By Osoro Nyawangah, MWANZA
Tanzania
With its growth driven by agriculture and services on the supply side and final consumption and investment on the demand side, Tanzania is among ten countries in Africa with the most millionaires in Africa standing at number ten in a recent report.
Mohammed "Mo"
Gulamabbas Dewji is a Tanzanian billionaire businessman and former politician.
He is the owner of MeTL Group, a Tanzanian conglomerate founded by his father
in the 1970s. (Courtesy) |
The Africa
Wealth Report made available to The Africa, indicates that Tanzania takes tenth position below Africa's
'Big 5' wealth markets, namely South Africa, Egypt, Nigeria, Kenya, and
Morocco, that together make up 56% of the continent's US$ high-net-worth
individuals (HNWIs) and over 90% of its billionaires.
With its millionaire growth of
20%, Tanzania is a home of 2,400 millionaires, six billionaires and one Centi-millionaires.
"Generally, the African
continent currently holds investable wealth worth USD 2.4 trillion, and
according to the recently published 2023 report by Henley & Partners in
collaboration with New World Wealth, the population of millionaires is expected
to increase by 42% over the next 10 years." Says the report.
As of now, the continent is
home to 138,000 HNWIs with a wealth of USD 1 million or more, along with 328
centi-millionaires valued at USD 100 million or more and 23 US dollar
billionaires.
Despite a challenging past
decade, South Africa still has twice as many HNWIs as any other African country
and accounts for an impressive 30% of the continent's centi-millionaires.
Egypt has the highest number
of billionaires in Africa, while Mauritius has by far the highest wealth per
capita (average wealth per person) at USD 37,500, followed by South Africa at
USD 10,880 and Namibia at USD 10,050.
The report indicates that Africa's wealth market is growing steadily, offering opportunities for investors, entrepreneurs, and businesses looking to expand their operations in the region.
Johannesburg City, South Africa |
Africa’s millionaire
population is expected to rise by 42% over the next 10 years, reaching around
195,000 by 2032. Mauritius is predicted to be the standout, with 75% growth
forecast for the next decade.
Strong high-net-worth
individual growth of 60%+ is also forecast in Namibia, Rwanda, Zambia, the
Seychelles, the Democratic Republic of the Congo, and Morocco.
Approximately 18,500
high-net-worth individuals have left Africa over the past decade (2012 to
2022). Most have relocated to the UK, the USA, and the UAE. Significant numbers
have also moved to Australia, Canada, France, Israel, Monaco, New Zealand,
Portugal, and Switzerland.
In terms of internal
millionaire migration within the continent, approximately 1,200 high-net-worth
individuals have moved between African countries over the 10-year period, with
most relocating to Mauritius and South Africa.
A large number of billionaires
have left Africa over the past 20 years or so. Notably, there are 52 African
born billionaires globally, of whom only 23 still live on African soil.
This is a significant concern
as many billionaires are entrepreneurs and company founders who therefore have
the ability to create significant employment in their host countries.
Billionaires rarely move for tax reasons. They usually relocate to expand their
businesses or due to safety concerns.
List of African countries with
the most millionaires:
Country
|
Millionaires
(USD1m+) |
Billionaires
(USD1bn+) |
Centi-millionaires (USD100m+) |
Millionaire
growth (2012 to 2022) |
South
Africa |
37,800 |
98 |
5 |
-21% |
Egypt |
16,100 |
54 |
8 |
-25% |
Nigeria |
9,800 |
27 |
4 |
-30% |
Kenya |
7,700 |
15 |
- |
30% |
Morocco |
5,800 |
28 |
4 |
28% |
Mauritius |
4,900 |
10 |
- |
69% |
Algeria |
2,800 |
8 |
1 |
-26% |
Ethiopia |
2,700 |
4 |
- |
23% |
Ghana |
2,600 |
5 |
- |
24% |
Tanzania |
2,400 |
6 |
1 |
20% |
Total |
138,000 |
328 |
23 |
-12% |
Africa’s millionaire population is expected to rise by 42% over the next 10 years, reaching around 195,000 by 2032. Mauritius is predicted to be the standout, with 75% growth forecast for the next decade.
Strong high-net-worth
individual growth of 60%+ is also forecast in Namibia, Rwanda, Zambia, the
Seychelles, the Democratic Republic of the Congo, and Morocco.
Approximately 18,500
high-net-worth individuals have left Africa over the past decade (2012 to
2022). Most have relocated to the UK, the USA, and the UAE. Significant numbers
have also moved to Australia, Canada, France, Israel, Monaco, New Zealand,
Portugal, and Switzerland.
In terms of internal
millionaire migration within the continent, approximately 1,200 high-net-worth
individuals have moved between African countries over the 10-year period, with
most relocating to Mauritius and South Africa.
A large number of billionaires have left Africa over the past 20 years or so. Notably, there are 52 African born billionaires globally, of whom only 23 still live on African soil.
Sisa Ngebulana, South African
built his property empire brick by brick through perseverance |
This is a significant concern as many billionaires are entrepreneurs and company founders who therefore have the ability to create significant employment in their host countries. Billionaires rarely move for tax reasons. They usually relocate to expand their businesses or due to safety concerns.
Approximately USD 150 billion
of Africa’s high-net-worth individual wealth is tied up with wealth managers
and private banks. Typically, wealth managers in Africa target individuals with
over USD 500,000 in investable assets.
Services that are in highest
demand include asset management, financial planning, and inheritance planning.
South Africa (mainly
Johannesburg) is the leading wealth management hub in Africa, with assets under
management (AuM) of just over USD 85 billion (as at December 2022).
The African wealth management
market is estimated to grow by an impressive 60% over the next decade, driven
by strong AuM growth in most major markets.
As they are throughout the
world, family offices are a fast-growing wealth management segment in Africa,
and in South Africa in particular. They traditionally provide a more customized
offering than wealth managers and private banks with services that include
family education management, household staff management, intergenerational
transfer and legal and tax services, philanthropy coordination, and property
management in addition to the usual investment services.
Typically, family offices are exclusively for family members and family-related foundations, trusts, and venture capital companies. Single family offices are generally viable only for individuals with investable assets of over USD 50 million. - Africa
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