Millionaires in South Africa experienced a 10% decline in their fortunes, as total private wealth in the country dropped last year to $649bn.
According to the AfrAsia Bank South Africa Wealth Report 2019, the decline was driven by a poor exchange rate, a ‘sluggish' local property market, and the ongoing migration of wealthy people.
The report shows that there are 39,000 South Africans, with net assets of $1m (R14.3m) or more. Some 2,000 have net assets of more than $10m, while 94 have $100m in net assets.
Johannesburg has lost a large number of HNWIs to other parts of the country while more recently, Cape Town has been harmed by the ongoing drought which has hurt the city’s real estate market and deterred migration to the city"
The AfrAsia Bank SA Wealth Report for 2019 said there are five South African US dollar billionaires living in the country (those with net assets of $1bn or more). It notes that a further nine US dollar billionaires who were born in the country no longer live here.
The wealthiest city in South Africa is Johannesburg, followed by Cape Town, Durban (including Umhlanga), Pretoria and Port Elizabeth.
The report shows that wealth in Joburg has declined among high net worth individuals, to $248bn, from $276bn before. As have the number of dollar millionaire residents, from 18,400, to 16,600. Cape Town has seen total wealth decline to to $133bn, from $155bn, with dollar millionaires dropping to 7,100, from 8,300 residents before.
"Our research shows that over the last ten years South Africa's two main wealth markets, namely Johannesburg and Cape Town, have performed relatively poorly," said Andrew Amoils, head of research at New World Wealth.
"Johannesburg has lost a large number of HNWIs to other parts of the country while more recently, Cape Town has been harmed by the ongoing drought which has hurt the city's real estate market and deterred migration to the city."
Total private wealth held by people in SA totals $649 billion, and it includes all their assets (property, cash, business interests, less any liabilities). This excludes government funds.
This makes SA the 31st largest wealth market in the world. About $275bn (or 42%) of this total is held by the HNWIs.