CONRAD ONYANGO, BIRD STORY AGENCY
A global economic rebound and a boom in Africa’s start-up ecosystem last year supercharged wealth creation on the continent, pushing up the number of dollar millionaires, according to a new survey.
The 2022 Knight Frank Wealth Report shows 10,257 more individuals joined the league of the world’s High Net worth Individuals (HNWIs) with a net worth of more than 1 million US dollars – representing an 8.2 percent jump from 2020. The number now stands at more than 135,000,
“Last year’s global economic rebound supercharged wealth creation,” said Liam Bailey, Knight Frank’s Global Head of Research.
Africa’s giant tech start-up ecosystems made the biggest gains with South Africa leading the pack, adding 3,809 individuals to the million-dollar league, to reach 31,853 in 2021.
Egypt came second, adding 1,303 individuals to settle at 15,740, as Nigeria’s HNWI population reached 28,996 from 27,928 in 2020, to finish in the third position.
Of all the top tech start-up ecosystems, Kenya recorded only marginal growth in wealth creation, with just 39 individuals joining the dollar millionaire ranks – reflective of low activity in its start-up ecosystem in 2021.
Last year, the continent’s startup scene was characterized by multimillion-dollar venture capital injections, high-profile acquisitions, and billion-dollar (“unicorn”) valuations.
All these saw the continent’s startups raise 4.27 billion US dollars by the end of December 2021, according to Substack’s ‘Africa: The Big Deal’ that tracked more than 800 deals worth 100,000 US dollars or more.
The record-breaking startup fundraising was 2.5 times higher than that of 2020, with Fintech accounting for over 2 billion US dollars of these deals.
Other African countries that added dollar millionaires are Uganda (by 133 to 1,704), Tanzania (by 45 to 2,599) and Zambia (by 19 individuals, to 285).
The world also created a total of 52,000 ultra-wealthy people in 2021- those who possess a net wealth of 30 million US dollars or more, including primary residences and second homes not held as investments.
“Notwithstanding uncertain times, we have still seen substantial wealth creation globally with the number of people with a net wealth of 30 million dollars or more increasing by almost 10 percent last year,” said Rory Penn, head of Knight Frank Private Office.
Africa saw a marginal drop in this category – by 0.8 percent – after 17 ultra-rich Africans dropped from the exclusive 30 million dollar club.
However, the study ranks the continent third among countries with the highest relative number of super-wealthy, young, self-made dollar millionaires, categorized in the study as ‘Next Gen Wealth.’
Africa has 552 self-made ultra-rich individuals aged below 40, representing 25 percent of UHNWIs.
“This generation is more global, more tech-savvy and places greater emphasis on wellbeing– their own, that of their families and that of the environment,’ according to the study.
According to the Population Reference Bureau, young Africans will make up 42 percent of the world’s youth by 2030.
This young tech-savvy population is seen playing a critical role in helping Africa churn out more wealthy individuals, with Knight Frank’s survey showing the dollar millionaire population in Africa will grow by 22.5 percent to 165,485 by 2026.
