Africa’s Millionaire Population Declines Over Past Decade Due to Economic Challenges

The key points regarding the decline in Africa’s millionaire population over the past decade are:

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• Wealth Decline: The number of millionaires in Africa has decreased by nearly 20,000 in the past decade, now totaling 135,200¹.
• Economic Factors: This decline is attributed to currency depreciation, underperforming stock markets, and various economic challenges¹.
• South Africa’s Impact: South Africa, which has the largest number of wealthy individuals in Africa, lost 20% of its millionaires due to issues like logistics constraints, rolling blackouts, and crime¹.
• Future Outlook: Despite these setbacks, the millionaire population in Africa is expected to rise by 65% over the next decade².

These insights highlight the economic volatility and potential for growth within the continent.

Over the past decade, the number of millionaires residing in Africa has decreased by nearly 20,000, attributed to factors such as emigration and significant currency devaluations that have eroded the wealth of the continent’s ultra-rich.

According to a report by Henley & Partners, there are currently 135,200 individuals in Africa with assets worth $1 million or more, representing an 8% decline since 2013. This figure includes 342 centimillionaires and 21 billionaires, with a combined wealth estimated at $2.5 trillion.

Dominic Volek, the group head of private clients at Henley & Partners, highlighted the impact of currency depreciation and underperforming stock markets on Africa’s wealth compared to global standards. Local property markets have faced challenges, and currencies have depreciated against major currencies like the dollar, leading to wealth erosion for African investors.

Africa’s economies have encountered numerous difficulties in the past decade, including the Covid-19 pandemic, rising interest rates, and geopolitical tensions, which have strained budgets and currency values. South Africa, with the highest concentration of wealthy individuals in Africa, has experienced a 20% decline in millionaires over the last 10 years due to logistical issues, power outages, and prevalent crime and corruption.

During this period, the South African rand has depreciated by 43% against the US dollar, and the FTSE JSE All Share Index has underperformed compared to the S&P 500.

Other African countries like Egypt and Nigeria, with substantial wealthy populations, have faced challenges such as runaway inflation, foreign exchange shortages, and multiple currency devaluations aimed at achieving more flexible exchange rates.

Despite these obstacles, the report predicts a 65% increase in Africa’s millionaire population over the next decade. This growth is anticipated to be driven by countries like Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda, and Rwanda, where millionaire populations are expected to grow by at least 80%.

“Mauritius, known for its stable governance and favorable tax regime, is projected to experience an impressive 95% growth rate, positioning it as one of the world’s fastest-growing wealth markets,” the report noted. “Namibia is also poised for significant high-net-worth growth.”