LONDON, April 16,
2024 /PRNewswire/ -- The total investable wealth
currently held on the African continent amounts to USD 2.5 trillion and its millionaire population
is set to rise by 65% over the next ten years, according to
the 2024 Africa Wealth Report, published by international
wealth advisory firm Henley & Partners.
Now in its 9th edition, the annual report reveals
there are currently 135,200 HNWIs with investable wealth of
USD 1 million or more living in
Africa, along with 342
centi-millionaires and 21 dollar
billionaires. Africa's "Big 5"
wealth markets — South Africa,
Egypt, Nigeria, Kenya, and Morocco — together account for 56% of the
continent's millionaires and over 90% of its billionaires.
But, as Dominic Volek, Head of
Private Clients at Henley & Partners points out, currency
depreciation and underperforming stock markets have chipped away at
Africa's wealth compared to global
benchmarks: "The South African Rand fell 43% against the US dollar
from 2013-2023, and even though the JSE All Share Index rose in
local currency terms, it was down 5% in USD terms. Currencies in
most other African countries also performed poorly over the past
decade, with dramatic depreciations of over 75% recorded in
Nigeria, Egypt, Angola
and Zambia."
Head of Research at New World Wealth Andrew Amoils adds that African nations are also
losing large numbers of HNWIs to migration which is eroding the
continent's wealth: "Approximately 18,700 high-net-worth
individuals have left Africa over
the past decade. There are currently 54 African born billionaires
in the world, including one of the world's richest, Elon Musk, but only 21 of them still live on the
continent."
Africa's Wealthiest
Countries and Cities
Despite a tough past decade, South
Africa is still home to over twice as many HNWIs as any
other African country, with 37,400 millionaires, 102
centi-millionaires, and 5 billionaires, followed by Egypt with 15,600 millionaires, 52
centi-millionaires, and 7 billionaires. Nigeria sits in 3rd place with
8,200 HNWIs, followed by Kenya
(7,200 millionaires), Morocco
(6,800), Mauritius (5,100),
Algeria (2,800), Ghana (2,700), Ethiopia (2,700) and Namibia (2,300) all making it into
the Top 10 wealthiest countries in Africa.
Over the next decade (to 2033), the likes of Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda
and Rwanda are all expected to
experience 80%+ millionaire growth. Mauritius is projected to enjoy a remarkable
95% growth rate, positioning it as one of the world's
fastest-growing wealth markets.
At the city level, Johannesburg
holds its place as the wealthiest in Africa, with 12,300 millionaires, 25
centi-millionaires, and 2 billionaires. Cape Town follows closely with 7,400
millionaires, 28 centi-millionaires, and 1 billionaire.
Cairo (7,200 millionaires),
Nairobi (4,400), and Lagos (4,200) also stand out as key African
urban wealth hubs.
Cape Town, the Whale Coast,
Kigali, Windhoek, Swakopmund, Nairobi, Tangier and Marrakech are all
expected to enjoy 85%+ millionaire growth over the next ten years.
Cape Town also leads the way when
it comes to luxury real estate at USD
5,600 per m2, with Grand Baie in Mauritius close behind at USD 5,000 per m2. South Africa has five contenders in the Top 10
Most Expensive African Cities and Morocco has three.
Africa's lack of economic
mobility
Commenting in report, Prof. Mehari
Maru, from the Migration Policy Centre at the European University Institute, says African visa
applicants face far more severe restrictions compared to other
regions: "Africa tops the list of
rejections with 30% or one in three of all processed applications
being turned down, even though it has the lowest number of visa
applications per capita. The rejection rates for Schengen visas are
ten times higher than for US-Americans. Despite justifications
based on security or economic concerns, the European visa system
clearly demonstrates apparent bias against African applicants."
Chidinma Okebalama, Senior
Consultant at Henley & Partners Nigeria, says: "Your passport
serves as a determinant of financial freedom, impacting
individuals' abilities to explore international business ventures,
network efficiently, or engage in multinational trade
opportunities. Consequently, African entrepreneurs and investors
are often left out of lucrative global markets, impeding their
potential for economic growth and financial prosperity."
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SOURCE Henley & Partners