According to the 2024 Annual Africa Wealth Report, more than 90% of Africa’s billionaires and at least 56% of its millionaires are from Nigeria, South Africa, Egypt, Kenya, and Morocco.
The global wealth intelligence partner New World Wealth and the worldwide wealth consulting firm Henley & Partners collaborated to create the research, which said that: “There are currently 135,200 high-net-worth individuals (HNWIs) with liquid investable wealth of USD 1 million or more living in Africa, along with 342 centi-millionaires worth USD 100 million or more, and 21 dollar billionaires.”
The survey also estimated that there is USD 2.5 trillion in investable wealth on the African continent and predicted a 65% increase in millionaires over the next ten years.
It further reveals: “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 10 years.”
The group Head of Private Clients at Henley & Partners, Dominic Volek, claims that there have been some challenges with the continent’s wealth expansion: “Currency depreciation and underperforming stock markets have chipped away at Africa’s wealth compared to global benchmarks. For instance, the South African rand fell 43% against the US dollar from 2013 to 2023, and even though the JSE All Share Index, which makes up well over half of Africa’s listed company holdings, rose in local currency terms, it was down 5% in US dollar terms over that period.
“Currencies in most other African countries also performed poorly compared to the dollar over the past 10 years, with dramatic depreciations of over 75% recorded in Nigeria, Egypt, Angola, and Zambia,” Volek added.
In response, New World Wealth’s Head of Research, Andrew Amoils, notes that migration is taking a significant toll on HNWIs in African countries, further depleting the continent’s wealth. He said: “According to our latest figures, approximately 18,700 high-net-worth individuals have left Africa over the past decade (2013 to 2023).
“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. Most of these individuals have relocated to the UK, the USA, Australia, and the UAE. Significant numbers have also moved to France, Switzerland, Monaco, Portugal, Canada, New Zealand, and Israel.”
In addition, the research highlighted some of the world’s fastest-growing markets and pointed out that South Africa is the country with more HNWIs than any other in Africa.
It reveals: “Despite a tough past decade that saw a 20% decline in its millionaire population, South Africa remains 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.”
With 8,200 HNWIs, Nigeria is ranked third among Africa’s wealthiest nations, behind Kenya (7,200 millionaires), Morocco (6,800), Mauritius (5,100), Algeria (2,800), Ethiopia (2,700), Ghana (2,700), and Namibia (2,300).
Adding: “Going forward, 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, with its stable governance and favorable tax regime, is projected to experience a remarkable 95% growth rate, positioning it as one of the world’s fastest-growing wealth markets. Namibia, too, is poised for impressive high-net-worth growth, which is forecast to exceed 85% by 2033. Both Mauritius and Namibia offer investment migration pathways to attract global investors.”
Renowned South African political analyst, newspaper columnist, and best-selling author, Justice Malala comments on the 2024 Africa Wealth Report, stating that Sub-Saharan Africa would develop at the second-fastest rate in the world in 2024, behind Asia, with growth estimated at 4% by the IMF, BrandSpur news reports.
According to Malala: “The African Development Bank predicts that Africa will account for 11 out of the 20 fastest-growing economies in the world this year. And with a new global political order emerging, African voices are also being elevated in international decision-making bodies.
“With Russia, China, the USA, and the EU all jostling for favor on the continent, African leaders have become more emboldened and are demanding a seat at the top tables. These developments will lead to closer relationships between continental leaders and other ‘middle powers’ such as India, Turkey, Argentina, and Saudi Arabia. Already, Ethiopia and Egypt have joined the BRICS grouping, and the African Union has become a permanent member of the G20., Previously, only South Africa was in these exclusive clubs,” he added.
He further had this to say: “At the city level, Johannesburg holds its place as the wealthiest city 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 urban wealth hubs.”
Amoils states that the following towns and locations are predicted to have an increase in the number of millionaires by more than 85% over the next ten years: Cape Town, the Whale Coast of South Africa, Kigali, Windhoek, Swakopmund, Nairobi, Tangier, and Marrakech.
