Cape Town Poised to Overtake Johannesburg as South Africa’s Financial Hub

South Africa is home to a diverse range of cities, each with its own unique character and economic landscape.

The number of resident millionaires and their wealth growth rates over the past decade provide insights into the country’s financial hubs.

Johannesburg, long regarded as South Africa’s wealthiest city, has seen its millionaire population grow to 14,600. However, its relative wealth growth rate has been sluggish, with a decline of 40% in the past decade.

This is partly due to coastal semigration, as more wealthy individuals opt for the coastal lifestyle and invest in property in other regions.

In contrast, Cape Town has experienced a remarkable rise in its millionaire residents, reaching a total of 7,200. The city has managed to buck the trend observed in Johannesburg, with a positive growth rate of 10% in the same period.

This growth can be attributed to its breathtaking natural beauty, lifestyle, and booming tourism and tech industries.

Durban, South Africa’s third-largest city, boasts 3,600 millionaires and a wealth growth rate of -6%. Although it has faced economic challenges in the past decade, it still maintains a substantial base of wealthy residents.

The Cape Winelands and The Garden Route regions have seen substantial growth in their millionaire populations, with 3,400 and 3,000 millionaires, respectively.

Both areas have experienced wealth growth rates of 18% and 22%, driven by their scenic beauty, vineyards, and tourism.

Pretoria, another major urban area in South Africa, is grappling with a decline in wealth growth, standing at -35%. The city has 2,400 millionaires, and internal migration trends have affected its economic performance.

The Whale Coast region may be one of the smaller areas on the list, but its millionaire population has shown a remarkable growth rate of 25%. With 1,100 millionaires, this coastal haven is attracting wealthy residents.

According to the report, if the current rate of internal migration continues, Cape Town is poised to overtake Johannesburg as South Africa’s wealthiest city by 2040. The allure of coastal living, along with the city’s growing industries, positions Cape Town as a prime destination for the country’s affluent population.

South Africa’s Wealthiest Cities

  • Johannesburg: The Financial Capital

    • Millionaire population: 14,600
    • Wealth growth rate: -40%
  • Cape Town: A Rising Star

    • Millionaire population: 7,200
    • Wealth growth rate: 10%
  • Durban: A Coastal Gem

    • Millionaire population: 3,600
    • Wealth growth rate: -6%
  • Cape Winelands and Garden Route: Scenic Beauty and Tourism

    • Millionaire population: 6,400
    • Wealth growth rate: 20%
  • Pretoria: A City in Transition

    • Millionaire population: 2,400
    • Wealth growth rate: -35%
  • The Whale Coast: A Coastal Haven

    • Millionaire population: 1,100
    • Wealth growth rate: 25%

A Glimpse into the Future

  • Cape Town Poised to Overtake Johannesburg
  • Coastal Semigration Driving Wealth Growth
  • The Changing Landscape of Wealth in South Africa
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