Covid-19 impact on wealth and employment crucial according to SA Wealth Report 2020
The impact of the crisis on South Africa will result in a poor wealth forecast for 2020/2021.
According to the South African Wealth Report for 2020, which provides a statistical summary and analysis of South Africa’s current position in the wealth market, Covid-19 is at the top of the country risks lists.
The report states that the impact of the crisis on stock markets, the rand, salaries, general business opportunities in South Africa and the major sectors will result in a poor wealth forecast for 2020/2021.
The other three country risks include:
- Safety concerns – Safety is one of the key drivers of wealth growth in a country. South Africa has one of the worst crime rates among major emerging markets.
- Loadshedding and Eskom.
- Possible nationalisation of the healthcare sector – this could damage the private healthcare system, which could cause large numbers of wealthy and middle-class people to leave the country.
The report also stated that performance over the past year has been poor, with wealth held in the country declining by 2 percent in 2019. Performance was negatively impacted by a declining currency, a sluggish local property market, the ongoing migration of wealthy people out of the country and a large number of local businesses closed down during the period, especially in the SME space.
According to the report, South Africa’s wealth statistics for the year ended December 2019 were:
- In terms of total wealth held, South Africa is the largest wealth market in Africa and the 32nd largest worldwide.
- People living in South Africa together hold US$636 billion in wealth. 42 percent (around $267 billion) of this is held by millionaires.
- The average South African individual has net assets of approximately US$11,000.
- There are approximately 38,400 millionaires living in South Africa, each with net assets of $1 million or more.
- There are 2,030 multi-millionaires living in South Africa, each with net assets of $10 million or more.
- There are 92 centi-millionaires living in South Africa, each with net assets of $100 million or more.
- There are five billionaires living in South Africa, each with net assets of $1 billion or more.