Africa Holds Investable Wealth Worth $2.5 Trillion

Africa was once described as “Dark Continent” and most of the region, which is rich in natural resources, remained untapped for many years. However, things have started changing for good and the number of millionaires and billionaires are swelling every year.

According to a new study entitled “2024 Africa Wealth Report,” published by international wealth advisory firm Henley & Partners in collaboration with global wealth intelligence partner New World Wealth (NWW) in London on Tuesday, the total investable wealth currently held on the African continent amounted to $2.5 trillion and its millionaire population is set to rise by 65% over the next 10 years.

The ninth edition of the annual report revealed that there were currently 135,200 high-net-worth individuals (HNWIs) with liquid investable wealth of $1 million or more living in Africa, along with 342 centi-millionaires worth $100 million or more, and 21 dollar billionaires.

“Africa’s ‘Big 5’ wealth markets — South Africa, Egypt, Nigeria, Kenya, and Morocco — together account for 56% of the continent’s millionaires and over 90% of its billionaires. However, the wealth growth on the continent has not been without its setbacks,” the report noted.

Dominic Volek, Group Head of Private Clients at Henley & Partners, said that currency depreciation and underperforming stock markets have chipped away at Africa’s wealth compared to global benchmarks.

The South African rand fell 43% against the US dollar from 2013–2023, and even though the JSE All Share Index, which makes up well over half of Africa’s listed company holdings, rose in local currency terms, it was down 5% in US dollar terms over that period.

“Currencies in most other African countries also performed poorly compared to the dollar over the past 10 years, with dramatic depreciations of over 75% recorded in Nigeria, Egypt, Angola, and Zambia,” Volek said.

Andrew Amolis, Head of Research at NWW, said that the African nations were also losing large numbers of HNWIs to migration which is eroding the continent’s wealth.

According to NWW’s latest figures, approximately 18,700 HNWIs have left Africa over the past decade (2013 to 2023). There were currently 54 African born billionaires in the world, including one of the world’s richest, Elon Musk, but only 21 of them still live on the continent.

“Most of these individuals have relocated to the UK, the USA, Australia, and the UAE. Significant numbers have also moved to France, Switzerland, Monaco, Portugal, Canada, New Zealand, and Israel,” he said.

South Africa Tops

Despite a tough past decade which saw a 20% decline in its millionaire population, South Africa remains home to over twice as many HNWIs as any other African country, with 37,400 millionaires, 102 centi-millionaires, and 5 billionaires, followed by Egypt with 15,600 millionaires, 52 centi-millionaires, and 7 billionaires. Nigeria sits in 3rd place with 8,200 HNWIs, followed by Kenya (7,200 millionaires), Morocco (6,800), Mauritius (5,100), Algeria (2,800), Ethiopia (2,700), Ghana (2,700), and Namibia (2,300) all making it into the Top 10 Wealthiest Countries in Africa.

Going forward, over the next decade (to 2033), the likes of Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda, and Rwanda are all expected to experience 80%+ millionaire growth.

Centres of Affluence             

At the city level, Johannesburg holds its place as the wealthiest in Africa, with 12,300 millionaires, 25 centi-millionaires, and 2 billionaires. Cape Town follows closely with 7,400 millionaires, 28 centi-millionaires, and 1 billionaire. Cairo (7,200 millionaires), Nairobi (4,400), and Lagos (4,200) also stand out as key urban wealth hubs.

When it comes to future millionaire-magnet cities and regions, Amoils said that Cape Town, South Africa’s Whale Coast, Kigali, Windhoek, Swakopmund, Nairobi, Tangier, and Marrakech are all expected to enjoy 85%+ millionaire growth over the next 10 years.

Most Expensive Cities

When it comes to luxury real estate, Cape Town continues to lead the way, with prime residential spaces valued at $5,600 per sq m. Grand Baie in Mauritius is close behind at $5,000 per sq m for a prime 200 sq m to 400 sq m.

South Africa has five contenders in Africa’s Top 10 Most Expensive Cities including Plettenberg Bay ($2,400 per sq m), Hermanus ($2,300 per sq m), Umhlanga ($2,000 per sq m), and Sandton ($1,800 per sq m). Morocco’s Marrakech ($2,200 per sq m), Tangier ($1,600 per sq m), and Casablanca ($1,400 per sq m) all make it into the exclusive club along with Egypt’s capital Cairo ($1,500 per sq m), which is also one of Africa’s largest cities.