adminSA HAS 47 000 dollar millionaires, almost 5 000 more than last year, largely the result of robust equity markets and strong life insurance and pension industries. At the same time, SA falls into the “very high inequality” category, with the wealthiest 10 percent of the population owning more than two-thirds of the country’s assets, according to the Credit Suisse Research Institute’s fifth annual global wealth report, released on Tuesday.
An estimated 63 000 of South Africans are among the top 1 percent of global wealth holders — 1 000 more than last year.
This global elite group includes 35-million dollar millionaires who hold 44 percent of global household wealth.
The number of SA’s dollar millionaires increased from 42 747 last year, despite a 5 percent fall in the rand.
The majority of SA’s household wealth — 73 percent — is made up of financial assets, which include shares, cash and bonds.
“SA is quite skewed towards financial assets, so its wealth tends to be driven more by the stock market than the property market, and more by corporate SA,” Credit Suisse private banking and wealth management division MD Michael O’Sullivan said.
The JSE all share index has grown almost 30 percent in the past three years.
Globally, total wealth grew 8,3 percent to $263-trillion, the first time world household wealth has passed the $250-trillion threshold, and despite a sluggish global economy. This was driven by healthy housing markets and robust equity prices.
Credit Suisse found that the bottom half of the global population own less than 1 percent of total wealth, while the richest decile hold 87 percent, and the top 1percent almost half of all global assets.
Commenting on SA’s high levels of inequality, Department of Economic Development deputy director-general: economic policy Neva Makgetla said apartheid was a system designed to prevent black South Africans from accumulating wealth.
Black people were not allowed to own land, while black women, in particular, could not access credit.
The disparate education system reinforced inequality.
“It is a long, difficult process to overcome this and get rid of the barriers to accumulating wealth,” Dr Makgetla said.— Business Day
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