Africa is poised to see a record 42 percent growth in its millionaire population over the next decade, as some of the world’s fastest-growing markets contribute to a private wealth pool estimated at $2.4 trillion, according to the 2023 Africa Wealth Report by Henley & Partners and New World Wealth.
Five African nations – South Africa, Egypt, Nigeria, Kenya, and Morocco – host over 56 percent of the continent’s High-Net-Worth Individuals (HNWIs) and more than 90 percent of its billionaires. South Africa leads the pack with twice the number of HNWIs as any other African country and claims 30 percent of Africa’s centi-millionaires. Johannesburg, its capital, is regarded as Africa’s most affluent city, with significant wealth concentrated around the Sandton City shopping mall.
Egypt follows South Africa, boasting a considerable number of billionaires in its capital, Cairo, where lucrative industries such as financial services, telecoms, retail, tourism, and basic materials thrive. Kenya, another major player, has experienced significant growth in its capital, Nairobi, the economic hub of the East African Community (EAC) and one of the world’s fastest-growing cities. Nairobi is home to Africa’s oldest and most established luxury residential suburbs, as well as thriving industries like financial services, tourism, media, real estate, tea, textiles, and tobacco.
Although Africa’s HNWI population has dropped by 12 percent in the decade leading up to 2022, with South Africa,
Egypt, and Nigeria experiencing poor growth, several African countries have performed exceptionally well. Rwanda’s millionaire growth stands at 72 percent, with Mauritius, the Seychelles, Uganda, and the Democratic Republic of the Congo following closely behind. Morocco and Kenya have also seen solid growth in their HNWI populations.
Ethiopia and Ghana, which previously enjoyed rapid growth in their millionaire populations until 2019, have faced challenges in recent years that have impacted their 10-year growth rates.
Looking ahead, Africa’s millionaire population is predicted to reach around 195,000 by 2032, reflecting a 42 percent increase. Mauritius is expected to outperform other countries, with a forecasted 75 percent growth over the next decade. Other strong performers are anticipated to be Namibia, Rwanda, Zambia, the Seychelles, the Democratic Republic of the Congo, and Morocco, each predicted to see high-net-worth individual growth exceeding 60 percent.
Despite not being part of the top five countries, Mauritius boasts the highest wealth per capita (average wealth per person) in Africa at $37,500, followed by South Africa at $10,880 and Namibia at $10,050.
The impressive growth rates in these fast-growing African markets and the projected increase in the number of millionaires highlight the vast potential and opportunities for investors and entrepreneurs alike. As wealth continues to rise in the continent, it is expected to create a positive ripple effect on various sectors, spurring further economic growth and development across Africa.