Top class shopping centres like Sandton City, Gateway, Montecasino,
the V&A Waterfront and Hyde Park;
- It is a predominantly English speaking country;
- There is very little religious violence - when compared to other
African countries like Nigeria;
- A fully developed luxury market, where most of the major luxury
brands are available;
- A large number of luxury holiday destinations within the country,
for examples Cape Town and Umhlanga;
- High-end food stores such as Woolworths, which appeal to wealthy
consumers; and
- Over 50 luxury residential estates.
According to the report, South Africa has strong fundamentals for
wealth growth going forward. These include a well-developed wealth
management, fund management and banking system and a large free media,
which helps disseminate reliable information to investors.


This sets South Africa apart from most other African markets.


On top of that, SA also has one of the 20 biggest stock exchanges in
the world and the country is a hub for doing business in the rest of
Africa.