Cape Town - When it comes to demonstrating and encouraging growth in Wealth Creation, South Africa makes the list of fastest growing wealth markets in Africa, according to a 2017 survey by New World Wealth and AfrAsia Bank.
As a home to some the most high-net-worth individuals (HNWIs) on the continent, according to a newly released study, the country's luxury brand market saw a whopping $2.3-billion (about R30bn at R13.19/$ ) in the year 2016.
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And the top luxury expenditure went to luxury brands in super cars, private jets, watches, alcohol or clothing. Added to that, the country's top-selling car in the super-cars category is a Porsche followed by Ferrari, Bentley, Rolls-Royce, Maserati, Aston Martin, Lamborghini and McLaren.
"Luxury SUVs are especially popular with Africa's super-rich. Reasons include high road clearance, safety aspects and being useful for holidays," says AfrAsia Bank's Suneeta Motala.
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According to the study, SA is home to 40 400 HNWIs, with combined wealth holdings of US$171 billion (about R2.2 trillion at R13.19/$) and the average South African individual has net assets of approximately US$11 300 (about R149 000 at R13.19/$), which is the 2nd highest level in Africa, after Mauritius.
As reflected, Mauritius was the top performing African country for HNWIs during this period, with a growth of 230%.
What's alarming to note is South Africa's growth prospects, going forward - reflecting poorly when it comes to margin of growth in the past year between 2015 and 2016. As well as forecast of growth over the next 10 years, with the likes of Ethiopia being the one to watch when it comes to Africa's super-rich.
“This report confirms our findings that the African Continent will demonstrate encouraging growth in Wealth Creation," says Sanjiv Bhasin, Chief Executive Officer of AfrAsia Bank.
While SA cities such as Paarl, Franschhoek, Stellenbosch Garden Route and the Whale Coast are the fastest growing South African city for HNWIs, with numbers rising by 48% during the review period (2006 -2016), however, the study says the Mother City is one of the 20 top second home hotspots in the world for multi-millionaires along with the likes of Sydney, St Tropez, the Hamptons, Miami and Palm Beach.
The following table details the performance of HNWIs in selected African countries over the past year (2016).
The following table details our forecasts over the next 10 years
The following table ranks major African countries by number of HNWIs
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