Africa Projected to Experience A 65% Surge in Millionaire Growth Over The Next Decade – Report
In a recent report by Henley & Partners, Africa is projected to experience a 65% surge in millionaire growth in the next 10 years.
This growth in wealth is projected to be fueled by strong growth in key sectors such as fintech, eco-tourism, business process outsourcing, software development, rare metals mining, green tech, media and entertainment, and wealth management.
In Africa, the continent is home to 135,200 millionaires, 342 centi-millionaires, and 21 billionaires, collectively holding a total investable wealth of USD 2.5 trillion.
The ‘Big 5’ wealth markets — South Africa, Egypt, Nigeria, Kenya, and Morocco — collectively account for 56% of Africa’s high-net-worth individuals (HNWIs) and over 90% of its billionaires.
South Africa leads the pack with 37,400 millionaires, 102 centi-millionaires, and 5 billionaires, followed by Egypt with 15,600 millionaires, 52 centi-millionaires, and 7 billionaires.
African nations such as Kenya, Morocco, Zambia, Mauritius, Namibia, Uganda, and Rwanda are all expected to experience at least 80 percent millionaire growth by 2033, the wealth advisory firm estimates.
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 once more. Namibia, too, is poised for impressive high-net-worth growth, with a forecast exceeding 85% by 2033.
The country’s inclination towards offering residence by investment, coupled with its resource-rich economy and strategic location, is expected to attract global investors.
However, the report highlights that there is an increasing number of wealthy Africans pursuing alternative residence or citizenship abroad, urging the African governments to foster an environment that encourages local investment and addresses talent and capital flight.
This according to them can be achieved through strengthening institutions, improving transparency, and implementing investor-friendly policies. By doing so, African nations can retain and attract wealth, ultimately unlocking the continent’s vast potential for wealth creation.
Photo credit: Business of Fashion (Bof)
