Africa records 7,100 multi-millionaires

There are 7,100 multi-millionaires living in Africa, each with net assets of $10 million or more.

 

There are over 320 centi-millionaires,
each with net assets of $100 million or more; and 24 billionaires each
with net assets of $1 billion or more.

 

AfrAsia Bank Wealth Report 2018, says
that total private wealth held in Africa is also expected to rise by 34
per cent over the next 10 years, reaching $3.1 trillion by the end of
2027.

 

“We expect Mauritius, Ghana, Rwanda and
Uganda to be the strongest performing wealth markets in Africa during
this period (with 90 per cent to 150 per cent growth rates).

 

“Our projections for Ethiopia,
Mozambique, Zambia, Kenya, Botswana and Namibia are also relatively
solid (50 per cent to 80 per cent growth rates),” the report said.

 

Tanzania, South Africa, Angola, Morocco,
Egypt, Ivory Coast, and Nigeria, however, have less favourable
forecasts, albeit positive, at between 10 and 30 per cent, mostly due to
policy and economic factors that are seeing high
net worth individuals hold back investments within these countries.

 

The African luxury sector generated about
$6 billion in revenue in 2017, mainly through the purchase of luxury
cars, clothing and accessories, watches, private jets, yachts and luxury
hotels and lodges.

 

It rated Rwanda and Uganda as countries in East Africa that are leading spots for wealth growth in Africa.

 

The countries are projected to have some of the strongest performing wealth markets in Africa in the next 10 years.

 

The analysis indicates that wealth held
in Africa has risen by 13 per cent in the past decade, and by 3 per cent
over the past year, with Mauritius topping the performing individual
markets.

 

In terms of wealth growth in the past
decade in East Africa, Rwanda led the region with 74 per cent rate,
followed by Kenya at 73 per cent, then Tanzania at 66 per cent and
Uganda at 56 per cent.

 

As at the end of 2017, Kenya topped the
region with the highest wealth that are held by individuals at $104
billion, followed by Tanzania and Ethiopia at $60 billion.

 

Within the continent, South Africa tops
in having the wealthiest individuals — holding $722 billion — followed
by Egypt at $330 billion and Nigeria at $253 billion.

 

The new report also shows that the
average African individual has net assets of $2,000, with more than
148,000 high net worth individuals (HNWIs) living in Africa, each with
net assets of $1 million or more.

 

A large portion of luxury sector revenue
in Africa comes from luxury hotels and lodges, with South Africa being
the main tourist destination.

 

In terms of wealthiest city, in East
Africa, Nairobi beat its regional peers, holding more than $54 billion
of private wealth held by the high net worth individuals.

 

Dar es Salaam was second in the region, at $25 billion, followed by Kampala at $16 billion, and Mombasa at $8 billion.

 

On the continent, Johannesburg topped at
$276 billion, followed by Cairo at $140 billion, then Lagos at $108
billion and Durban at $55 billion.

 

The major South African destinations for wealthy people are Kruger National Park, Cape Town, Umhlanga and Franschhoek.

 

In the rest of the continent, major
destinations included Mauritius, Seychelles, Marrakech and Casablanca in
Morocco, Cairo and Sharm El Sheikh in Egypt, Serengeti in Tanzania, the
Masai Mara game reserve in Kenya, Livingstone
Falls in Zambia and the Okavango swamps in Botswana.

 

In April, the Knight Frank’s Wealth
Report showed that Kenya had created 180 new dollar millionaires last
year, growing the number of persons with a net worth of over $5 million
to 1,290.

 

Out of the 1,290 dollar millionaires, 90
were worth $50 million with less 10 individuals estimated to have a net
worth of over $500 million.

 

Over the same period, 40 Tanzanians
entered the club of dollar millionaire’s worth over $5 million, pushing
the countries’ total to 250.