WEALTH

Africa loses some of its super-rich, but more millionaires on the way

By our African Marketing Confederation News Team | 2024

Most very wealthy found in South Africa, Egypt, Nigeria, Kenya, and Morocco. Mauritius and Namibia are rising stars of next decade.

Africa’s millionaire population is set to rise by 65% over the next 10 years, according to the annual Africa Wealth Report published by international wealth advisory firm, Henley & Partners, in collaboration with New World Wealth.

Photo by Cottonbro Studio from Pexels 

 

The 2024 report reveals that there are currently 135,200 high-net-worth individuals (HNWIs) with liquid investable wealth of US$1-million or more living on the continent. There are 342 centi-millionaires (worth $100-million or more), and 21 dollar billionaires. 

 

Most of the super-wealthy are found in five countries: South Africa, Egypt, Nigeria, Kenya, and Morocco. Together, they account for 56% of the continent’s millionaires and over 90% of its billionaires. 

 

Dominic Volek, Group Head of Private Clients at Henley & Partners, says wealth growth on the continent has not been without its setbacks. 

 

“Currency depreciation and underperforming stock markets have chipped away at Africa’s wealth compared to global benchmarks,” he states. 

 

Currencies in most 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. South Africa’s currency depreciated by 43%. 

 

Migration is eroding some African wealth 

 

African nations are also losing large numbers of HNWIs to migration, which is eroding the continent’s wealth. 

 

Explains Andrew Amoils, Head of Research at New World Wealth: “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 … 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.” 

 

Despite a tough past decade which 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. 

 

It is followed by Egypt with 15,600 millionaires, 52 centi-millionaires, and seven billionaires. Nigeria sits in third place with 8,200 HNWIs. 

 

Over the next decade (to 2033), the likes of Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda and Rwanda are all expected to experience 80%-plus millionaire growth.  

 

Mauritius, with its stable governance and favourable 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, the report says. 

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Rozanne