Wealth among Africa’s HNWIs will reach $3 trillion by 2031, new report reveals

As more attention is drawn to Africa as entrepreneurs and businessmen continue to leverage the continent’s vast resources to create wealth in an economic era driven by the Internet and technology, a wealth report has revealed that private wealth held in Africa is expected to increase by 38 percent over the next decade to $3 trillion.

According to the latest 2022 Africa Wealth Report released this week by Henley & Partners in collaboration with New World Wealth, a global wealth intelligence firm based in South Africa, total private wealth on the African continent is $2.1 trillion and is expected to rise by 38 percent over the next 10 years.

According to the report, growth in the technology and professional services sectors will drive a 38-percent increase in private wealth over the next ten years. The creation of wealth and the flow of capital across the continent will be linked to the performance of frontier economies, which will be driven by the need to diversify wealth-creating sources.

The report raises concerns about whether the projected growth will be more evenly distributed and reduce wealth inequality across the continent.

“Our growth forecast for Africa is very healthy when compared to most other regions globally,” said Andrew Amoils, head of research at Johannesburg-based New World. “We expect especially strong growth in the centi-millionaire wealth band,” or individuals with more than $100 million, in Uganda, Mozambique, and Zambia, he added.

According to Vusi Thembekwayo, a leading entrepreneur, international author, and CEO of MyGrowthFund Venture Partners, the rise of new wealth economies, as well as megacities and the diversification of wealth-creating sources, are just some of the exciting trends driving the creation and flow of capital across the continent.

“The rise of frontier economies that are attracting new wealth by positioning themselves as preferred investment destinations is challenging this narrative. Mauritius and Seychelles have recently been the most deliberate with this strategy,” he added.

According to the report, Mauritius, Rwanda and Uganda are expected to increase non-state wealth at the fastest rates on the continent — by at least 60 percent — during the period, while large gains are also expected in Kenya, Morocco, Mozambique and Zambia.

Tourism, real estate and financial services are expected to drive growth in Uganda, while tourism, business process outsourcing and manufacturing are expected to drive growth in Mozambique, and mining and financial services are expected to drive growth in Zambia.

With this paradigm shift in mind, much of the continent’s wealth distribution remains unchanged, with Africa’s “Big 5” private wealth markets — South Africa, Egypt, Nigeria, Morocco, and Kenya — accounting for more than half of the continent’s total wealth.

According to the report, Africa currently has 136,000 HNWIs with a private wealth of $1 million or more, 305 centi-millionaires worth $100 million or more, and 21 dollar billionaires.

Despite a difficult decade, South Africa still has more HNWIs than any other African country, with Egypt now having the most billionaires.

Mauritius has the highest per capita (average wealth per person) wealth in Africa at $34,500, followed by South Africa at $10,970 and Namibia at $9,320.