South Africa continues to lost high-net-worth taxpayers

South Africa has seen a further decline in its millionaire population, with 400 wealthy individuals either leaving the country or losing their millionaire status in 2023, according to the latest African Wealth Report for 2024. This adds to the thousands lost over the last decade.

Published by international wealth advisory firm Henley & Partners in collaboration with global wealth intelligence partner New World Wealth, the report reveals that South Africa had 37,400 high-net-worth individuals (HNWIs) at the end of 2023, down from 37,800 in 2022 and significantly lower than the 48,700 recorded at the end of 2013.

HNWIs are defined as individuals with liquid, investable wealth exceeding US$1 million (~R19 million).

Africa as a whole is home to 135,200 HNWIs, along with 342 centi-millionaires worth US$100 million or more, and 21 billionaires. The continent’s ‘Big 5’ wealth markets — South Africa, Egypt, Nigeria, Kenya, and Morocco — account for 56% of its millionaires and over 90% of its billionaires.

South Africa, despite its decline in millionaires over the past decade, still leads the continent in HNWI numbers. However, it has also seen significant emigration of HNWIs, with currency depreciation and underperforming stock markets cited as factors affecting wealth compared to global benchmarks.

Approximately 18,700 high-net-worth individuals have left Africa over the past decade, with many relocating to countries such as the UK, USA, Australia, and the UAE. South Africa alone has close to 1 million expatriates, many of whom are high earners and skilled individuals.

While wealth is forecasted to rise in other African nations, South Africa is facing challenges compared to its counterparts, with a growth rate of just 0.9%. Nigeria, Angola, and Egypt are also experiencing constraints that limit significant economic takeoff.

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