SA climb­ing up global wealth lad­der

Afro Voice (KwaZulu Natal) - - Inside - THELMA NGOMA thel­man@the­

SOUTH Africans are climb­ing up the lad­der in the global space as 84000 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 8200 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 1500 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. 58 000 are US dol­lar mil­lion­aires in 2017 and rep­re­sent a sig­nif­i­cant in­crease on last year’s fig­ure of 45 000.

This year in­di­cated an up­turn in mean wealth for the South African pop­u­la­tion from $20 589 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%.

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