Five African countries, including South Africa, Egypt, Nigeria, Kenya, and Morocco have been ranked the wealthiest countries in the continent, a new report has indicated.
Generally referred to as the ‘Big 5’ wealth markets in Africa, they account for 56% of Africa’s high-net-worth individuals and over 90% of the continent’s billionaires, the Africa Wealth Report 2023 by Henley & Partners had revealed.
Mauritius was ranked sixth on the list despite its small size and population.
Over the next ten years, Africa’s millionaire population is expected to rise by 42%, reaching around 195,000 by 2032, the report says.
Mauritius is predicted to be the standout, with 75% growth forecast for the next decade, the report said further.
Strong high-net-worth individual growth of more than 60% is also forecast in Namibia, Rwanda, Zambia, the Seychelles, the Democratic Republic of the Congo, and Morocco, the report said.
About $150 billion of Africa’s high-net-worth individual wealth is tied up with wealth managers and private banks, the report said, adding that the continent’s wealth management market is estimated to grow by 60% over the next decade.
South Africa also led the dollar ‘centi-millionaire’ count – individuals with investable assets greater than $100 million – with 98 compared with Egypt’s 54 and Nigeria’s 27. Kenya was ranked fourth with 15.
On the billionaire count, South Africa had 5, Egypt 8 and Nigeria 4 while Kenya had none.
“Centi-millionaires are typically the founders of large multi-national companies, making their presence in a country particularly valuable when it comes to creating employment,” the report said.
However, total high-net-worth individual numbers in Africa have fallen by 12% over the past decade (2012 to 2022), due to poor growth in South Africa, Egypt, and Nigeria, the report said.
Rwanda was the top performing market in Africa during the period, with millionaire growth of 72%. But Ethiopia and Ghana slipped down the pecking order after growing rapidly until 2019.
South African cities dominate the list of Africa’s Top 10 wealthiest cities by the number of resident millionaires. Johannesburg ranked first, followed by Cairo, Cape Town, Lagos and Nairobi among the top five.