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Africa Wealth. Over the next ten years, there will be a 42% increase in the number of millionaires in Africa, where there is currently USD 2.4 trillion in investable wealth.

Africa Wealth

Africa Wealth

According to Henley & Partners' most recent 2023 Africa Wealth Report, which was released in collaboration with New World Wealth, the continent's "Big 5" wealth markets—South Africa, Egypt, Nigeria, Kenya, and Morocco—collectively are home to 56% of all high-net-worth individuals (HNWIs) and more than 90% of all billionaires.

138,000 HNWIs with investable wealth of USD 1 million or more, 328 centi-millionaires with assets of USD 100 million or more, and 23 US dollar billionaires presently reside in Africa.

 

Wealth leaders

South Africa still has more HNWIs than any other African nation and accounts for a staggering 30% of the continent's centi-millionaires, despite the last ten years being difficult. Egypt is the country with the greatest number of billionaires, while Mauritius has the highest average wealth per person in Africa, at USD 37,500. South Africa and Namibia come in second and third, respectively, with USD 10,880 and USD 10,050.

 

Africa Wealth Report

A thorough analysis of the wealth sector in Africa, including trends among HNWIs, the luxury market, and wealth management, is provided by the 8th edition of the 2023 Africa Wealth Report, which serves as the continent's yearly benchmark for wealth inquiry. According to New World Wealth's Head of Research, Andrew Amoils, "wealth" is defined as an individual's net investable assets, which include cash, real estate, and shares in listed companies."

 

The world's fastest-growing markets

 Some of the fastest-growing markets in the world, such as those in Rwanda and Mauritius, are found in Africa. Forecasts indicate that Mauritius will grow its wealth at the fastest rate—75%—during the next ten years (2032). After Vietnam, India, and New Zealand, this will rank it as the fourth fastest-growing nation in the world during this period in terms of millionaire growth percentage.

Africa is open for business, according to Louisa Mojela, Group Chairman of the black women-owned investment firm WIPHOLD, who commented on the report. Africa is recognized as the continent with the fastest-growing population, which implies that it has the highest potential for investment opportunities. From the perspective of potential investment growth, being the poorest continent also holds the dubious distinction of presenting a plethora of opportunities. Without a doubt, the most extensive and rewarding opportunities for impact investing are found in Africa.

 

Wealthiest cities and residential areas 

South Africa is home to four of the continent's ten wealthiest cities: with 14,600 millionaires, Johannesburg leads the continent, followed by Cairo (7,400 HNWIs) and Cape Town (7,200). With 5,400 millionaires, Lagos is ranked fourth, and Nairobi is ranked fifth with 4,700. The other two South African cities in the Top 10 are Pretoria, which comes in at number eight with 2,400 HNWIs, and Durban, which comes in at number six with 3,600.

 

The largest residential markets in the world

Some of the most affluent residential neighborhoods in the world can be found in South Africa, such as Sandhurst in Johannesburg, Beachy Head Drive in Plettenberg Bay, and Clifton in Cape Town. Based on the most recent data from New World Wealth, about 3,700 South African homes are estimated to be worth more than $1 million. South Africa is in line with major emerging markets like India and Brazil and ranks among the top 20 global prime residential markets, far ahead of other African nations.

 

fastest-growing markets

Namibia is predicted to have high-net-worth growth of more than 60% by 2032, making it one of Africa's fastest-growing markets going forward. With 2,100 dollar millionaires, the nation's investable wealth currently amounts to USD 26 billion. Due to Namibia's many advantages, including its source-based tax system, which taxes foreign residents only on the income they make in Namibia, the country is expected to draw in more high-net-worth investors with its recently launched residence-by investment offering.

 

world's largest uranium reserves

Senior Manager Catherine Shipushu of the Namibia Investment Promotion and Development Board comments in the report that the nation is rich in natural resources, such as gold, copper, uranium, and diamonds. In addition to having one of the largest uranium reserves in the world, Namibia is currently garnering attention from around the world due to recent discoveries of offshore gas and oil reserves.

With its ambitious plans to become Africa's hub for sustainable energy, the nation's advantageous location and first-rate port provide it with easy access to more than 300 million people in neighboring African markets.

 

Encouraging foreign investment

More African nations are aiming to draw high net-worth individuals (HNWIs) by offering citizenship and residency through investment opportunities that could revolutionize their economies by bringing in vital foreign capital and promoting sustainable growth, according to Dominic Volek, Group Head of Private Clients at Henley & Partners.

"We anticipate that investment migration will continue to gain traction in Africa in the coming years, both on the supply side, where more and more African countries are looking to launch their investment migration programs to increase the inflow of both capital and talent, and on the demand side, where African HNWIs looking to improve their travel freedom and economic mobility, secure location optionality, and mitigate risk."