Durban's ultra-rich on the rise
Durban in KwaZulu-Natal was the top performing city between 2007 and 2013 with wealthy individuals’ volume growth reaching 23 percent and ultra wealthy recording 43 percent growth.
Sources of wealth for these individuals ranged from financial services, real estate, basic materials, construction & engineering, diversified, tech & telecoms, transport & logistics, manufacturing and other services.
According to New World Wealth’s new report entitled “Wealth in South Africa 2014: The Future of South African HNWIs”, high net worth individuals have assets of US$1 million or more excluding primary residences.
Ultra high net worth individuals (UHNWIs) have net assets of US$30 million or more excluding their primary residences.
HNWIs in Johannesburg saw growth of 21 percent outperforming Cape Town with only 8 percent growth during the period, while Pretoria in Gauteng and other areas recorded growth of 4 and 5 percent respectively.
HNWIs City Performance 2007-2013
|
Ranked by HNWIs |
HNWIs 2007* |
HNWIs 2013* |
Growth 2007-2013 |
|
Johannesburg |
19 300 |
23 400 |
21% |
|
Cape Town |
8 300 |
9 000 |
8% |
|
Durban |
2 200 |
2 700 |
23% |
|
Pretoria |
2 400 |
2 500 |
4% |
|
10 600 |
11 100 |
5% |
|
|
Total South Africa |
42 800 |
48 700 |
14% |
Source: New World Wealth (* rounded to nearest 100)
UHNWIs City Performance 2007-2013
|
Ranked by UHNWIs |
UHNWIs 2007 |
UNHWIs 2013 |
Growth 2007-2013 |
|
Johannesburg |
230 |
285 |
24% |
|
Cape Town |
100 |
110 |
10% |
|
Durban |
23 |
33 |
43% |
|
Pretoria |
28 |
31 |
11% |
|
Other |
145 |
140 |
-3% |
|
Total South Africa |
526 |
599 |
14% |
Source: New World Wealth
Industry breakdown
Financial services’ is the main industry from which South Africa’s UHNWIs have acquired their wealth (16 percent of UHNWIs – Johannesburg had the highest percentage of these individuals (18 percent), followed by Pretoria (15 percent), Cape Town 12 percent and Durban only recording 9 percent.
Top Sectors for UHNWIs in Major Cities 2013
|
|
Johannesburg |
Cape Town |
Durban |
Pretoria |
South Africa |
|
Finacial services |
18% |
12% |
9% |
15% |
16% |
|
Basic Materials |
15% |
4% |
10% |
20% |
12% |
|
Manufacturing |
15% |
3% |
9% |
2% |
11% |
|
Transport & logistics |
9% |
17% |
2% |
1% |
10% |
|
Construction &engineering |
11% |
1% |
18% |
1% |
8% |
|
Diversfied |
10% |
2% |
1% |
2% |
7% |
|
Tech & telecoms |
7% |
3% |
8% |
9% |
7% |
|
Real estate |
4% |
12% |
3% |
15% |
6% |
|
Other |
12% |
46% |
40% |
35% |
23% |
Source: New World Wealth
Basic materials (which includes agriculture and mining) in second place, is the primary source of wealth for 12 percent of South Africa’s UHNWIs. Other important industries for UHNWIs include manufacturing (11 percent), transport and logistics (10 percent) and construction and engineering (8 percent).
As reflected, the main sectors for UHNWIs living in Johannesburg are financial services, basic materials and manufacturing while Cape Town is dominated by transport & logistics and real estate sectors.
The fastest growing sector for South African UHNWIs over the review period was telecoms. Other fast growing sectors included insurance, healthcare, banking, FMCG, retail and transport & logistics.
30 May 2014
Author Andrew Amoils
