A new report on Africa’s wealth reveals that only five countries own 50% of the continent’s total wealth

A new report on Africa’s wealth reveals that only five countries own 50% of the continent’s total wealth

Research firm New World Wealth, in collaboration with Henley & Partners, has published a new report on wealth in Africa during 2022. According to the document, there are five countries in which 50% of the wealth of the entire continent is accumulated. here they are South Africa, Egypt, Nigeria, Morocco and Kenya.

The content of the report indicates some additional data about the reasons for the accumulation of wealth in these countries. First, it was emphasized that South Africans had the greatest combined wealth. They own more than 651,000 million dollars. The list is followed by the Egyptians with 307 thousand million dollars and the Nigerians by 228 thousand million dollars.

Next to, South Africa has the two richest cities in the entire continentFirst Johannesburg is the richest and has a total private fortune of $239 billion. The second is Cape Town, whose heritage is 131 thousand million dollars. They are followed by El Carrillo and Lagos, with a value of 128 thousand and 97 thousand million dollars, respectively.

Photograph: Reuters Fashion design and clothing manufacturing company in Johannesburg, South Africa

Secondly, It should be noted that Egypt has more billionaires than any other country on the continent. Finally, the report asserts that there are currently more than 136,000 high net worth individuals in Africa. For these people to be considered as such, they must have a private fortune of $1 million or more. Besides these, there are 305 millionaires (they have over $100 million) and 21 billionaires living on the continent.

Tangier Med port in Ksar El Saghi.  Photo / REUTERS
Photo/Reuters Tangier Med port at Ksar Saghi

On the other hand, although it does not appear in the list of the five richest countries, Mauritius has the highest level of wealth per capita in Africa. This country has $34,500. It is followed by South Africa with $10,970 and Namibia with $9,230 per capita.

Experts point out that the Republic of Mauritius is one of the countries that will witness the most growth in terms of wealth over the next decade. Its level is expected to rise another 80% from current levels. With such good prospects, the islands will become one of the fastest growing high-income markets. Thus, it joins a classification that dominates Australia, Malta, New Zealand and Switzerland..

Egypt has more billionaires than any other country on the continent AP / NARIMAN EL-MOFTY
AB / Nariman Al-Mufti Egypt has more billionaires than any other country on the continent

But, The report finds that Africa’s total private wealth is on the rise. Total wealth refers to the private wealth of all individuals who live in a country, including their assets (property, cash, stocks, and business interests) minus any liabilities. “We exclude public funds from our numbers,” the document states.

at the moment, The continent has $2.1 trillion, which is expected to increase by 38% over the next 10 years. Its increase is expected to be the result of the adoption and performance of leading economies. The motive behind this will start with the need to diversify the sources of wealth creation and thus enter into other markets to generate more wealth.

East African Breweries Plc in Ruaraka, Nairobi AFP / SIMON MAINA
AFP/Simon Main – East African Breweries Plc in Ruaraka, Nairobi

Africa focuses on some of the world’s fastest growing markets, such as Rwanda, Uganda and Mauritius. “We expect private wealth to grow by more than 60% in all three countries over the next decade, driven by particularly strong performance in the technology and professional services sectors,” said Andrew Amwells, director of research at New World Wealth.

Ini buses known as 'Korope' are waiting for passengers in Lagos.  AFP / PIUS UTOMI EKPEI
AFP / PIUS UTOMI EKPEI – Ini buses popularly called “Korope” queue and wait for passengers in Lagos

Similarly, Dominic Volek, Director of Special Clients at Henley & Partners points out that there are very tight-knit centers of wealth on the continent, such as those in South Africa, Morocco and Egypt. These have growth forecasts that will represent the future economy of Africa.

Significant private wealth growth of over 50% is expected in Kenya, Morocco, Mozambique and Zambia in the coming years. The mobility of people with high net worth in Africa is enormous, and their movements give us valuable information about the future economic trends of each country,” comments the director.

It is noteworthy that, despite recent global events and the situation on the continent, South Africa ranks 28th in terms of total private wealth globally. It is ahead of other economies such as Argentina, Malaysia, Thailand and Turkey, for example.

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