Wealth trends: South Africa’s ultra-wealthy economic survival strategies

Numerous South Africans are concerned about their prospects due to the country’s current dire situation.

The rising expense of living, coupled with continued state-controlled load shedding and deteriorating infrastructure, has compelled many South Africans to make significant changes to their way of life in preparation for the future.

This year, South Africa’s GDP is not expected to expand by more than 1.5%. According to Efficient Group chief economist Dawie Roodt, South Africa is unlikely to reach even 1.5% growth.

“Our economy cannot grow faster than 1.5% even if we’re fortunate.” The rate of population growth is 1.5%. We have about 50 percent unemployment. We have rising poverty levels in South Africa,” Roodt told 702 in an interview.

Due to the likelihood that the global economy may enter a recession in 2023, high-net-worth people (HNWI) desire to continue expanding and safeguarding their money.

During the Covid-19 outbreak, billionaires such as Jeff Bezos and Elon Musk experienced significant increases in their net worth. This is consistent with the notion that the world’s affluent increase their fortune during times of crisis.

The country’s mega-rich are relocating to countries outside of South Africa. Second residences are considered an excellent hedge against inflation.

According to Henley Global’s Africa Wealth Report 2022, private wealth on the continent would increase by 38 percent over the next ten years, with many individuals investing in offshore real estate to diversify their asset portfolios.

The survey also indicates that many wealthy individuals are getting residency through investing, which has become an enticing alternative to leaving their country of residence owing to political and socioeconomic issues.

Another trend that has been observed is semigration. A significant number of South Africa’s ultra-wealthy are flocking to coastal communities such as the Whale Coast and the West Coast. According to BusinessTech, the Garden Route is another location that is currently experiencing an influx of attention.

With the opportunity to work remotely, a growing number of South Africans are relocating to areas where they may continue to work, but outside of the country’s cities, which no longer provide the same high standard of life they once did.