More dollar millionaires are emerging in South Africa, with the majority of them being Colored, Indians and Blacks
The number of dollar millionaires in South Africa has risen by 9 percent since 2007, New World Wealth’s South Africa Wealth Report for 2015 says. The majority of South Africa’s newly rich are Colored, Indians and Blacks.
During the period under review, the number of white dollar millionaires declined 13 percent, while those of Indian, Colored and African grew 172 percent and 113 percent respectively. Most of the new wealth that was acquired during the period was made in the financial services sector, the wealthy report shows. “It (Financial services) is the primary source of wealth for 20% of local multimillionaires. Other important industries for them include real estate and construction (16%), basic materials (14%) and diversified (12%),”read the report.
The report observed that the electricity crisis, increasing trade union involvement in business and rising government regulation may strain the growth of millionaires in South Africa in coming years.
City of choice
As far as location goes, Johannesburg remains the destination of choice for the country’s top 1 percent. Durban is, however, quickly catching up.
Johannesburg is the city of choice for South Africa’s wealthy but Durban is quickly catching up
According to New World Wealth analyst Andrew Amoils, who was quoted on Business Day, the number of dollar millionaires in Durban has grown 200 percent since 2000.