Kenya has secured its place among the top African countries with a significant population of millionaires, following South Africa, Egypt, and Nigeria, according to the recently released 2024 Africa Wealth Report.
The report unveils a dynamic landscape of wealth distribution across the continent, shedding light on key trends and challenges impacting economic prosperity.
At the forefront of this wealth spectrum lies South Africa, boasting a substantial lead with 37,400 millionaires, 102 centi-millionaires, and 5 billionaires.
Egypt emerges as the second wealthiest nation in Africa, with 15,600 millionaires, 52 centi-millionaires, and 7 billionaires.
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Nigeria closely follows, securing the third position with 8,200 high-net-worth individuals (HNWIs).
The report underscores the prominence of Kenya's financial landscape, with 7,200 HNWIs, with Nairobi being home to 4,400 of them.
Delving deeper into regional dynamics, the report highlights key cities serving as hubs for Africa's affluent population. Nairobi stands out alongside Johannesburg, Cape Town, Cairo, and Lagos, collectively hosting a significant percentage of the continent's wealthy inhabitants.
The Wealth Report offers critical insights into the challenges facing Africa's economic landscape. Currency depreciation and underperforming stock markets have posed significant hurdles, diminishing wealth compared to global benchmarks.
Dominic Volek, Group Head of Private Clients at Henley & Partners, notes the impact of currency fluctuations, with the South African rand experiencing a notable 43 per cent decline against the US dollar from 2013 to 2023.
"Currency depreciation and underperforming stock markets have chipped away at Africa’s wealth compared to global benchmarks," Volek remarked.
Similar trends are observed across other African currencies, including Nigeria, Egypt, Angola, and Zambia, amplifying the complexities of wealth management in the region.
Andrew Amoils, Head of Research at New World Wealth, underscores the issue of wealth migration, contributing to the erosion of the continent's prosperity.
Over the past decade, approximately 18,700 high-net-worth individuals have migrated from Africa, seeking opportunities abroad.
"According to our latest figures, approximately 18,700 high-net-worth individuals have left the continent over the past decade (2013 to 2023)," Amolis noted.
Despite Africa being the birthplace of 54 billionaires globally, including prominent figures like Elon Musk, only 21 of them continue to reside within the continent's borders.
The allure of countries such as the UK, the USA, Australia, and the UAE has led to a significant exodus of affluent individuals, impacting Africa's wealth distribution dynamics.
The report further emphasizes the collective dominance of Africa's 'Big 5' wealth markets, comprising South Africa, Egypt, Nigeria, Kenya, and Morocco.
Together, these nations account for 56 per cent of the continent's millionaires and over 90 per cent of its billionaires, underlining their pivotal role in shaping Africa's economic landscape.
As Africa navigates the complexities of wealth management amidst global economic uncertainties, the Africa Wealth Report serves as a crucial resource for policymakers, economists, and investors alike, offering valuable insights into the evolving dynamics of wealth distribution and migration across the continent.
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