The largest economy and most populous country in Africa, Nigeria, and four other African countries which include South Africa, Egypt, Morocco, and Kenya account for 50% of Africa’s wealth.
In a report by Henley & Partners in partnership with New World Wealth, private wealth in Africa amounted to $2.4 trillion as several African cities such as Lagos, Nairobi, Johannesburg, Cairo, and Cape Town, account for 56% of the continent’s high net-worth individuals (HNWIs).
Currently, there are approximately 138,000 HNWIs in Africa with an investable wealth of $1 million or more, along with 328 centi-millionaires worth $100 million or more, and 23 US-dollar billionaires.
South Africa, a country on the southernmost tip of the African continent, is home to at least twice as many HNWIs than any other African country, accounting for 30% of the continent’s centi-millionaires. At the end of 2022, the country was home to 37,800 US dollar millionaires, the most millionaires in Africa, accounting for over 27% of the 138,000 millionaires on the continent. Reports reveal that South Africa is expected to have over 55,000 HNWIs by 2032.
While African country located in the northeastern corner of Africa, Egypt, accounts for the most billionaires. On the other hand, the Indian Ocean island nation, Mauritius, boasts by far the highest wealth per capita (average wealth per person) in Africa, at USD 37,500. In terms of projections, the country is expected to experience the highest wealth growth rate at 75% over the next decade (2032).
Commenting on the report, the Group Chairman of the black women-owned investment company, WIPHOLD, Louisa Mojela, disclosed that Africa undoubtedly holds the greatest potential for investment prospects, and is always open for business.
In her words, “Known as the continent with both the youngest and fastest growing population means that Africa naturally holds the greatest potential for investment prospects. Additionally, having the dubious honor of also being the poorest continent opens up a myriad of opportunities from an investment growth potential point of view. Without doubt, Africa provides the broadest and most fulfilling opportunities for impact investing.”
Investors King understands that Africa’s highest wealth was recorded in 2012 at $2.4 trillion while 2017 had the highest number of dollar millionaires at 148,000.
New World Wealth has predicted a healthy wealth growth of 38% for Africa in the next ten years and reach US$3 trillion by 2031. It also noted that eastern African countries are projected to anchor this rise, with over 60% growth expected in Uganda and Rwanda by 2031, and over 50% in Kenya and Zambia.