SOUTH Africans are climbing up the ladder in the global space as 84 000 citizens are now in the top 1% of global wealth.
The Credit Suisse Research Institute yesterday released its eighth edition of the Global Wealth Report. Andrew Amoils head of research at the New World Wealth said that total wealth refers to the private wealth held by all the individuals. It includes all their assets (property, cash, equities, business interests) less any liabilities.
AfrAsia Bank and New World Wealth recently reviewed the 10 wealthiest cities in Africa by total wealth held where Johannesburg was top holding $245bn (R3.5 trillion). It is home to 18 200 millionaires (HNWIs), 970 multimillionaires and two billionaires.
The second city is Cairo with $140bn. It is hme to 8 900 millionaires, 480 multimillionaires and five billionaires. Major sectors in the city include real estate and construction, financial services and basic materials. Cape Town surprisingly was third in top wealthiest cities holding $135bn. It is home to 8 200 millionaires, 440 multimillionaires and two billionaires. Major sectors in the city include real estate, financial services (fund management), retail and tourism. Cape Town is considered a second home hot spot for the wealthy with more than 1 500 multimillionaires living in the city during peak holiday months. Other cities include Lagos and Nairobi.
The number of millionaires globally has increased by 170% although the composition of the millionaire segment is changing fast. In 2000, as many as 98% of millionaires were heavily concentrated in high income economies. Since then, 23.9 million new millionaires have been added to the total, of whom 2.7 million, 12% of the total additions, originated from emerging economies.
Ten years on from the onset of the global financial crisis, global wealth has grown by 30%. Total global wealth grew at a rate of 6.4% in the year to mid-2017, the fastest pace since 2012 and reached $280 trillion, a gain of $16.7 trillion. The Credit Suisse report’s findings show that 84000 South Africans are among the top 1% of global wealth holders, up on last year’s figure of 66000. 58000 are US dollar millionaires in 2017 and represent a significant increase on last year’s figure of 45000.
This year indicated an upturn in mean wealth for the South African population from $20589 per adult to $21 849. However, GDP decreased sharply on 2016 levels of $15 158 per adult to $8 753 per adult. Emerging economies are expected to generate wealth at a faster pace than their developed peers and are likely to achieve a 22% share of global wealth at the end of the five-year period.
However, the pace of emerging economies’ wealth generation is slower than previously estimated. Unsurprisingly, the strongest contribution is expected from China and is estimated at around $10 trillion, an increase of 33%.