Rédaction Africa Links 24 with Donald Matthys
Published on 2024-04-17 17:00:00
Namibia is poised to see a significant increase in its millionaire population over the next decade, with a projected addition of at least 2,000 millionaires by 2034. This forecast marks an 85% increase from the current 2,300 millionaires who hold assets amounting to N$19 million (approximately US$1 million). The country has established itself as one of Africa’s top 10 wealthiest nations, attracting investments and high-net-worth individuals from across the globe.
According to the Africa Wealth Report 2024 released by Henley & Partners, Namibia witnessed a 32% growth in its millionaire population from 2013 to 2023. The report attributes this growth to Namibia’s residence by investment programs, resource-rich economy, and strategic location, which are all factors that appeal to global investors.
The report highlights Swakopmund and Windhoek as two of Africa’s fastest-growing cities, with Swakopmund attracting a 43% increase in millionaires and being ranked as the fourth wealthiest city on the continent. Windhoek, on the other hand, saw a 30% rise in its millionaire population, making it the eighth fastest-growing city in Africa. Both cities have affluent suburbs that cater to high-net-worth individuals, with Swakopmund being a popular retirement destination for South African and German millionaires.
Namibia’s abundant resources, including uranium, diamonds, copper, and gold, along with recent discoveries of offshore oil and gas, have garnered global attention, highlighting the country’s economic potential. However, the report also underscores the challenge of inequality in Namibia, which ranks as the second-most unequal country in the world after South Africa. Economist Josef Sheehama warns that unless addressed, this inequality could impede the equitable distribution of new wealth and hinder efforts to alleviate poverty in the country.
While the influx of millionaires to Swakopmund and Windhoek may create job opportunities, Sheehama cautions that it may not necessarily improve the overall standard of living for the average Namibian. He points out that the high-net-worth individuals drawn to these cities may offer low salaries due to the high demand for employment, which could exacerbate existing income disparities.
Looking ahead, the report forecasts a 65% increase in Africa’s millionaire population, with significant growth expected in key industries such as fintech, eco-tourism, business process outsourcing, software development, mining, green tech, media, entertainment, and wealth management. The report emphasizes the importance of sustainable wealth creation and calls for responsive policies to address inequality and promote broad-based prosperity in Africa.
In conclusion, Namibia’s economic landscape is poised for growth and development, driven by its wealth potential and attractiveness to global investors. However, addressing inequality and ensuring that new wealth benefits all segments of society will be crucial for the country’s long-term prosperity.
Read the original article on The Namibian
