The study was conducted by Henley & Partners in partnership with New World Health (a South African economic intelligence firm).
Mauritius, Rwanda and Uganda are forecast to increase non-state wealth fastest, by at least 60%. Other countries projected to do well are Kenya, Morocco, Mozambique and Zambia.
The CEO of MyGrowthFund Venture Partners Busi Thembekwayo notes that “Africa’s story is one of polar domination, with the largest wealth management centres traditionally situated in the most extreme south – South Africa – and the most extreme north – Egypt and Morocco.”
Thembekwayo notes the rise of economies such as Mauritius and the Seychelles, who position themselves as preferred investment destinations.
Africa currently has 136,000 high net worth individuals (HNWIs) worth $1m or more, 305 centimillionaires ($100m or more) and 21 dollar billionaires.
South Africa leads the number of HNWIs, but Egypt has taken over for the largest number of billionaires. This is due to a noted trend in the report on the migration of South African HNWIs. For example, out of the 15 living South African billionaires today, only five still live in their home country.
In terms of average wealth per person, Mauritius leads at $34,500, with South Africa second at $10,970. The ‘big five’ countries – South Africa, Egypt, Nigeria, Morocco, and Kenya – hold over 50% of the continent’s private wealth.
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However, Amanda Smit, Managing Partner of Henley & Partners South Africa, points out that “no matter how well or poorly a country is performing today, one thing has become very clear in our new age of uncertainty – governments and investors alike must focus on building resilience.”
Is it all good news?
According to Andrew Amoils, head of research at New World: “Our growth forecast for Africa is very healthy when compared to most other regions globally. We expect especially strong growth in the centi-millionaire wealth band.”
This is positive news for a continent whose economy has also been affected by the effects of Covid-19 and Russia’s invasion of Ukraine.
It is also projected that there will be a diversification of the sources of wealth, but Thembekwayo reminds us that “the unanswered question is whether this growth will be more evenly spread and begin to reduce inequality.”