New Africa Wealth Report 2024 Explores Wealth Growth on the Continent
This post was originally published on Henley & Partners here.
The total investable wealth currently held on the African continent amounts to USD 2.5 trillion and its millionaire population is set to rise by 65% over the next 10 years, according to the 2024 Africa Wealth Report, published by international wealth advisory firm Henley & Partners in collaboration with global wealth intelligence partner New World Wealth.
Now in its 9th edition, the annual report reveals that there are currently 135,200 high-net-worth individuals (HNWIs) with liquid investable wealth of USD 1 million or more living in Africa, along with 342 centi-millionaires worth USD 100 million or more, and 21 dollar billionaires. Africa’s ‘Big 5’ wealth markets — South Africa, Egypt, Nigeria, Kenya, and Morocco — together account for 56% of the continent’s millionaires and over 90% of its billionaires.
Some of the fastest-growing markets in the world
Despite a tough past decade which saw a 20% decline in its millionaire population, South Africa remains home to over twice as many HNWIs as any other African country, with 37,400 millionaires, 102 centi-millionaires, and 5 billionaires, followed by Egypt with 15,600 millionaires, 52 centi-millionaires, and 7 billionaires. Nigeria sits in 3rd place with 8,200 HNWIs, followed by Kenya (7,200 millionaires), Morocco (6,800), Mauritius (5,100), Algeria (2,800), Ethiopia (2,700), Ghana (2,700), and Namibia (2,300) all making it into the Top 10 Wealthiest Countries in Africa.
Going forward, over the next decade (to 2033), the likes of Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda, and Rwanda are all expected to experience 80%+ millionaire growth. Mauritius, with its stable governance and favorable tax regime, is projected to experience a remarkable 95% growth rate, positioning it as one of the world’s fastest-growing wealth markets. Namibia, too, is poised for impressive high-net-worth growth, which is forecast to exceed 85% by 2033. Both Mauritius and Namibia offer investment migration pathways to attract global investors.
Commenting in the 2024 Africa Wealth Report, renowned South African political commentator, newspaper columnist, and best-selling author Justice Malala says that with growth projected at 4% by the IMF, Sub-Saharan Africa will be the second-fastest-growing region in the world in 2024, after Asia. “The African Development Bank predicts that Africa will account for 11 out of the 20 fastest-growing economies in the world this year. And with a new global political order emerging, African voices are also being elevated in international decision-making bodies. With Russia, China, the USA, and the EU all jostling for favor on the continent, African leaders have become more emboldened and are demanding a seat at the top tables. These will come with closer relationships between continental leaders and other ‘middle powers’ such as India, Turkey, Argentina, and Saudi Arabia. Already, Ethiopia and Egypt have joined the BRICS grouping and the African Union has become a permanent member of the G20. Previously, only South Africa was in these exclusive clubs.”
Centers of affluence and future pockets of prosperity
At the city level, Johannesburg holds its place as the wealthiest in Africa, with 12,300 millionaires, 25 centi-millionaires, and 2 billionaires. Cape Town follows closely with 7,400 millionaires, 28 centi-millionaires, and 1 billionaire. Cairo (7,200 millionaires), Nairobi (4,400), and Lagos (4,200) also stand out as key urban wealth hubs.
When it comes to future millionaire-magnet cities and regions, Amoils says Cape Town, South Africa’s Whale Coast, Kigali, Windhoek, Swakopmund, Nairobi, Tangier, and Marrakech are all expected to enjoy 85%+ millionaire growth over the next 10 years. “Solid growth of over 80%+ is also projected in Lusaka and Mombasa. Cape Town is on track to overtake Johannesburg to become Africa’s wealthiest city by 2030. We expect several major Johannesburg-based companies to move their head offices to Cape Town over the next decade, which should help to drive wealth growth in the city.”
Investment migration: A catalyst for growth
Investment migration is emerging as a potential further mechanism to accelerate Africa’s economic growth, according to Volek. “By offering residence and citizenship by investment opportunities, African countries can attract vital foreign capital, stimulate job creation, and foster knowledge transfer. This not only benefits the host nations but also provides African HNWIs and their families with enhanced global mobility and risk diversification options. Despite the challenges, Africa’s potential for wealth creation remains immense. The continent’s youthful and rapidly growing population presents a significant demographic dividend. Strategic investments in education, infrastructure, and technology could unlock human capital and drive sustainable growth.”
