- Five African cities are home to more than half of the continent’s private wealth, with South Africa, Egypt, Nigeria, Kenya, and Morocco leading the way.
- The number of high-net-worth individuals (HNWIs) in Africa is expected to grow by 42% over the next decade, with investment migration gaining ground in the region.
- Mauritius is expected to see the highest private wealth growth rate at 75% over the next decade.
(Business Insider)-According to a report by Henley & Partners in partnership with New World Wealth, private wealth in Africa amounts to $2.4 trillion, with five cities accounting for over 50% of the continent’s wealth. These cities include Johannesburg, Cairo, Cape Town, Lagos, and Nairobi, and they also account for 56% of the continent’s high-net-worth individuals (HNWIs).
The report states that there are currently 138,000 HNWIs in Africa with investable wealth of $1 million or more, along with 328 centi-millionaires worth $100 million or more, and 23 US-dollar billionaires. South Africa is home to at least twice as many HNWIs as any other African country, accounting for 30% of the continent’s centi-millionaires. Egypt, on the other hand, accounts for the most billionaires.
Dominic Volek, Group Head of Private Clients at Henley & Partners, believes that more African countries will begin to attract HNWIs by providing residence and citizenship by investment opportunities that have the potential to transform their economies. “As wealth grows on the continent, we expect to see investment migration continue to gain ground in Africa not only on the demand side from African HNWIs looking to improve their travel freedom and economic mobility, secure location optionality, and mitigate risk, but also on the supply side, with more and more African nations looking to launch their own programs to increase the inflow of capital and talent.”
The report also highlights some of the world’s fastest-growing markets, including Rwanda, Mauritius, and the Seychelles, which have seen wealth growth of 72%, 69%, and 54%, respectively over the past decade. Mauritius is expected to experience the highest private wealth growth rate at 75% over the next decade (to 2032), making it the fourth fastest-growing country in the world in millionaire growth percentage terms, after Vietnam, India, and New Zealand. Namibia is also expected to see its private wealth grow over 60% in the next 10 years as its recently launched residence by investment offering likely attracts high-net-worth investors from across the globe.
It is worth noting that the millionaire population on the African continent is expected to rise by 42% over the next decade, and Africa currently boasts some of the world’s fastest-growing markets, making it an attractive destination for HNWIs looking to invest in the region.