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.
“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.
- 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