RE­GION’S GO TO PLACES FOR NEW MIL­LION­AIRES

7,100 multi mil­lion­aires are liv­ing in Africa, each with net as­sets of $10 mil­lion or more

The East African - - NEWS -

Rwanda and Uganda are East Africa’s lead­ing spots for wealth growth, and are pro­jected to have some of the strong­est per­form­ing wealth mar­kets in Africa in the next 10 years. This is ac­cord­ing to the Afra­sia Bank Wealth Re­port, 2018.

By AL­LAN OLINGO

Rwanda and Uganda are East Africa’s lead­ing spots for wealth growth, and are pro­jected to have some of the strong­est per­form­ing wealth mar­kets in Africa in the next 10 years.

This is ac­cord­ing to the Afra­sia Bank Wealth Re­port, 2018, which also shows that the wealth held in Africa has risen by 13 per cent in the past decade, and by 3 per cent over the past year, with Mau­ri­tius top­ping the per­form­ing in­di­vid­ual mar­kets.

In terms of wealth growth in the past decade in East Africa, Rwanda led the re­gion with 74 per cent rate, fol­lowed by Kenya at 73 per cent, then Tan­za­nia at 66 per cent and Uganda at 56 per cent.

As at the end of 2017, Kenya topped the re­gion with the high­est wealth held by in­di­vid­u­als at $104 bil­lion, fol­lowed by Tan­za­nia and Ethiopia at $60 bil­lion each. Within the con­ti­nent, South Africa tops in hav­ing the wealthiest in­di­vid­u­als — hold­ing $722 bil­lion — fol­lowed by Egypt at $330 bil­lion and Nige­ria at $253 bil­lion.

The new re­port also shows that the av­er­age African in­di­vid­ual has net as­sets of $2,000, with more than 148,000 high net worth in­di­vid­u­als (HNWIS) liv­ing in Africa, each with net as­sets of $1 mil­lion or more.

There are 7,100 multi-mil­lion­aires liv­ing in Africa, each with net as­sets of $10 mil­lion or more; over 320 centi-mil­lion­aires, each with net as­sets of $100 mil­lion or more; and 24 bil­lion­aires, each with net as­sets of $1 bil­lion or more.

The re­port says that to­tal pri­vate wealth held in Africa is also ex­pected to rise by 34 per cent over the next 10 years, reach­ing $3.1 tril­lion by the end of 2027.

“We ex­pect Mau­ri­tius, Ghana, Rwanda and Uganda to be the strong­est per­form­ing wealth mar­kets in Africa dur­ing this pe­riod (with 90 per cent to 150 per cent growth rates). Our pro­jec­tions for Ethiopia, Mozambique, Zam­bia, Kenya, Botswana and Namibia are also rel­a­tively solid (50 The new re­port also shows that the av­er­age African in­di­vid­ual has net as­sets of $2,000, with more than 148,000 high net worth in­di­vid­u­als (HNWIS) liv­ing in Africa, each with net as­sets of $1 mil­lion or more. There are 7,100 mul­ti­mil­lion­aires liv­ing in Africa, each with net as­sets of $10 mil­lion or more; over 320 centi-mil­lion­aires, each with net as­sets of $100 mil­lion

mil­lion­aires (HNWIS); with net as­sets of US$1 mil­lion or more

per cent to 80 per cent growth rates),” the re­port said.

Tan­za­nia, South Africa, An­gola, Morocco, Egypt, Ivory Coast, and Nige­ria, how­ever, have less favourable fore­casts, al­beit pos­i­tive, at be­tween 10 and 30 per cent, mostly due to pol­icy and eco­nomic fac­tors that are see­ing high net worth in­di­vid­u­als hold back in­vest­ments within th­ese coun­tries.

The African lux­ury sec­tor gen­er­ated about $6 bil­lion in rev­enue in 2017, mainly through the pur­chase of lux­ury cars, cloth­ing and ac­ces­sories, watches, pri­vate jets, yachts and lux­ury ho­tels and lodges. A large por­tion of lux­ury sec­tor rev­enue in Africa comes from lux­ury ho­tels and lodges, with South Africa be­ing the main tourist des­ti­na­tion.

In terms of wealthiest city, in East Africa, Nairobi beat its re­gional peers, hold­ing more than $54 bil­lion of pri­vate

multi-mil­lion­aires with net as­sets of US$10 mil­lion or more centi-mil­lion­aires with net as­sets of US$100 mil­lion or more

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