Why Wealthy South Africans Are Taking Their Millions To Mauritius


That’s the inescapable conclusion from a new report that reveals South Africa is losing out to other African countries when it comes to attracting the super wealthy.

Between 2007 and 2015‚ South Africa lost 10% of its dollar millionaires‚ while the number in Mauritius grew by 160%‚ according to the Africa 2016 Wealth Report from New World Wealth.

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“We estimate that 240 millionaires have moved there from South Africa alone since 2007‚” the report says.

Other countries where the population of millionaires grew over the eight-year period were Ethiopia (up 130%)‚ Tanzania (80%)‚ Ivory Coast (70%)‚ Kenya (60%)‚ Gabon (50%)‚ Namibia and Botswana (35%) and Nigeria (10%).

According to the report‚ the growth in millionaires in Mauritius was driven by:

  • Strong economic growth.
  • Secure ownership rights.
  • Migration.
  • It has become a major retirement destination.
  • Low taxes which encourage business formation and appeal to retirees.
  • Company and personal income tax rates are 15%‚ with no inheritance or capital gains tax.
  •  Automatic citizenship if you buys a $500‚000-plus home.
  • A thriving and growing financial services sector‚ particularly in offshore banking‚ fund management and private banking.
  • Low level of government regulation in the business sector.
  • Lifestyle – beaches‚ weather and scenery.
  • Low crime rate. Over the next 10 years‚ Mauritius was expected to continue to be the fastest
  • growing country in Africa for millionaires.

Ivory Coast and Kenya were also expected to perform well‚ the wealth advisory group said.

Source: Times Live

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