New World Wealth has released its Africa Wealth report, providing a comprehensive review of the continent’s wealth sector.
The reports shows that total wealth held in Africa currently amounts to around $2.2 trillion. This figure is expected to rise by 35% over the next 10 years, reaching $3.0 trillion by 2028.
The report defines ‘total wealth’ as the private wealth held by all the individuals living in each country.
It includes all their assets (property, cash, equities, business interests) less any liabilities. We exclude government funds from our figures.
“We expect Mauritius, Ghana, Rwanda, Kenya, Ethiopia and Uganda to be the strongest performing wealth markets in Africa during this period,” New World Wealth said.
“There are approximately 140,000 HNWIs living in Africa, each with net assets of US$1 million or more. The average individual living in Africa has net assets of approximately US$1,900.”
“Notably, South Africa has over twice as many millionaires (HNWIs) as any other African country.”
According to New World Wealth there are a number of factors that attract and keep HNWIs in South Africa, including:
- Lifestyle aspects such as the climate, wildlife, beaches, weather and scenery;
- Good private schools;
- the fact that it is an English speaking country. Most HNWIs worldwide know English as the first or second language;
- Well established luxury areas (Camps Bay, Sandton, Umhlanga etc.);
- A relatively good private healthcare system (when compared to other emerging markets);
- Top class shopping centres (examples: Sandton City, Gateway, Montecasino and V&A Waterfront);
- Luxury food stores such as Woolworths, which appeal to wealthy consumers;
- Top restaurants and hotels.