Far from Equal: Previously disadvantaged groups account for only 14% of South Africa’s Ultra Wealthy at the end of 2011

This press release is part of WealthInsight’s report on South Africa, entitled: South Africa – The Future of HNWIs to 2016: The Rise of African Wealth.

According to the report’s author, WealthInsight analyst Andrew Amoils: “Despite strong transformation efforts by the ANC government since 1994, South Africa’s wealth distribution at the top end remains far from equal”

“WealthInsight research shows that there were 75 South African ultra high net worth individuals from previously disadvantaged groups at the end of 2011, which equates to only 14% of South Africa’s total UHNWI population of 543 individuals. This is a relatively low percentage considering that these groups make up 90% of the national population.”

“Things were slightly more equitable at the lower end of the high net worth spectrum, but still far from equal. Among all high net worth individuals (otherwise known as millionaires), WealthInsight research shows that there were approximately 12,500 South African millionaires from previously disadvantaged groups at the end of 2011, which equates to a healthier 28% of South Africa’s total millionaire population of just over 44,700 individuals.”

Definitions:

·         “High net worth individuals” otherwise known as “millionaires” or “HNWIs” refer to individuals with net assets of US$1 million or more excluding their primary residences

·         “Ultra high net worth individuals” or “UHNWIs” are individuals with net assets of US$30 million or more excluding their primary residences

·         “Core high net worth individuals” or “Core HNWIs” are individuals with net assets of between US$1 million and  US$30 million, excluding their primary residences

·         ‘Previously disadvantaged groups’ include Black Africans, Cape Coloreds, Indians and Chinese citizens. These individuals were restricted from voting in national elections until 1994 and were forced to live in different areas to the white population in a system known as ‘apartheid’ (racial separation).