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Africa’s private wealth to jump to $4 trillion by 2034

MAURITIUS, Namibia, Morocco, Zambia, Kenya, Uganda and Rwanda will lead gains with Africa expected to grow its new millionaire tally by 65%.

PRIVATE wealth in Africa will leap 65% over the next decade to US$4 trillion in new annual estimates, fuelled by growth in fintech, eco-tourism and business process outsourcing.

Additional sectors like software development, rare metals mining, green tech, wealth management, media, and entertainment will further bolster the continent’s wealth surge, according to the Henley & Partners Africa Wealth Report 2024.

The international wealth advisory firm said Africa now has US$2.5 trillion in investable wealth and its millionaire population is set to rise by 65% or 223,080.

Non-state wealth in 2022 stood at US$2.1 trillion and was expected to grow by 38% in 10 years, with the latest figures already reflecting a 19.4% leap, injecting an extra US$400 billion into total wealth over two years.

Such robust growth signals a steady shift in Africa’s economic landscape and suggests the potential for substantial new wealth generation across the continent if conditions remain favourable.

New forecast anticipates Mauritius will register a 95% growth rate, making it one of the fastest-expanding wealth markets worldwide.

Namibia, Morocco and Zambia are also forecast to increase non-state wealth at the fastest rates on the continent during the period, with millionaire growth topping 80%.

Significant gains are also expected in Kenya, Uganda and Rwanda.

Dominic Volek, Head of Private Clients at H&P asserts the continent’s youthful and rapidly growing population presents a significant demographic dividend.

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“Strategic investments in education, infrastructure, and technology could unlock human capital and drive sustainable growth,” he analysed.

Africa now has 135,200 high net-worth individuals with investable wealth of US$1 million or more, 342 centi-millionaires (over US$100 million) and 21 (US$) billionaires.

The “Big 5” wealth markets are South Africa, Egypt, Nigeria, Kenya, and Morocco, accounting for 56% of the continent’s millionaires and over 90% of its billionaires.

South Africa leads African wealth, boasting 37,400 millionaires, 102 centi-millionaires, and 5 billionaires, despite the challenges of the past decade.

It holds over twice as many HNWIs as Egypt, which follows with 15,600 millionaires, 52 centi-millionaires, and 7 billionaires.

Nigeria ranks third with 8,200 HNWIs, followed by Kenya with 7,200 millionaires, Morocco with 6,800, Mauritius with 5,100, Algeria with 2,800, Ghana with 2,700, Ethiopia with 2,700, and Namibia rounding out the top 10 with 2,300 HNWIs.

Over the past decade, the South African rand fell 43% against the US dollar, a trend seen across other major currencies on the continent. Nonetheless, resilience and growth potential remain high, according to Henley&Partners.

Currencies in most African states have fared poorly against the greenback, with dramatic depreciations of over 75% in Nigeria, Egypt, Angola, and Zambia.

Meanwhile, at the city level, Johannesburg leads in wealth, boasting 12,300 millionaires, 25 centi-millionaires, and 2 billionaires.

Cape Town closely follows with 7,400 millionaires, 28 centi-millionaires, and 1 billionaire. Cairo, Nairobi, and Lagos also emerge as prominent urban wealth centres, with 7,200, 4,400, and 4,200 millionaires respectively.

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