Africa’s ‘big-5’, Nigeria, SA, Egypt, Kenya, Morocco has 56% of its HNIs

By Ben Eguzozie 

 

• Private wealth held by millionaire population hits $2.4trn

Nigeria, South Africa, Egypt, Kenya and Morocco known as the ‘Big 5’ together account for 56 percent of Africa’s high-net-worth-individuals (HNWIs) and more than 90 percent of the continent’s billionaires, a new Africa Wealth report 2023 published by Henley & Partners, in partnership with New World Wealth, has found.

Also, the total private wealth currently held in Africa is now $2.4 trillion, with the continent’s millionaire population expected to rise by 42 percent over the next 10 years, the report titled “2023 Africa Wealth Report”, further said.

In particular, there are currently 138,000 HNWIs with private wealth of $1 million or more living in Africa, along with 328 centi-millionaires worth $100 million or more, and 23 US dollar billionaires.

Additionally, Credit Suisse in September last year, in its Global Wealth Report, found that 2021 “produced exceptionally favourable conditions for household wealth growth”, with the number of global ultra-high-net-worth individuals – UHNW (those with assets exceeding $50 million) hitting record high to 218,200 after post-pandemic “explosion of wealth”.

South Africa, despite a tough past decade, is still home to at least twice as many HNWIs as any other African country, and 30 percent of the continent’s centi-millionaires. Egypt takes the prize for the most billionaires, and Mauritius boasts the highest wealth per capita (average wealth per person) in Africa, at $37,500, followed by South Africa at $10,880 and Namibia at $10,050.

Africa is home to some of the world’s fastest growing markets, including Rwanda, Mauritius, and the Seychelles, which have seen wealth growth of 72 percent, 69 percent, and 54 percent, respectively over the past decade.

In terms of projections, Mauritius is expected to experience the highest private wealth growth rate at 75 percent 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.

For Namibia, a ten-year private wealth growth rate of over 60 percent is forecast, with its recently launched ‘residence by investment offering’ likely to attract high-net-worth investors from across the globe.

Commenting on the report, Catherine Shipushu of the Namibia Investment Promotion and Development Board, said the country has one of the largest uranium reserves in the world; and is attracting international attention with recent discoveries of gas and oil reserves.

“With bold ambitions of becoming the sustainable energy capital of Africa, Namibia’s strategic location and world-class port make it an ideal gateway to over 300 million people in other African markets,” Shipushu said.

According to Dominic Volek, group head of private clients at Henley & Partners, more African countries are setting their sights on attracting 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,” Volek said.