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New World Wealth has published its latest report, revealing the wealthiest cities in the world for 2021.

The report pulls figures from June 2021 and considers the private wealth of high net worth individuals (HNWIs) who have $1 million (R14,52 million) or more to their name.

Per the report, wealth refers to the net assets of a person and includes property, cash, equities, and business interests, less any liabilities.

Johannesburg, per TimesLIVE, is the wealthiest city on the continent, with Cape Town following close behind.

Jozi has a total wealth that amounts to $235 billion (around R3,4 trillion) and Cape Town’s total wealth amounts to $130 billion (around R1,9 trillion).

The report elaborates by mentioning that the wealth of Jozi’s HNWIs is concentrated in just a few select suburbs, including:

• Sandhurst
• Hyde Park
• Houghton
• Westcliff

Cape Town is also home to Africa’s most exclusive suburbs, including:

• Clifton
• Bantry Bay
• Fresnaye
• Llandudno
• Camps Bay
• Bishopscourt
• Constantia

Plus, it is where quite a few top-end lifestyle estates like Steenberg, Atlantic Beach, and Silverhurst Estate are situated.

New World Wealth’s Andrew Amoils said that they put wealth as the measure of an economy’s financial health over GDP, for these reasons:

• In many developing countries, a large portion of GDP flows to the government and therefore has little impact on private wealth creation.
• GDP disregards income levels in a country.
• GDP ignores the efficiency of the local banking sector and the local stock market at retaining wealth in a country.
• GDP largely ignores the impact of property and stock market moves. These two factors have a huge impact on wealth.
• GDP is generally quite a static measure – it tends to only move slightly year-on-year. As a result, it is not a great gauge of the performance of an economy.

What’s more, BusinessTech reported on research published in August by the South African Centre for Inequality Studies and the World Inequality Lab.

The research shows that the average wealth held in a personal capacity is R326 000 among South Africa’s adult population of approximately 35,4 million people:

However, among the top 10%, this average shoots up to R2,79 million per person.

This is concentrated even further in the top 1% at R17,8 million per person, and the top 0,01% at R486,2 million.

The research touches on the wealth threshold across the different population groups, indicating the lowest point at which one would enter into any given category.

For this, you would essentially need a personal wealth of R496 000 to enter into the top 10%, and just over R3,8 million to be one of the one-percenters in the country.

[sources:businesstech&timeslive]