The 2024 Africa Wealth Report predicts a 65 percent rise in millionaires by 2033, despite economic and mobility hurdles
The 2024 Africa Wealth Report by Henley & Partners reveals that the total investable wealth on the African continent stands at US2.5tn, with the millionaire population expected to increase by 65 percent over the next ten years.
Currently, Africa is home to 135,200 high-net-worth individuals (HNWIs) who possess USD 1 million or more in investable wealth, alongside 342 centi-millionaires and 21-dollar billionaires.
The report, now in its 9th edition, highlights that South Africa, Egypt, Nigeria, Kenya, and Morocco—the “Big 5” wealth markets—collectively house 56 percent of the continent's millionaires and over 90 percent of its billionaires.
Dominic Volek, head of Private Clients at Henley & Partners, points out that currency depreciation and underperforming stock markets have negatively impacted Africa's wealth relative to global benchmarks.
For instance, the South African Rand depreciated by 43 percent against the US dollar from 2013 to 2023, and despite local gains, the JSE All Share Index fell by 5 percent in USD terms over the same period.
Other African nations, including Nigeria, Egypt, Angola, and Zambia, also experienced significant currency depreciations, over 75 percent in some cases.
Andrew Amoils, Head of Research at New World Wealth, notes that migration of wealthy individuals has been a factor in the erosion of Africa's wealth base. In the last decade, approximately 18,700 HNWIs have migrated from Africa.
Currently, of the 54 African-born billionaires globally, only 21 reside on the continent.
Despite challenges, South Africa remains the wealthiest country in Africa, hosting 37,400 millionaires. It is followed by Egypt, Nigeria, Kenya, Morocco, and others in the top ten wealthiest African nations.
Looking ahead, Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda, and Rwanda are all projected to see significant growth in their millionaire populations by over 80 percent by 2033.
Mauritius is expected to witness a 95 percent growth in its wealthy population, making it one of the world's fastest-growing wealth markets.
Johannesburg remains Africa's wealthiest city with 12,300 millionaires, followed by Cape Town and Cairo.
The report forecasts substantial growth in millionaire populations in cities like Cape Town, the Whale Coast, Kigali, Windhoek, Swakopmund, Nairobi, Tangier, and Marrakech, all expected to see increases exceeding 85 percent over the next decade.
However, economic mobility remains a significant issue, as highlighted by Prof. Mehari Maru from the Migration Policy Centre at the European University Institute.
He reports that African visa applicants face much stricter restrictions compared to other regions, with a 30 percent rejection rate of all processed applications, the highest globally.
Chidinma Okebalama, senior consultant at Henley & Partners Nigeria, emphasizes the role of passport strength in determining financial freedom, noting that restrictive visa policies limit African entrepreneurs and investors from accessing global markets, thereby hindering their economic potential and financial prosperity.
