The number of high net worth individuals (HNWIs) in Africa is expected to grow by 42% over the next decade, with investment migration gaining ground in the region.
According to a report by Henley & Partners in partnership with New World Wealth, private wealth in Africa tops $2.4 trillion, with five cities accounting for over 50% of the continent's wealth. These cities include Johannesburg, Cairo, Cape Town, Lagos and Nairobi, and also account for 56% of the continent's high net worth individuals (HNWIs).
The report states that there are currently 138,000 HNWIs in Africa with investment assets of US$1 million or more, along with 328 with values of US$100 million or more and US$23 billion.
South Africa is home to at least twice as many HNWIs as any other African country, representing 30% of the continent's centi-millionaires. Egypt, on the other hand, accounts for the majority of billionaires.
Dominic Volek, Head of Private Client Group at Henley & Partners, believes that more African countries will begin to attract HNWI`s, providing residency and citizenship through investment opportunities with the potential to transform their economies.
"As wealth grows on the continent, we expect to see investment migration continue to gain ground in Africa, not just on the demand side of African HNWI`s looking to improve travel freedom and economic mobility, ensure location optionality and mitigate risks, but also on the supply side, with more and more African nations looking to launch their own programs to increase the inflow of capital and talent”.
The report also highlights some of the world's fastest growing markets, including Rwanda, Mauritius and the Seychelles, which have seen wealth growth of 72%, 69% and 54% respectively over the past decade.
Mauritius is expected to experience the highest growth rate of private wealth at 75% over the next decade (by 2032), making it the fourth fastest growing country in the world in terms of percentages of millionaire growth, after Vietnam, India and New Zealand.
Namibia could also see its private wealth grow by more than 60% over the next 10 years, as its recently launched residence by investment offer is likely to attract high net worth investors from around the world.
The millionaire population on the African continent is expected to increase by 42% over the next decade. Today, Africa has some of the fastest growing markets in the world, making it an attractive destination for HNWI`s.
