The number of Ultra High Net-Worth Individuals on the African continent is expected to increase by 53% over the next 10 years, having more than doubled over the past decade.<\/p>\n
This is according to a new wealth report by consultancy firm, Knight Frank, highlighting and projecting the growth of the world’s wealthiest individuals between 2003 and 2023.<\/p>\n
Ultra High Net-Worth Individuals (UHNWIs) are people who have a net worth above US$30 million (R322.5 million), and the total number of these individuals has increased by almost 60% over the last decade.<\/p>\n
In 2003, Knight Frank recorded 105,641 individuals who qualified for the title – a figure which has increased to 167,669 in 2013. By 2023, this number is projected to grow by a further 28%, to 215,113 UHWNIs.<\/p>\n
As of 2013, Europe is home to the highest amount of UHNWIs, with 60,503 individuals, a figure which is expected to increase by 21% by 2023 to 73,396.<\/p>\n
North America, with 43,626 UHWNIs is home to the second biggest batch of wealthy people, with Asia’s 41,114 UHNWIs populating third place.<\/p>\n
Africa, while currently the bottom of the pile for high net worth individuals, is expected to see the most growth over the next decade for wealth creation, albeit off a low base.<\/p>\n
The continent is expected to see a growth of 53% in UHNWIs to 2,858 individuals by 2023 from 1,868 in 2013.<\/p>\n
Region<\/strong><\/td>\n| 2003<\/strong><\/td>\n | 2012<\/strong><\/td>\n | 2013<\/strong><\/td>\n | 2023<\/strong><\/td>\n | 2003-2013<\/strong><\/strong><\/td>\n | 2012-2013<\/strong><\/strong><\/td>\n | 2013-2023<\/strong><\/td>\n<\/tr>\n | World<\/td>\n | 105,641<\/td>\n | 162,968<\/td>\n | 167,669<\/td>\n | 215,113<\/td>\n | 59%<\/td>\n | 3%<\/td>\n | 28%<\/td>\n<\/tr>\n | Africa<\/td>\n | 813<\/td>\n | 1,844<\/td>\n | 1,868<\/td>\n | 2,858<\/td>\n | 130%<\/td>\n | 1%<\/td>\n | 53%<\/td>\n<\/tr>\n | South Africa<\/td>\n | 289<\/td>\n | 611<\/td>\n | 594<\/td>\n | 834<\/td>\n | 106%<\/td>\n | -3%<\/td>\n | 40%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n | A look at Africa<\/strong><\/p>\n Of the 90 countries ranked in the report, South Africa is listed at 36th in terms of the number of wealthy individuals – and 44th in terms of expected growth in said individuals over the next 10 years.<\/p>\n According to Knight Frank’s data, Johannesburg is Africa’s leading city in terms of HNWIs, with the current tally of 285 HWNI’s expected to grow by 41% to 403 by 2023.<\/p>\n That ranks Joburg as the 37th fastest growing millionaire city in the world.<\/p>\n Following in 42nd place, overall, Africa’s second largest growing HWNI city is Cape Town, which is expected to see its number of wealthy individuals grow 37% from 110 HWNIs to 151 over the next 10 years.<\/p>\n This is ahead of three other African cities, namely, Cairo (Egypt), Lagos (Nigeria) and Nairobi (Kenya).<\/p>\n Nairobi, however, is ranked higher in terms of growth (17th), with its 65 UHWNI’s expected to grow 78% to 116 in the next decade.<\/p>\n The IMF predicts that the economy of sub-Saharan Africa will grow by 5.7% per annum between now and 2018, up from 4.7% per annum in the preceding five years. Key among the continent\u2019s emerging hubs is the Kenyan capital, Nairobi, the firm noted.<\/p>\n According to Knight Frank, Africa is viewed as a destination that is attractive to foreign investors: mobile phones are ubiquitous, urban growth is swelling the ranks of the middle classes.<\/p>\n \u201cThis is the most important African business centre between the Mediterranean and Johannesburg,\u201d said Anthony Havelock, Knight Frank\u2019s Head of Agency in the city.<\/p>\n \u201cInternational companies recognise that there\u2019s too much going on in Africa to run their entire operations out of South Africa. Google, JPMorgan Chase, Colgate-Palmolive: they\u2019re all here.\u201d<\/p>\n Knight Frank noted an increase in demand – again, off a low base – for luxury goods from African countries like Nigeria, Ghana, South Africa and Angloa.<\/p>\n “Although Africa\u2019s luxury industry is still only embryonic, with most major brands restricting themselves to South Africa for now, the sector is keeping a close eye on the continent\u2019s increasing number of UHNWIs,” the report said.<\/p>\n Is South Africa a failed country?<\/a><\/strong><\/p>\n South Africa\u2019s richest people in 2014<\/a><\/strong><\/p>\n |