DURBAN - As part of the AfrAsia Bank Global Wealth Migration Review 2019, we looked at the top drivers of wealth growth globally.
Notably, woman safety features high on the list.
Based on our research, the top factors that encourage wealth growth in a country include strong safety and security with woman and child safety being particularly important.
According to the report, media freedom and neutrality is also a factor of that impacts wealth growth, it is important that major news outlets in a country are neutral and objective.
Strong ownership rights is also driver of wealth growth and Zimbabwe offers a case in point as to what happens when ownership rights are stripped – once assets are taken away they tend to lose value as no one is willing to buy anything.
Below are some of the other factors that drive wealth growth:
• Strong economic growth - economic growth is usually linked to wealth growth.
• A well-developed banking system and stock market - insures that people invest and grow their wealth locally. Also insures that GDP growth leads to wealth growth.
• Low level of government intervention – government tampering in the business sector creates large inefficiencies within an economy. Government owned enterprises and parastatals are also a problem.
• Low income tax and company tax rates - Dubai and Singapore are examples of the power that tax rates can have in encouraging business formation – both have very low tax rates.
• Ease of investment - barriers such as exchange controls inhibit wealth growth.
• Wealth migration - the migration of HNWIs to the country helps create wealth.
BUSINESS REPORT ONLINE