How much South Africa’s richest 10% owns

Net financial assets per capita in South Africa have risen to EUR 9,770 (R189,000), but the distribution is heavily imbalanced, with the richest 10% controlling 85% of the country’s total wealth.

South Africa’s financial assets are showing strong growth, but unequal distribution remains the nation’s Achille’s heel.

This is according to Allianz’s latest edition of its Global Wealth Report, which looks at the assets and debt situations of nearly 60 countries under the microscope.

Allianz said that 2023 was marked by sharp monetary tightening, but many economies provided resilience, and some markets even boomed.

Global financial assets of private households also recorded strong growth, increasing 7.6% following a loss of 3.5% the year prior.

Total financial assets grew to EUR 239 trillion at the end of 2023.

Financial assets in South Africa increased by 8.3% in 2023, showing a strong recovery after a dismal year in 2022 (+0.1%).

The main drivers were insurance/pensions (9.5%), the dominant asset call in South African households, with a share of 49%.

The two other asset classes, bank deposits and securities, also grew 7.5% and 7.0% over the year.

Financial assets only increased by 2.2% in 2023 when adjusted for inflation.

That said, compared to the pre-pandemic level of 2019, the purchasing power of financial assets was 12.3% higher at the end of 2023.

“This sharply contrasts many European economies where savers suffered four lost years in real terms,” said Allianz.

In line with the global trend, growth in liabilities slowed to 5.6% in 2023.

However, the debt ratio remained at 41%, which is on par with the pre-pandemic level and 8% below the record in 2008.

Net financial assets finally also advanced by a robust 8.9%. With net financial assets per capita of EUR 9,770 (R189,000), South Africa climbed one place to 38th place in Allianz’s rankings: