- Wealthy South Africans are taking their money out of the country at an increasingly fast rate
- Total private wealth held in South Africa decreased by 10% between 2017 and 2018 alone
- Much of this capital flight has been attributed to policy uncertainty
Experts say that the number of wealthy South Africans taking their money abroad is increasing.
In many cases, the rich are even acquiring second citizenships and overseas residencies, particularly in countries like Australia and the United Kingdom.
Uncertainty around South Africa's economic policies have been singled out as a major reason for this wealth flight.
However, while the uncertain economic climate is one factor, other reasons have also been provided for why more and more wealthy South Africans are taking their wallets (and themselves) overseas. These include wanting to educate their children overseas and diversifying investments, according to fin24.
Additionally, in some cases tax incentives are the reason for taking capital out of South Africa. Some people may also be seeking greater stability by investing their wealth internationally, rather than at home.
A recent report has found that the number of people in South African with a nett worth of $1 million dollars or more is declining. The number decreased from 43 600 in 2018 to 39 200 in 2019, Briefly.co.za has gathered.
Similarly, total private wealth in South Africa dipped by a full 10% in the preceding year. Total wealth stood at $722 billion in 2017, but was $649 billion a year later.
Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!