The socio-economic landscape is a forever changing element formed by the various circumstances governing the global atmosphere.
The impact can be felt amongst individuals in South Africa, where the shifting dynamics across the country’s main industries have also led to a change in wealth amongst citizens. Social aspects varying from financial concerns, health interests, education, and crime have had much to do with the changes in the way people in South Africa are choosing to invest their wealth.
The changing South African economic landscape
In fact, as confirmed by the South Africa 2018 Wealth Report published by AfrAsia Bank and New World, real estate value has dropped 11% whilst entrepreneurship in South Africa is on the rise, as the share of the number of assets assigned to equities has increased to 28% and the value of business interests has also increased to 21%.
Wealth in South Africa is increasing exponentially with the jurisdiction remaining the largest wealth hub within Africa. The economic shifts have seen an 8% increase in South Africa’s millionaires since 2013, with the Knight Frank Wealth Report 2019 estimating an increase to 61,474 individuals.
How South Africans are spending their money
Whilst the average South African spends his income predominantly on housing, transport and entertainment, the wealthy are spending their money on big brands as well as hotel accommodation and travel with the preferred destinations for South Africans being Europe, New Zealand, United Kingdom, Australia, United States of America, Israel, Canada and Mauritius. Purchasing accommodation overseas to provide the ability to live there indefinitely is one of the major interests to South African citizens.
Investing wealth for long term results
These findings harmonise with research showing that South Africans have been investing their wealth in a second citizenship, with the majority of HNWIs deciding to leave South Africa, despite most having other options.
Jean-Philippe Chetcuti, Senior Partner (Global Residency & Citizenship) at Chetcuti Cauchi Advocates, confirmed the increase in passport requests from the region.
“During the past years, there has been an increased interest in obtaining second citizenship from South African individuals with the most popular destinations for the South Africans being Antigua & Barbuda, Malta, and Portugal. As of recently, we are also seeing an interest in the newly launched programme of Moldova.”
Speaking about the region, Chetcuti said that a second passport would provide citizens with visa-free access with over a hundred destinations, depending on the programme, as well as give approved applicants the right to study, live and work outside of South Africa.
He added that while most clients are not necessarily interested in leaving South Africa, investing abroad, having easier access to their children studying abroad, and having a Plan B for their family future are the main driving points for such an investment in a second citizenship.
Meet in South Africa
Chetcuti Cauchi will be in South Africa from the 28 April until 6 May 2019, where they will be holding one-on-one confidential meetings. If you would like to book your one-on-one meeting with industry experts click here.
As an international firm, Chetcuti Cauchi Advocates can assist and provide advice with regards to personal relocation opportunities, asset protection, corporate and tax planning, financial emigration and real estate investment.
Contact [email protected] for more information.