Millionaires relocate over problems in SA

Johannesburg - The number of millionaires in South Africa declined significantly in 2015, with just over 950 leaving the country.

This represents a decline of 18 percent compared to the previous year.

This is according to the South Africa 2016 Wealth Report, which is compiled every year by New World Health and looks at the number of high-net-worth individuals in South Africa with net assets of $1 million (R15.5m) or more.

The report found that this emigration was due mainly to poor economic conditions, with the rand depreciating by about 25 percent against the dollar.

Most of those who left went to the United Kingdom (26 percent), followed by Australia (15 percent), the US (11 percent), Canada (8 percent), Mauritius (5 percent) and Israel (5 percent).

The survey found that most of these millionaires left because of financial concerns, followed by an inability to deal with changing social dynamics in South Africa, concerns for their children’s future, crime, BEE requirements and concerns that a family member could contract HIV/Aids.

The survey also rated South Africa as underperforming on issues such as strong ownership rights, which was found to be a contentious issue in the country; poor economic growth; there was too much government intervention and monopoly; tax rates were too high; there was little ease of investment, preventing local companies and individuals from doing business abroad; and there was a high level of union involvement.

The country scored highly is having a well-developed banking system and stock market, and there was a free and independent media. South Africa scored four out of 10 overall in all these factors.

Other concerns that were mentioned were the rising level of government regulation in the business sector, high tax rates and BEE hiring requirements, strikes were increasing, the HIV epidemic was still too high, there was high government corruption, the unemployment rate exceeds 24 percent, the high crime rate, student protests, the collapse of commodity prices, the electricity crisis, as well as rising emigration.

angelique.serrao@inl.co.za

The Star