SA is home to 33% of the continent’s centi-millionaires

South Africa, the continent’s most industrialised economy, is home to over 328 centi-millionaires (classified as those who hold investable wealth worth $100 million or more), accounting for more than 30% of Africa’s high-net-worth individuals (HNWI).

This is according to the eighth edition of the Africa Wealth Report put together by research organisation Henley & Partners together with New World Wealth.

The 2023 report, released on Tuesday, revealed that despite battling a tough decade, South Africa remains home to most of the continent’s wealthy population, with the country reportedly home to “over twice as many HNWIs as any other African country”, leading the pack of Africa’s ‘Big 5’ wealth markets which account for 56% of the continent’s HNWIs. South Africa’s peers in this segment include Egypt, Nigeria, Kenya and Morocco.

There are currently 138 000 HNWIs on the African continent. While $2.4 trillion of investable wealth is available.

“Egypt takes the prize for the most billionaires, and Mauritius boasts by far the highest wealth per capita (average wealth per person) in Africa, at $37 500, followed by South Africa at $10 880 and Namibia at $10 050,” the report found.

Africa’s investable wealth is expected to grow by 42% over the next decade.

“For our purposes ‘wealth’ refers to an individual’s net investable assets (including property, cash, and listed company holdings). Africa is home to some of the world’s fastest-growing markets, including the likes of Rwanda and Mauritius,” head of research at New World Wealth  Andrew Amoils said.

South Africa is also home to four of the top 10 wealthiest cities on the continent, with Johannesburg taking the cake with the most millionaires in Africa boasting a population of 14 600. Cape Town came in third with 7 200 HNWIs, while Durban and Pretoria came in sixth and eighth place with 3 600 and 2 400 HNWIs respectively.

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Continent on growth path

Research projections in the report reveal that Mauritius is one of the fastest-growing markets in the world. The East African country is expected to see the highest wealth growth rate, at 75% over the next 10 years. Making it the fourth fastest-growing country in the world in millionaire growth percentage terms after Vietnam, India and New Zealand.

Despite the growth in the continent’s wealthy population, Africa – which is home to more than a billion people – is also home to one of the world’s largest poor populations, with almost half of its people living under the extreme poverty line.

Group chair of the black women-owned investment company, WIPHOLD Louisa Mojela believes that the continent’s economic inequality offers great potential for investment growth.

“Known as the continent with both the youngest and fastest growing population means that Africa naturally holds the greatest potential for investment prospects.

“Additionally, having the dubious honour of also being the poorest continent opens up a myriad of opportunities from an investment growth potential point of view. Without a doubt, Africa provides the broadest and most fulfilling opportunities for impact investing,” Mojela said.

South Africa’s neighbour, Namibia, has also been identified as a growth hotspot for the continent in the next decade, with high-net-worth growth projected at 60% by 2032. Namibia’s growth according to the research will be supported by its source-based tax system and its recent implementation of its residence by investment offering.

“Namibia has one of the largest uranium reserves in the world and is currently attracting global attention with recent discoveries of gas and oil reserves off the coast,” senior manager at the Namibia Investment Promotion and Development Board, Catherine Shipushu said.

Listen to Moneyweb’s editor Ryk van Niekerk chat with Hein Klee, the head of International for Nedbank Private Wealth as they discuss South Africa’s HNWIs donation practices.