The latest African Wealth Report for the year 2024, a collaborative effort between Henley & Partners and New World Wealth, has unveiled the evolving dynamics of wealth across the continent. While South Africa retains its status as a key player in Africa’s wealth landscape, notable changes are underway, particularly in the Western Cape region.
According to the report, South Africa has seen a decline in its high-net-worth individuals (HNWIs), with 400 affluent individuals either relinquishing their millionaire status or leaving the country in 2023. Currently, South Africa is home to 37,400 HNWIs, down from 48,700 in 2013. Despite this decline, South Africa remains a significant hub for wealth, with Johannesburg boasting 12,300 millionaires and Pretoria with 2,100.
Cape Town: Emerging Wealth Hub
Cape Town, known for its stunning natural beauty and vibrant lifestyle, has become a magnet for HNWIs seeking a high-quality living experience. With 7,400 HNWIs, 28 centi-millionaires, and 1 billionaire calling it home, Cape Town is positioned as one of Africa’s wealthiest cities. The allure of the city extends beyond its borders, attracting affluent retirees from Europe and other African nations, drawn to its cosmopolitan atmosphere and world-class amenities.
Western Cape’s Dominance
The Western Cape’s rise in prominence is further underscored by the emergence of exclusive lifestyle estates on the outskirts of Cape Town. Areas like the Cape Winelands, encompassing towns such as Paarl, Franschhoek, and , have become coveted destinations for wealthy buyers. The Cape Winelands boast 3,600 HNWIs, contributing significantly to the region’s affluent reputation.
In addition to Cape Town’s ascent, other regions within the Western Cape contribute to the province’s affluent reputation. The Garden Route, stretching from Mossel Bay to Storms River, boasts 3,200 HNWIs and features upscale towns like Plettenberg Bay and Knysna. Beachy Head Drive in Plettenberg Bay has even earned the title “Africa’s Millionaire Row,” highlighting the area’s opulence and allure.
Cape Town’s Luxury Real Estate
Cape Town’s dominance extends to the luxury real estate market, where prime residential spaces are highly sought after. Commenting in the report, Berry Everitt, CEO of the Chas Everitt International property group, describes Africa — and South Africa in particular — as a rising star in the global luxury real estate sector. “In contrast to other major economic blocs, the continent has a mostly young and rapidly growing population, as well as a very fast rate of urbanization. This is already generating significant demand for services and products and pulling in an increasing number of HNWIs who are finding lucrative opportunities in the communications, financial services, infrastructure, retail, and manufacturing sectors, as well as in agriculture, logistics, commodities, and both residential and commercial real estate. And this, in turn, is boosting the demand for luxury properties.”
As the Western Cape continues to solidify its position as a hub of wealth and prosperity, it exemplifies the broader trend of economic decentralization on the African continent. With its blend of natural beauty, exclusive real estate, and thriving cultural scene, the Western Cape stands as a testament to Africa’s evolving wealth narrative and its potential for continued growth and prosperity.
