More than 2000 South Africans have wealth of $10 million and more, according to research released on Wednesday. A higher percentage of these people are based in Johannesburg, South Africa’s economic hub situated in the Gauteng Province, the richest province in the country.
Financial services according to the report, is the main source of affluence for 20 percent of local millionaires. The other main sources of wealth include real estate and construction at 16 percent, basic materials at 14 percent and diversified at 12 percent.
A HNWI is person with wealth of US$1 million or more, whilst a multi-millionaire is an individual with wealth of at least US$10 million. “Wealth” is defined as the net value of assets, which includes financial holdings, business interests and tangible assets. The only item excluded from NWW’s valuation is primary residences.
Out of a total 46,800 HNWIs in SA in 2014, 32,100 are white, representing 69%, while 9,800, are either Indian, Asian or coloured representing 21%, and 4,900, or 10%, are African.
“This is a relatively low percentage considering that these groups make up 90% of the national population,” NWW said.
Earlier in March, research found that black South Africans hold at least 23% of the Top 100 companies listed on the Johannesburg Stock Exchange as at the end of 2013. The shares held by black investors include 10% held directly (largely through BEE schemes) and 13% through mandated investment – mostly through individuals contributing to pension funds, unit trusts and life policies. White South Africans hold approximately 22% of the Top 100 companies, while foreign investors hold about 39%, up from 34% in 2011.
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