Despite its decline over the past decade, the number of wealthy individuals in Africa is set to almost double by 2032.
The population of millionaires in Africa is set to grow by 42% over the next ten years, reaching around 195,000 by 2032. This is one of the findings of the 2023 Africa Wealth Report, published by Henley & Partners in collaboration with New World Wealth, a company specializing in wealth intelligence.
Mauritius stands out from the crowd, with a predicted growth rate of 75% over the coming decade. Growth rates of over 60% are also anticipated for Namibia, Rwanda, Zambia, Seychelles, the Democratic Republic of Congo and Morocco.
Over the past decade (2012-2022), Rwanda ranks as the best-performing African market, with a 72% increase in the number of millionaires, closely followed by Mauritius, Seychelles, Uganda and the Democratic Republic of Congo.
Ongoing difficulties
However, the report points to a 12% drop in the total number of HNWIs (High Net Worth Individuals) in Africa over the same period. This decline is mainly due to slow growth in the three largest African markets: South Africa, Egypt and Nigeria. Ethiopia and Ghana, which had recorded rapid growth in their millionaire populations up to 2019, have also encountered challenges in recent years, impacting their growth rates over the decade.
This reduction in the number of millionaires in Africa stems in particular from the departure of around 18,500 HNWIs from the continent over the past decade, while only 23 of the 52 African-born billionaires still reside on the continent. The majority of these wealthy individuals have emigrated to the United Kingdom, the United States and the United Arab Emirates. A significant number have also settled in Australia, Canada, France, Israel, Monaco, New Zealand, Portugal and Switzerland.
The top five wealth markets in Africa – South Africa, Egypt, Nigeria, Kenya and Morocco – are home to 56% of African HNWIs and over 90% of the continent’s billionaires. South Africa leads the top 10 richest countries in terms of wealthy residents, by a considerable margin.
[arm_restrict_content plan=”1,” type=”show”]
Attractiveness of ecotourism
The report highlights the growing popularity of eco-friendly activities among Africans, particularly among wealthy individuals.
Although ecotourism requires a more nuanced and thoughtful approach than conventional tourism, the presence of major international hotel chains on the continent testifies to the financial commitment of solid stakeholders, already invested and potentially interested in exploring this new field, say the report’s editors. This does not, of course, prevent new entrants from investing in this sector or collaborating with well-established international hotel chains.
This underlines the growth potential of the continent’s tourism sector, which is currently enjoying a revival, and its function as a major job creator, both locally and in related areas such as food supply, services and manufacturing, the report further emphasizes.
Women entrepreneurs
Another interesting finding of the Global Entrepreneurship Monitor 2021/22 report on Women’s Entrepreneurship is that women in Africa are more likely than men to run their own businesses on the continent.
According to the report, women also play a significant and multifaceted role in the continent’s overall wealth creation. They contribute, for example, through their consumer spending, their participation in the workforce and their commitment as business owners. At the same time, women entrepreneurs are drivers of innovation and economic growth.
The report expresses the idea that it would be positive to see African women get involved in ecotourism initiatives and grow their small farms into thriving businesses. This could lead to an increase in the number of women entering the category of high net worth individuals, centimillionaires and potentially billionaires in the future.
[/arm_restrict_content] [arm_restrict_content plan=”1,” type=”hide”] [elementor-template id=”101048″] [/arm_restrict_content]
Read also>AKSAL LUXURY, LEADING PARTNER FOR LUXURY BRANDS IN AFRICA
Featured photo: © AdobeStock
