Mboniso Sigonyela
Turbulent stock markets and falling rand exchange rates ensured that the number of dollar millionaires in Africa remained flat. But the World Wealth Report 2001, compiled by Merrill Lynch and Cap Gemini Ernst & Young, says South Africa has confirmed its position as the continent’s economic powerhouse.
According to the report, South Africa has 24 000 high net-worth individuals, with combined assets of $300-billion. This is 60% of Africa’s total. A high net-worth individual is someone with liquid assets of at least $1-million. Although the total wealth of Africa’s richest individuals remained static (at 40 000 with $500-billion in assets) since last year, the number has risen 166% over the past 15 years. The African total is just 2% of the world’s super rich.
Although the low level of growth is disappointing, Merrill Lynch says it suggests nimble footwork on the part of domestic high net-worth individuals. “In the interim, equity markets have fallen and the rand declined in value,” says Merrill Lynch SA’s chief economist Jos Gerson.
Asian millionaires suffered most from the stock market crisis with their wealth declining 9% over the last year. Healthy economies in North America and Europe helped maintain their leadership with a combined share of just under 60%. There were 180 000 new entries into the elite group pushing total liquid assets to $27-trillion.
This year’s figures reflect tough economic conditions experienced recently. They are way below the more than one million new tycoons of 1999. “And a 6% increase in their wealth is way below that year’s 18%”, says Merrill Lynch.