African business community may have to
look up to Rwanda and Uganda, countries in East Africa that have been
rated leading spots for wealth growth.
look up to Rwanda and Uganda, countries in East Africa that have been
rated leading spots for wealth growth.
The countries are projected to have some
of the strongest performing wealth markets in Africa in the next 10
years, AfrAsia Bank Wealth Report 2018, analysed.
of the strongest performing wealth markets in Africa in the next 10
years, AfrAsia Bank Wealth Report 2018, analysed.
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 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.
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.
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.
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.
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.
There are 7,100 multi-millionaires living
in Africa, each with net assets of $10 million or more; 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.
in Africa, each with net assets of $10 million or more; 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.
The report 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.
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).
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.
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.
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.
$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.
A large portion of luxury sector revenue
in Africa comes from luxury hotels and lodges, with South Africa being
the main tourist destination.
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.
Africa, Nairobi beat its regional peers, holding more than $54 billion
of private wealth held by the high net worth individuals.
The funds are invested in Kenya’s
financial services, real estate and construction, retail, tourism,
fast-moving consumer goods and telecommunication.
financial services, real estate and construction, retail, tourism,
fast-moving consumer goods and telecommunication.
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.
$276 billion, followed by Cairo at $140 billion, then Lagos at $108
billion and Durban at $55 billion.
Residential property normally constitutes
up to 35 per cent of the net assets of an average African HNWI, with
the popular properties for them including luxury apartments, beachfront
villas and homes in residential estates.
up to 35 per cent of the net assets of an average African HNWI, with
the popular properties for them including luxury apartments, beachfront
villas and homes in residential estates.
On this front, Nairobi and Mombasa were
the region’s favourite property investment destinations for the region’s
top dollar millionaires, followed by Kampala.
the region’s favourite property investment destinations for the region’s
top dollar millionaires, followed by Kampala.
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, the report says.
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, the report says.
Rwanda and Uganda’s gorilla safaris in the Virunga Mountains and the Bwindi Forest are also popular with this rich market.
The report shows that they patronise the
high-end hotels including La Mamounia in Morocco, the Four Seasons in
Seychelles and the 12 Apostles Hotel & Spa in Cape Town.
high-end hotels including La Mamounia in Morocco, the Four Seasons in
Seychelles and the 12 Apostles Hotel & Spa in Cape Town.
In terms of game lodges Ngorongoro Crater
Lodge in Tanzania, the Royal Livingstone in Zambia, Cottar’s 1920s
Safari Camp in Kenya and Singita in South Africa remain as their
favourite.
Lodge in Tanzania, the Royal Livingstone in Zambia, Cottar’s 1920s
Safari Camp in Kenya and Singita in South Africa remain as their
favourite.
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.
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.
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.
entered the club of dollar millionaire’s worth over $5 million, pushing
the countries’ total to 250.
