The data from the most recent Africa Wealth Report shows a snapshot of wealth in Africa, with Mauritius being the richest.
More than 50 nations make up the African continent, but just five of them—South Africa, Egypt, Nigeria, Morocco, and Kenya—account for more than half of the continent’s total GDP.
Wealth creation has remained strong in a variety of areas despite recent losses in Africa’s largest economies, and total private wealth is now projected to reach US$2.1 trillion. 21 billionaires are thought to be living in Africa today.
Here is a look at where all that wealth is concentrated across the continent, using data from the most recent Africa Wealth Report (pdf below).
A Country-Level Look at Wealth in Africa
With a thriving market for luxury real estate and a wide range of wealth management services, South Africa continues to be a major centre of wealth in Africa. In terms of wealth per capita, the country comes in second on the continent. Nevertheless, the nation has recently experienced difficulties.
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Over the previous ten years, an estimated 4,500 high net worth individuals (those with US$1 million or more in wealth) have migrated from South Africa to countries including the UK, Australia, and the US. The report makes the startling observation that only five of the 15 millionaires who were born in South Africa still reside there.
Here are comparisons of the wealth per capita of the major African nations.
According to per capita income, Mauritius is the richest country in Africa. Here are a few factors that favour the island country:
- HNWI growth – Wealthy individuals have flocked to Mauritius in recent years
- Ease of doing business – Mauritius ranked 13th worldwide in World Bank’s Doing Business Report
- Low taxes – There is no inheritance tax or capital gains tax in the country
- Safety – Mauritius was recently rated by New World Wealth as the safest country in Africa
- Financial sector – A growing local financial services sector and stock market (SEMDEX)
As a result, over the past ten years, Mauritius has experienced the largest growth in total private wealth, followed by Rwanda and Ethiopia.
On the other hand, Nigeria, the largest economy in Africa, had a sharp decline in overall wealth. High levels of unemployment, corruption, and an overreliance on crude oil have caused the nation’s current problems.
The Big Picture
Africa’s economies are gradually becoming less reliant on the extractive sector, and economic conditions are generally improving. These positive factors, along with the favourable demographics of the continent, indicate a prosperous economic future for Africa.
Additionally, the outlook for personal wealth on the continent is mostly optimistic. By 2031, there will be $3 trillion in private wealth held in Africa, an increase of almost 40%.
Read the report given below: