Rédaction Africa Links 24 with Georgina Crouth
Published on 2024-04-17 19:16:06
The latest Africa Wealth Report suggests that Africa’s poor are becoming poorer, while the rich are getting richer and the super-rich are leaving the continent. According to the report, Africa has lost more than 12% of its wealthiest citizens over the past decade. South Africa, in particular, has seen a significant decline, losing 20% of its millionaires during the same period. Despite having the highest number of high-net-worth individuals (HNWIs) in Africa, with 37,400 millionaires, 102 centi-millionaires, and five billionaires, South Africa has experienced a decrease in its wealthy population.
Egypt ranks second in terms of HNWIs, with 15,600 millionaires, 52 centi-millionaires, and seven billionaires, followed by Nigeria, Kenya, Morocco, Mauritius, Algeria, Ethiopia, Ghana, and Namibia. The Africa Wealth Report, published by Henley & Partners and New World Wealth, reveals that 18,700 HNWIs have left Africa since 2013, resulting in a decline in the continent’s wealthy population.
While Africa is home to some of the world’s richest individuals, such as Elon Musk, 33 African-born billionaires no longer reside on the continent. Only 21 billionaires remain in Africa, collectively holding assets worth $2.5 trillion. The top five wealth markets in Africa, including South Africa, Egypt, Nigeria, Kenya, and Morocco, account for a significant portion of the continent’s millionaires and billionaires.
Johannesburg remains the wealthiest city in Africa, with a high concentration of millionaires, centi-millionaires, and billionaires. However, Cape Town is on track to surpass Johannesburg as the continent’s richest city by 2030. The report predicts that several major companies based in Johannesburg will relocate their headquarters to Cape Town in the next decade, leading to increased wealth growth in the city.
African countries are also experiencing a significant outflow of HNWIs due to migration, with many wealthy individuals moving to countries like the UK, the US, Australia, and the UAE. The report highlights currency depreciation and underperforming stock markets as factors contributing to Africa’s wealth erosion compared to global benchmarks.
Looking ahead, Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda, and Rwanda are expected to see a substantial increase in millionaire growth over the next decade. Despite challenges, the report emphasizes the potential for growth and economic development in sub-Saharan Africa, positioning the region as one of the fastest-growing in the world.
In conclusion, the Africa Wealth Report sheds light on the changing wealth dynamics in Africa and the factors influencing the continent’s economic landscape. The report underscores the need for sustainable wealth creation and retention strategies to support Africa’s continued growth and development in the global economy.
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