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Durban's ultra-rich on the rise

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Durban in KwaZulu-Natal was the top performing city between 2007 and 2013 with wealthy individuals’ volume growth reaching 23 percent and ultra wealthy recording 43 percent growth.

Sources of wealth for these individuals ranged from financial services, real estate, basic materials, construction & engineering, diversified, tech & telecoms, transport & logistics, manufacturing and other services.

According to New World Wealth’s new report entitled “Wealth in South Africa 2014: The Future of South African HNWIs”, high net worth individuals have assets of US$1 million or more excluding primary residences.

Ultra high net worth individuals (UHNWIs) have net assets of US$30 million or more excluding their primary residences.

HNWIs in Johannesburg saw growth of 21 percent outperforming Cape Town with only 8 percent growth during the period, while Pretoria in Gauteng and other areas recorded growth of 4 and 5 percent respectively.

HNWIs City Performance 2007-2013

Ranked by HNWIs

HNWIs 2007*

HNWIs 2013*

Growth 2007-2013

Johannesburg

19 300

23 400

21%

Cape Town

8 300

9 000

8%

Durban

2 200

2 700

23%

Pretoria

2 400

2 500

4%

Other

10 600

11 100

5%

Total South Africa

42 800

48 700

14%

Source: New World Wealth (* rounded to nearest 100)

UHNWIs City Performance 2007-2013

Ranked by UHNWIs

UHNWIs 2007

UNHWIs 2013

Growth 2007-2013

Johannesburg

230

285

24%

Cape Town

100

110

10%

Durban

23

33

43%

Pretoria

28

31

11%

Other

145

140

-3%

Total South Africa

526

599

14%

Source: New World Wealth 

Industry breakdown

Financial services’ is the main industry from which South Africa’s UHNWIs have acquired their wealth (16 percent of UHNWIs – Johannesburg had the highest percentage of these individuals (18 percent), followed by Pretoria (15 percent), Cape Town 12 percent and Durban only recording 9 percent.

Top Sectors for UHNWIs in Major Cities 2013

 

Johannesburg

Cape Town

Durban

Pretoria

South Africa

Finacial services

18%

12%

9%

15%

16%

Basic Materials

15%

4%

10%

20%

12%

Manufacturing

15%

3%

9%

2%

11%

Transport & logistics

9%

17%

2%

1%

10%

Construction &engineering

11%

1%

18%

1%

8%

Diversfied

10%

2%

1%

2%

7%

Tech & telecoms

7%

3%

8%

9%

7%

Real estate

4%

12%

3%

15%

6%

Other

12%

46%

40%

35%

23%

Source: New World Wealth

Basic materials (which includes agriculture and mining) in second place, is the primary source of wealth for 12 percent of South Africa’s UHNWIs. Other important industries for UHNWIs include manufacturing (11 percent), transport and logistics (10 percent) and construction and engineering (8 percent).

As reflected, the main sectors for UHNWIs living in Johannesburg are financial services, basic materials and manufacturing while Cape Town is dominated by transport & logistics and real estate sectors.

The fastest growing sector for South African UHNWIs over the review period was telecoms. Other fast growing sectors included insurance, healthcare, banking, FMCG, retail and transport & logistics. 

 

Author: Andrew Amoils

Submitted 30 May 14 / Views 3194

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