Africa’s population of high-net-worth individuals (HNWIs) is poised for significant growth, reaching an estimated 195,000 by 2032.
This marks a 42% increase from the 138,000 HNWIs recorded in 2022, as outlined in the Africa Wealth Report 2023.
Mauritius is expected to be a standout performer in this growth, with a forecasted 75% increase in its HNWI population over the next decade.
Nigeria has a total of 9.800 millionaires and approximately 4 billionaires such as Aliko Dangote, Abdulsamad Rabiu, Mike Adenuga, and Femi Otedola.
Meanwhile, South Africa has the highest number of millionaires sitting at number one with 37,800 and Egypt with 16,100.
However, the overall growth of HNWIs in Africa has been hindered by a 12% decline since 2012. This decline is primarily attributed to sluggish economic performance in the continent’s three largest markets: South Africa, Egypt, and Nigeria.
For example, Nigeria’s Gross Domestic Product (GDP) registered a year-on-year growth of 2.51% in real terms in the second quarter of 2023, which is a slight improvement from the previous quarter, but a decline compared to the corresponding period in 2022.
This slowed growth can be attributed to issues such as energy shortages, transportation bottlenecks, and currency devaluation pressures.
More insight
The report highlights specific indicators that contribute to wealth creation. Factors such as a country’s safety levels, and the efficiency of its local law enforcement play a pivotal role in encouraging long-term wealth growth.
According to New World Wealth’s safety index for 2022, Mauritius is rated as the safest country in Africa, closely followed by Namibia.
It is worth noting that while most industries boost a country’s GDP, only a select few contribute to wealth creation.
Industries that bring in new foreign exchange, such as technology, mining, manufacturing, and certain segments of the tourism sector like luxury hotels and lodges, are instrumental in building a nation’s wealth.
Additionally, a well-developed banking system and a robust stock market are crucial components in fostering wealth growth.
Over the past decade (2012 to 2022), approximately 18,500 high-net-worth individuals have left Africa. The primary destinations for these migrations have been the United Kingdom, the United States, and the United Arab Emirates.
Significant numbers have also relocated to countries including Australia, Canada, France, Israel, Monaco, New Zealand, Portugal, and Switzerland.
