South Africa, Nigeria, Egypt, and Algeria, ranked among the top 20 countries on the number of enquiries received for investment migration in the previous year.
The report published by London-based Henley & Partners, one of the world’s largest citizenship advisory firms, highlights that South Africa, Nigeria, Egypt, and Algeria, were among the top 20 nationalities in terms of enquiries received last year for investment migration.
The Henley Global Citizens Report Q3 2022 revealed that South Africa and Nigeria were in the top 10 countries globally in terms of applications in 2022, and Algeria, Egypt, Ghana, Kenya, Morocco, and Uganda were among the other African countries producing high number of applications.
Investment migration gives the applicants access to more countries without a visa allowing to live, work, and study in other countries.
Investment migration, also known as citizenship by investment or golden visa schemes, is the process by which people and families become citizens or residents of a foreign nation by a sizable financial investment. The potential advantages of this practice have led to its rise in popularity. It provides access to improved business, healthcare, and educational prospects in the host nation. Additionally, it acts as a safety net, enabling people to flee to a stable location in the event that political or economic unrest occurs in their native nation. Another way to diversify your assets and take advantage of advantageous tax laws is through investment relocation. But given the financial and legal ramifications, it’s imperative to handle these initiatives carefully.
According to the Africa Wealth Report 2023, there has been a significant spike in interest in residence and citizenship by investment globally, with a 46% increase in enquiries in 2022.
The conundrum of the relatively weak African passport has paved the way to obtaining a second passport. It grants a person added travel flexibility and heightened security. In emergencies, a second passport can be invaluable for evacuation.
Additionally, it opens doors to global business prospects and provides access to top-tier healthcare, as well as opportunities for education in Europe and the Caribbean. Moreover, it allows for minimal taxation on capital gains, wealth, inheritance, gifts, and net worth.
Henley & Partners states that many African investors are driven by the need to secure stronger passports so they can travel with relative ease, but this also enables access to a greater proportion of the global economy in terms of the GDP they gain visa-free access to.
According to the October 2023 Henley Passport Power index, which rates passports based on the share of global GDP that each one allows its holders to travel without a visa, passport holders in South Africa, the wealthiest nation in Africa and home to the greatest number of millionaires, can travel to 107 (47%) of the 227 countries on the world passport list without a visa, but they only make up around 16% of the world’s GDP.
Although Egyptians make up 24% of the world’s population and the second-highest millionaire population in Africa, they can only enter 54 countries visa-free. Inspite of it, they only contribute 4% to the world’s GDP.
Nigeria, the nation with the third-highest concentration of millionaires on the continent, contributes roughly 0.5% of the world GDP. Only 44 out of 226 international destinations—which together account for roughly 1.5% of the world economy—allow Nigerian passport holders to enter the country without a visa or with visa on arrival.
African residents are often at a major disadvantage when it comes to ease of travel. The Henley Passport Index highlights that African nations are comparatively ranked lower than those in Europe and Asia.
Furthermore, Africa Wealth Report 2023 confirms that the Portugal Golden Residence Permit Program and the St. Kitts and Nevis Citizenship by Investment Program, that require an initial investment of USD 250,000, were the most popular programs among African families in 2022.
Moreover, the Antigua and Barbuda Citizenship by Investment Program, the Dominica Citizenship by Investment Program, and the St. Lucia Citizenship by Investment Program each requiring a minimum investment of USD 100,000 were also popular choices.
