Of the ones that left, 36% went to the UK, 15% to Australia, 11% to the US, 8% to Canada, 5% to Mauritius and 4% to Israel.
The top reasons for HNWIs leaving SA are financial concerns; the inability to deal with changing social dynamics in SA; concerns for their children’s future, including education; crime; BEE requirements; and concerns that someone in the family might contract HIV/Aids.
It’s all pretty obvious that the economic situation in South Africa is bumming a lot of people out, but hopefully Pravin Gordhan can install some faith – although it seems all forces are working against him to seek otherwise.
SA’s unions have become increasingly active over the past five years, which has driven up wages and pushed up unemployment and inflation. It has also resulted in the closure of several mines and discouraged new business formation. Postal and platinum strikes lasted almost five months, for example.
Yet not is all bad:
The country scored 9/10 for its banking system and stock market and 8/10 for its free and independent media, “preventing government from getting away with wrong-doing and setting SA apart from most other African countries”.
Kidding, it’s all pretty messed up.
Government corruption and inefficiency, specifically relating to tenders and personal expenses, is seen as risky for the country as well. Other risks are the unemployment rate, which exceeds 24%; a relatively high crime rate, which deters foreign investors and tourists; and the rising level of emigration of wealthy people out of the country.
Student protests, the collapse in commodity prices and the current electricity crisis are more risks highlighted in the survey.
[source: fin24]
