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10 reasons why super-rich flock to SA

Cape Town - South Africa has over twice as many millionaires (HNWIs) as any other African country, because there are certain things that attract them, according to the South Africa 2017 Wealth Report by New World Wealth and Honeybee Communications.

In terms of the report, HNWIs are defined as individuals with wealth or net assets of $1m (about R13.3m) or more. Wealth is defined in the report as the net assets of a person. This would include all their assets - property, cash, equity and business interests - less any liabilities.

At the end of 2016 there were about 40 400 such HNWIs living in South Africa, with combined wealth holdings of $171bn. This is compared to the overall wealth held by all the individuals living in SA, which amounted to $610bn at the end of 2016 and includes the wealth of HNWIs, the middle class and the poor people.

The number of South African HNWIs is forecast to grow by 30% to reach 52 500 by 2026, while HNWI wealth is forecast to grow by 33% to reach $228bn by 2026. Overall, wealth held by all the individuals living in SA is expected to rise by 32% to reach $805bn by 2016.

Here are ten reasons why HNWIs come to SA:

- A good private healthcare system;

- Top private schools for their children;

- Lifestyle aspects like wildlife, beaches, the weather and scenery;

- Top class shopping centres like Sandton City, Gateway, Montecasino, the V&A Waterfront and Hyde Park;

- It is a predominantly English-speaking country;

- There is very little religious violence, compared to other African countries like Nigeria;

- A fully developed luxury market, where most of the major luxury brands are available;

- A large number of luxury holiday destinations within the country, for example Cape Town and Umhlanga;

- High-end food stores such as Woolworths, which appeal to wealthy consumers; and

- Over 50 luxury residential estates.

According to the report, South Africa has strong fundamentals for wealth growth going forward. These include a well-developed wealth management, fund management and banking system and a large free media, which helps disseminate reliable information to investors. This sets South Africa apart from most other African markets.

On top of that, SA also has one of the 20 biggest stock exchanges in the world and the country is a hub for doing business in the rest of Africa.

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