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Weaker Rand Won’t Stop South Africa’s Rich List From Growing – Report

Weaker Rand Won’t Stop South Africa’s Rich List From Growing – Report

A weaker South African Rand will not hamper the growth of the country’s rich list, nor would a slowing economic growth stop the number of millionaires that call the nation home from increasing, investment firm Old Mutual said in its latest New World Wealth Africa report.

The Africa’s second largest economy after Nigeria is home to over 47,000 dollar millionaires with a combined total wealth of $184 billion and accounting for 31 percent of the country’s overall wealth.

This constitutes more than half a percent of the total number of millionaires globally and the highest number in the whole of Africa, eNCA reported.

Old Mutual expect the number of dollar millionaires in the country to increase to 55,500 by 2017.

“The continued growth in numbers of high net worth individuals in South Africa can be attributed to a combination of factors, including the country’s continued position as a business and investment gateway into Africa and its appeal as a global investment destination, and its robust physical and financial infrastructure,” Luke Martins, a financial planner at Old Mutual Private Wealth Management, said in the report.

The South Africa rand, which fell to a thirteen-and-half-year low in June, is widely expected to continue depreciating in coming months as inflation rises, weighing on economic activity, while negatively affecting investor sentiments in the country.

The country’s rich list has expanded by an average 9 percent in the last eight years aided by its position as a the top business and investment destination on the continent and is expected to continue growing at the same rate or even faster.

South Africa’s Black Economic Empowerment policies are also lauded for increase in wealthy citizens in the country although whites still dominate the rich list.

The report says Africa has the world’s fastest growing high net worth individuals with the number of dollar millionaires rising by 145 percent since the dawn of the millennium, compared to a global HNW growth of 73 percent over the same period.