POLL | If you were a billionaire, would you leave Africa?

A recent report on billionaires leaving the continent has reignited the debate on leaving Africa.

The “Africa Wealth Report”, published by Henley & Partners in partnership with New World Wealth, said thousands of rich investors and their families are choosing to relocate outside Africa. 

“A large number of billionaires have left Africa over the past 20 years or so. Notably, there are 52 Africa-born billionaires globally, of whom only 23 still live on African soil.

"This is a significant concern as many billionaires are entrepreneurs and company founders who therefore have the ability to create significant employment in their host countries. Billionaires rarely move for tax reasons. They usually relocate to expand their businesses or due to safety concerns,” the report said. 

It expects 88,000 dollar millionaires to leave their countries, a figure still lower than in 2019, when 110,000 moved.

Managing partner at Henley & Partners South Africa, Amanda Smit, said the departures pointed to a drop in confidence in their home country.

The UK, US, United Arab Emirates, Australia, Canada, France, Israel, Monaco, New Zealand, Portugal and Switzerland are all popular destinations for those leaving.

While some said they would leave the continent given the chance, others said they could never move.

Armien Tyer, managing executive of Absa Private Wealth Banking, said trends showed some kept links to their country of origin, including some physical residency.

“For all South Africa’s obvious issues, some of which appear insurmountable right now, it still offers great opportunities in many commercial endeavours, with lifestyles that are incomparable to almost anywhere in the world. Lastly, the ability to make a difference and create a legacy is tremendous if the quest is not just about how much money you can accumulate,” he said.

Standard Bank warned earlier this year renewed emigration by skilled and high-income earners poses a threat to South Africa’s fragile tax system, which is already resting on a pinhead.

“Emigration is a budding threat to South Africa’s public finances given the disproportionate reliance on a few hundred thousand individuals who contribute the bulk of South Africa’s tax take — not just income taxes, but also indirect taxes.”

Another consideration is what to do with your pets when you leave.

The Sunday Times recently reported how those emigrating were paying thousands to take their animals with them.

Among the costs were for microchipping, rabies shots, flights, custom-made containers, quarantine, customs clearance and collection and delivery.

TimesLIVE

Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.