The 2016 Africa Wealth Report and third in the series produced by Research and Markets has stated that Mauritians are the wealthiest individuals in Africa with an estimated US$21,700 in wealth per person.
The report also stated that people in the Zimbabwe are the poorest with US$200 per person. It provides a comprehensive review of the wealth sector in Africa, including, luxury trends and wealth management trends in each country and number of High Net Worth Individuals (HNWI), with South Africa having the highest number.
According to the report there are approximately 165,000 HNWIs living in Africa, with combined wealth holdings of US$860 billion, with around US$125 billion their wealth tied up with wealth management companies.
It revealed that African HNWIs (outside South Africa) tend to keep their funds in traditional holding centers such as the UK, the Channel Islands and Switzerland. “Dubai is another popular destination, especially for North African HNWIs,” the report added.
“In Africa, around US$28 billion is tied up in venture capital companies and foundations that are linked to the wealthy. Many HNWIs use these vehicles as a way to transfer money to the next generation,” it stated.
The report further estimated that the African private banking market will grow by seven per cent per annum over the next 10 years.
“The most promising emerging African markets for private banking are Ghana and Kenya, while South Africa (mainly Johannesburg) is the hub for African private banking with US$72 billion in Assets under management (AuM),” it stated.
Captured comprehensively in a separate report “The South Africa 2016 Wealth Report”, the authors noted that South Africa is the largest HNWI market in Africa.
“At the end of 2015, there were approximately 38,500 HNWIs living in South Africa, with a combined wealth of US$159 billion; South African HNWI volumes decreased by 10 per cent during the review period (2007 – 2015),” it stated.
The report noted that growth was negatively influenced by a significant depreciation of the Rand against the US dollar, falling equity markets and the migration of a significant number of HNWIs out of the country, as well as constraints by the current electricity crisis and a rising level of government regulation in the business sector.
It said 2015 was a particularly poor year for SA millionaires as HNWI volumes declined by 18 per cent during the year.
Over the two year forecast period, the number of South African HNWIs is forecast to grow by 10 per cent, to reach approximately 42,300 by 2017.
Source: Footprint to Africa