Huge spike in SA black millionaires

By Theresa Taylor. Time of article published Nov 15, 2013

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The number of black millionaires in South Africa has risen by 81 percent over the past seven years – but it’s not nearly enough.

Recent research from New World Wealth, a global wealth consultancy, found that despite this increase, previously disadvantaged millionaires only represent 16 percent of South Africa’s millionaires.

The research found that there are currently 7 800 millionaires, or high net wealth individuals (HNWIs), from previously disadvantaged groups, which the report states is a relatively low percentage considering that these groups make up 90 percent of the population.

Of the country’s 10 richest previously disadvantaged HNWIs, nine live in Joburg, while only the fourth richest, Sipho Nkosi, lives in Cape Town.

“Despite transformation efforts over the past 20 years, South Africa’s wealth distribution remains far from equal,” said the report’s author, Andrew Amoils.

However, Amoils did find that the rate of increase for black millionaires was vastly greater than for millionaires in general, who only increased in number by 14 percent.

South Africans are doing extremely well as millionaires declined by 0.3 percent worldwide in the same period.

South Africa’s 48 700 millionaires have a combined wealth of R2 trillion, accounting for roughly 31 percent of the country’s total individual wealth.

HNWI growth was aided by a rise in new business formation, particularly in the BEE arena.

Over the next four years, the number of South Africa’s millionaire population is expected to grow by 28 percent, reaching more than 62 400 in 2017. - The Star

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