Africa (Commonwealth) _ Africa’s high-net-worth individual (HNWI) population is predicted to grow significantly over the next decade, with the number of millionaires expected to rise by 42%.
According to the 2023 Africa Wealth Report, released in collaboration with New World Wealth, Africa’s millionaire population is expected to reach 195,000 by 2032. Mauritius is expected to be the star performer, with a 75% growth rate over the next decade.
Namibia, Rwanda, Zambia, the Seychelles, the Democratic Republic of the Congo, and Morocco are also predicted to see significant HNWI growth, with growth rates exceeding 60% in all of these nations. When looking at the success of African markets over the last decade, Rwanda comes out on top, with a staggering 72% increase in millionaires from 2012 to 2022.
Mauritius, the Seychelles, Uganda, and the Democratic Republic of the Congo are close behind. However, the analysis reveals a troubling trend: the total number of HNWIs in Africa has decreased by 12% during the same time period. This reduction is attributed to low economic growth in the three main African markets, notably South Africa, Egypt, and Nigeria, according to the report.
Furthermore, Ethiopia and Ghana, which had seen significant increase in their millionaire populations until 2019, have faced obstacles in recent years, leading in lower 10-year growth rates.
The huge decline of around 18,500 millionaires from the continent during the last decade is one reason leading to the decline in HNWI levels across Africa. Furthermore, just 23 of the world’s 52 African-born billionaires remain in Africa. Many HNWIs have moved to the United Kingdom, the United States, and the United Arab Emirates.
Many people have opted to relocate to Australia, Canada, France, Israel, Monaco, New Zealand, ortugal, and Switzerland. The “Big 5” African wealth markets, which include South Africa, Egypt, Nigeria, Kenya, and Morocco, account for 56% of the continent’s HNWIs and more than 90% of its billionaires.
South Africa comes out as the obvious leader, with the most resident HNWIs among the top ten wealthiest countries. South Africa comes out as the obvious leader, with the biggest number of resident HNWIs among Africa’s top ten wealthiest countries.
The research also discusses the potential for expansion in eco-tourism, which has been popular among Africans, particularly HNWIs. The existence of big international hotel groups across the continent is cited by the writers as proof of deep-pocketed investors already involved in eco-tourism.
According to the report, there is room for both established international hospitality chains and new homegrown entrants to invest in this sector, indicating the potential for the continent’s tourism industry to rebound and generate significant job opportunities in related sectors such as food, services, and manufacturing.
Aside from the positive prognosis for eco-tourism, the research highlights Africa’s leadership in women’s entrepreneurship. According to the report, Africa has the greatest proportion of women starting businesses, outnumbering men on the continent.
Women in Africa make major contributions to wealth creation through consumer spending, labor involvement, and company ownership. Women entrepreneurs are also credited with generating economic growth and innovation. The report hopes that African women would lead the way in the development of eco-tourism and turn their existing modest agricultural companies into profitable enterprises.
More women will be able to enter the ranks of high-net-worth persons, centi-millionaires, and even billionaires as a result, leading to greater gender equality and prosperity on the continent.
Overall, the Africa Wealth Report paints a positive picture of the continent’s millionaire population’s future, emphasizing the potential for economic growth, particularly in eco-tourism, as well as the important role played by women entrepreneurs in driving wealth creation and innovation on the continent.
