Millionaires and their money kiss South Africa goodbye  

According to Investec economist Lara Hodes, wealthy and skilled individuals are leaving South Africa due to concerns about crime, power cuts, political uncertainty, and economic challenges.  

The latest tax data from the South African Revenue Service (SARS) indicates that thousands of taxpayers have ended their tax residency since 2017. The Africa Wealth Report 2023 reveals a 21% decline in the number of millionaires in South Africa over the past decade, from 47,800 in 2012 to 37,800 in 2022.  

The departure of both affluent individuals and skilled professionals is causing a skills crisis in the country. Qualified professionals are leaving, taking with them the skills needed for development at home.  

Additionally, many millionaires prefer to invest offshore, moving their money to offshore bank accounts and trading platforms to manage risk, hedge against rand weakness, and seek a more stable financial environment.  

The outflow of money and skills is detrimental to South Africa’s economy, impacting the tax base and hindering business growth due to a shortage of skills. 

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