According to the latest BRICS Wealth Report, Cape Town may have seen a 20% drop in its millionaire population since 2013, but it is attracting large numbers of high-net-wealth individuals (HNWI) from both other South African cities and across Africa, Europe, Russia and the UK.
Also read: Report deems Cape Town one of the wealthiest cities in Africa
The report revealed that there are currently 1.6 million individuals with investable assets of over $1 million in the grouping of the world’s leading emerging economies, including 4.716 centis (individuals with more than $100 million in investable assets) and 549 billionaires.
Highlighting that South Africa was home to 37 400 USD millionaires (including 102 centis and five billionaires) at the end of 2023, Business Tech reported that this means SA has lost approximately 9 350 (20%) USD millionaires over the past decade.
However, looking to the decade ahead, when it comes to private wealth growth projections, South Africa is expected to see a 60% increase in wealth per capita by 2033, with Cape Town expected to play a key role in bumping up the country’s share of wealthy individuals.
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Head of wealth research at New World Wealth, Andrew Amoils, said the Mother City was currently ‘benefiting from the ongoing “semigration” of large numbers of HNWIs from other parts of South Africa’, especially Johannesburg and Pretoria.
Amoils added that Cape Town ‘is also an increasingly popular retirement destination for migrating HNWIs from Africa, Europe, Russia and the UK. Cape Town is projected to reach over 13 500 millionaire residents by 2033’.
As it stands, there are approximately 7 400 HNWI residents across Cape Town’s opulent suburbs, which include Bantry Bay, Bishopscourt, Camps Bay and Clifton, among others. This was feeding into a booming private and wealth banking industry in South Africa, reported IOL.
‘South Africa’s wealth management market is well positioned for success. It is a potential hub for other African wealth management markets, having one of the biggest stock exchanges in the world and a well-developed wealth management, fund management and banking system,’ noted the Africa Wealth Report 2023.
The BRICS Wealth report attributes Cape Town’s impressive performance to its strong tourism sector, its status as a regional tech hub and its attractive lifestyle and climate.
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