Africa’s millionaire factory

Key findings in the NWW report:

• South African HNWIs outperformed the worldwide HNWI
average during the review period (2007 to 2013), with South African HNWI numbers increasing by 14% whilst worldwide HNWI volumes declined by 0.3%.

• The rise in US dollar-based HNWI wealth occurred despite a significant 30% depreciation of the rand currency against the US dollar during the review period.

• HNWI growth was positively influenced by a rise in new business formation, particularly in the BEE arena, as well as solid local stock exchange returns and rising commodity prices.

• Growth in HNWI wealth and volumes will be solid over the forecast period as more new businesses are developed within the country.

Zambia

• At the end of 2013, there were approximately 900 HNWIs in Zambia, with a combined wealth of $4.4bn.

• The average age of HNWIs in Zambia is 59, above the worldwide average of 56.
• The majority of local HNWIs, 29%, are aged between 61 and 70.
• At the end of 2013, Zambian HNWIs held 31% ($1.3bn) of their wealth abroad compared to 45% in 2007.

Angola

• At the end of 2013, there were approximately 6,400 HNWIs in Angola, with a combined wealth of $30bn, accounting for roughly 45% of Angola’s total individual wealth.
• Angola is one of the fastest growing wealth markets in the world with HNWI numbers rising by 68% since 2007 and by over 400% since 2000.

• Females accounted for only 7% of Angolan HNWIs in 2013. This is relatively low compared to the worldwide average of over 20%.

• At the end of 2013, real estate was the largest asset class for HNWIs in Angola (34% of total HNWI assets), followed by business interests (21%), equities (19.3%), cash and bonds (18.7%) and alternatives (6.9%).

Ghana

• At the end of 2012 there were 800 HNWIs in Accra.
• Ghana is one of the fastest growing wealth markets in Africa with HNWI numbers rising by 56% between 2007 and 2013 and by over 400% since 2000.

• At the end of 2013, Ghanaian HNWIs held 24% ($2.4bn) of their wealth abroad compared to 36% in 2007.

• Financial services is the primary source of wealth for 24% of HNWIs.

Kenya

• In 2013, there were approximately 8,300 HNWIs in Kenya, with a combined wealth of $31bn, accounting for roughly 62% of Kenya’s total individual wealth ($50bn).

• Kenya has the fourth highest number of HNWIs in Africa after South Africa, Egypt and Nigeria.
• Kenyan HNWIs outperformed the worldwide HNWI average during the review period, with Kenyan HNWI numbers increasing by 24% whilst worldwide HNWI volumes declined by 0.3%.

• HNWI growth was positively influenced by rising commodity prices and business growth, particularly in the construction and real estate, telecoms, banking and transport and logistics sectors.


Nigeria

• In 2013, there were 15,700 HNWIs in Nigeria, with a combined wealth of $82bn, accounting for roughly 36% of Nigeria’s total individual wealth ($227bn).

• Nigeria has the third highest number of HNWIs in Africa.
• Nigerian HNWIs outperformed the worldwide HNWI average during the review period, with Nigerian HNWI numbers increasing by 44% whilst worldwide HNWI volumes declined by 0.3%.

• HNWI growth was influenced by rising commodity prices and an increase in new business formation, particularly in telecoms sector.
Source: New World Wealth