Johannesburg – the home of Africa’s dollar millionaires

06 April 2017

 

Johannesburg is not only the City of Gold but it is also home to the largest number of dollar millionaires in Africa.

 

According to the latest Africa Wealth Report released by the Johannesburg-based British intelligence company New World Wealth and AfrAsia Bank, Johannesburg boasts 18 200 dollar millionaires and two dollar billionaires, who among them have a combined total wealth of more than $245-billion (about R3.4-trillion).

 

The report shows the financial performance of Africa’s high-net worth individuals from 2006 to 2016. This wealth incorporates property, cash, equities and business interests.

 

Johannesburg is followed in second place by Cape Town, whose dollar millionaires have a combined wealth amounting to $135-billion, slightly more than half of Johannesburg’s. The combined wealth of Johannesburg’s dollar millionaires constitutes more than one-third of the $610-billion (about R8.5-trillion) held by all South Africa’s dollar millionaires.

 

According to the report, South Africa is home to 40 400 dollar millionaires and 2 130 dollar multimillionaires (those who have more than R125-million in their bank accounts each). This means that almost half of the country’s dollar millionaires are in Johannesburg. South Africa is followed by Egypt with a combined wealth total of $313-billion and Nigeria with $270-billion.

 

Coming in last place on the African wealth list is Zimbabwe, with only $3-billion to its name with per capita wealth of just $200 per person.

 

Key sectors driving Johannesburg’s economy, according to the report, include financial, professional and telecommunication services, construction and basic materials.

 

Johannesburg Executive Mayor Cllr Herman Mashaba says the high number of dollar millionaires in Johannesburg is indicative of the city’s vast economic potential. He says by attracting more wealth into the city and catalysing economic growth opportunities, more employment will be created, which will, in turn break the poverty cycle.

In a bid to drive the revitalisation of the city, Mayor Mashaba’s administration seeks to achieve 5% economic growth by 2021.

 

The City has undertaken several economic development and growth initiatives, including the revival of the inner city through the multibillion-rand Urban Development Zone programme. It has also embarked on several import-export programmes to increase trade between Johannesburg and South Africa and the rest of the world.