AfrAsia Bank pursues its collaboration with New World Wealth, a leading wealth intelligence company in South Africa, to bring out for the third consecutive year, the AfrAsia Bank Africa Wealth Report.
This report provides a review of the wealth sector in Africa, including high-net-worth individuals’ market, luxury trends and wealth management insights across the continent.
According to the report, total wealth held in Africa currently amounts to around USD 2.2 trillion. South Africa tops the chart of the wealthiest countries in the continent followed by Egypt and Nigeria. The report projects a 35% rise in total private wealth held on the continent over the next 10 years reaching USD 3.0 trillion by 2028. Mauritius, Ghana, Rwanda and Uganda are set to emerge as the strongest performing wealth markets in Africa during this period.
While South Africa, Tanzania and Ivory Coast are likely to continue growing moderately at some 30%, Morocco, Egypt and Nigeria are expected to struggle over the forecast period with wealth growth dipping to 10% to 20%.
In terms of the wealthiest individuals in Africa, Mauritius ranks first with an average wealth of USD 31,000 per person. It also has the fastest growing wealth market in the African continent, recording wealth growth of 124% between 2008 -2018. The key factors contributing to this wealth growth include: security and safety, strong ownership rights, strong economic growth, a well-developed banking system, ease of investment and low tax rates.
Sanjiv Bhasin, CEO of AfrAsia Bank pointed out that: “Africa is the hinterland for Mauritius. The report findings confirm that over the next decade, multiple African economies will show positive growth. Mauritius is well positioned to be the preferred International Financial Centre which can receive capital, and thereafter channel into investments wherever is needed. By being recipient of wealth and having a deep understanding of the African continent, Mauritius can be an advisor for rooting that wealth into various corners of Africa depending upon how the wealth owners perceive that particular risk.”