The following figure highlights the inclination of different wealth bands in Africa to invest in the various asset classes.<\/p>\n
Behavioral mapping of HNWIs in Africa 2016:<\/strong><\/p>\n The preference rankings are based on the propensity of a particular wealth band to invest in each asset class when compared with members of the other wealth bands.<\/p>\n As reflected, lower-tier millionaires in Africa have a high propensity to hold cash and residential real estate, while billionaires tend to invest in collectables, commodities and other alternatives assets such as private equity.<\/p>\n Affluent millionaires in Africa are most likely to invest in fixed income products and equities, NWW said.<\/p>\n Collectibles<\/strong><\/p>\n Collectables, especially art, wine and classic automobiles are an increasingly popular way for African HNWIs to store their wealth. Collectables accounted for 1.1% or US$8.8 billion of the assets of African HNWIs in 2016, compared to only 0.6% in 2006.<\/p>\n Art in Africa<\/strong><\/p>\n New World Wealth estimates that African HNWIs held US$870 million worth of fine art at the end of 2016.<\/p>\n Globally, fine art prices have risen by 3% over the past 10 years, whilst African fine art prices have risen by 22%.<\/p>\n Super luxury watches<\/strong><\/p>\n Super-luxury watches is a particularly fast growing collectable segment in Africa, according to NWW. According to its estimates, $46 million was generated in African sales of these watches in 2016, up from $13 million in 2006.<\/p>\n South Africa<\/strong><\/p>\n When it comes to making money, South Africa’s richest people earn their wealth through real estate and construction – accounting for 20% of all wealth sources in the country.<\/p>\n Other important industries include financial services, basic materials and diversified interests – though the report notes that telecoms, insurance and healthcare have shown strong growth as primary sources of wealth.<\/p>\n These are the industries which have made the most multi-millionaires in South Africa:<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/04\/NWWInvestments.png\")
<\/a><\/p>\n