Africa’s Millionaire Surge

Number of African millionaires to rise 42% over the next decade, says report

Africa is set to experience a significant increase in its high-net-worth individual (HNWI) population, with the number of millionaires expected to rise by 42% over the next 10 years.

According to the 2023 Africa Wealth Report published by Henley & Partners in partnership with New World Wealth, Africa’s millionaire population is projected to reach approximately 195,000 by 2032.

The standout performer is predicted to be Mauritius, with a forecasted growth rate of 75% over the next decade.

Other countries expected to witness substantial HNWI growth include Namibia, Rwanda, Zambia, the Seychelles, the Democratic Republic of the Congo, and Morocco, all of which are projected to experience growth rates exceeding 60%.

When examining the performance of African markets over the past decade, Rwanda emerges as the top performer, with a remarkable 72% growth in millionaires from 2012 to 2022.

Following closely behind are Mauritius, the Seychelles, Uganda, and the Democratic Republic of the Congo. However, the report highlights a concerning trend: the total number of HNWIs in Africa has fallen by 12% during the same period.

The report attributes this decline to poor economic growth in the three largest African markets, namely South Africa, Egypt, and Nigeria.

Additionally, Ethiopia and Ghana, which had been experiencing rapid growth in their millionaire populations until 2019, have faced challenges in recent years, resulting in diminished 10-year growth rates.

One factor contributing to the decrease in HNWI numbers across Africa is the significant outflow of approximately 18,500 millionaires from the continent in the past decade. Moreover, only 23 of the world’s 52 African-born billionaires still reside in Africa.

Many HNWIs have relocated to countries such as the United Kingdom, the United States, and the United Arab Emirates.

Significant numbers have also chosen to move to Australia, Canada, France, Israel, Monaco, New Zealand, Portugal, and Switzerland.

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

South Africa stands out as the clear leader, boasting the highest number of resident HNWIs among the top 10 wealthiest countries in Africa.

The report also sheds light on the potential for growth in eco-tourism, which has gained popularity among Africans, particularly HNWIs.

The authors highlight the presence of major international hotel groups across the continent as evidence of deep-pocketed investors already engaged in eco-tourism.

The report emphasizes that 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 employment opportunities in related sectors such as food, services, and manufacturing.

In addition to the promising outlook for eco-tourism, the report underlines Africa’s leading position in women’s entrepreneurship.

It states that Africa has the highest rate of women starting businesses, surpassing men in entrepreneurial activity on the continent.

Women in Africa contribute significantly to wealth creation through consumer spending, workforce participation, and business ownership.

Africa’s Millionaire Surge

Women entrepreneurs are also credited with driving innovation and economic growth.

The report expresses the hope that African women will lead the way in the development of eco-tourism and transform their existing small agricultural businesses into thriving enterprises.

By doing so, more women can ascend to the ranks of high-net-worth individuals, centi-millionaires, and even billionaires, contributing to greater gender equality and prosperity on the continent.

Overall, the Africa Wealth Report paints an optimistic picture for the future of Africa’s millionaire population, emphasizing the potential for economic growth, particularly in eco-tourism, as well as the significant role played by women entrepreneurs in driving wealth creation and innovation on the continent.