Johannesburg has the most millionaires in Africa, with 14 600, according to the latest 2023 Africa Wealth report published by Henley & Partners, in partnership with New World Wealth.
This as Africa’s millionaire population is expected to rise 42% over the next 10 years.
The report showed that Africa’s ‘Big 5’ wealth markets are South Africa, Egypt, Nigeria, Kenya and Morocco, which together account for 56% of the continent’s high-net-worth individuals (HNWIs) and over 90% of its billionaires.
There are some 138 000 HNWIs with investable wealth of $1 million (R18.2m) or more living in Africa, along with 328 centi-millionaires worth $100m or more, and 23 US dollar billionaires.
Despite a tough past decade economically, South Africa is still home to over twice as many HNWIs as any other African country, and 30% of the continent’s centi-millionaires.
Egypt takes the prize for the most billionaires, and Mauritius has the highest wealth per capita (average wealth per person) in Africa, at $37 500, followed by South Africa at $10 880 and Namibia at $10 050. The total investable wealth currently held on the African continent amounts to $2.4 trillion.
The 2023 Africa Wealth Report provides a review of the wealth sector in Africa, including trends among HNWIs, the luxury market, and wealth management.
New World Wealth head of research Andrew Amoils said Africa was home to some of the world’s fastest-growing markets, including the likes of Rwanda and Mauritius.
In terms of projections, he said Mauritius was expected to experience the highest wealth growth rate at 75% over the next decade, which would make it the fourth fastest-growing country in the world over this period in millionaire growth percentage terms, after Vietnam, India and New Zealand.
Louisa Mojela, the chairperson of the black women-owned investment company Wiphold, said Africa was open for business.
“Known as the continent with both the youngest and fastest-growing population means that Africa naturally holds the greatest potential for investment prospects. Additionally, having the dubious honour of also being the poorest continent opens up a myriad opportunities from an investment growth potential point of view. Without doubt, Africa provides the broadest and most fulfilling opportunities for impact investing,” she said in a statement.
The report showed that four of Africa’s Top 10 wealthiest cities are in South Africa — Johannesburg has the most millionaires in Africa, with 14 600. Cairo, in second place with 7 400 resident HNWIs, is just ahead of Cape Town, which has 7 200.
Lagos is in fourth position with 5 400 millionaires, and Nairobi is fifth with 4 700. The other two South African cities in the Top 10 are Durban, in sixth place with 3 600 and Pretoria in the eighth spot with 2 400 HNWIs.
The report showed there are some 3 700 homes in South Africa valued at more than $1m and by this measure South Africa ranks as one of the 20 largest prime residential markets in the world, well ahead of the other countries in Africa and in line with big emerging markets such as India and Brazil.
According to the report, Namibia is expected to be one of Africa’s fastest-growing markets going forward, with high-net-worth growth of over 60% forecast by 2032.
BUSINESS REPORT