Africa’s Millionaires Forecast to Double

Africa’s Millionaires Forecast to Double

According to research firm New World Wealth, millionaires in Nigeria, Kenya and Angola will more than double by 2030, enhancing the prospects for private banking in Africa. Millionaires in Nigeria, Africa’s biggest oil producer, will rise 174 per cent to 43,000 from 15,700 this year, the company said, after using a sample of HNW individuals and World Bank data to compile a report, which also shows South Africa stays top with a 78 per cent increase to 86,700.

South Africa has boosted its dollar millionaires to 7,800 last year from 4,300 in 2007 — although the rand has fallen about 25 per cent to the dollar over this period. According to the research, 16 per cent of the country’s millionaires are black, Indian, coloured or Chinese, although whites still dominate the list, with 36,500 males and 4,400 females. Of the wealthiest black South Africans, Patrice Motsepe of African Rainbow Minerals leads with $2.6bn made from mining interests.

Andrew Amoils, a Johannesburg-based analyst at New World Wealth, said: “We expect Nigeria, Ghana, Kenya will be the main drivers of wealth management growth in Africa. They all already have relatively well-developed banking sectors so private banking is a logical next step.”

Nigeria will overtake Egypt into second place behind South Africa in New World Wealth’s projected 2030 ranking of African countries by dollar millionaires. Nigeria has a “pretty diverse spread of millionaires” with transport, finance, real estate, basic materials and telecommunications also driving the economy, Mr Amoils said.

Millionaires in Ghana will triple by 2030 with an advance of 144 per cent in Angola. The number of HNWIs in Ethiopia, which grew the fastest over the past six years, will almost triple to 7,900 by 2030 amid a privatisation programme, said Mr Amoils.

The number of Africans with at least $1m of investable assets climbed 9.9 per cent to 140,000 last year, according to a June report published by Cap Gemini and Royal Bank of Canada, That was the fastest rate of increase outside North America as the economies of countries such as Nigeria and Ghana grew at more than 5 per cent last year.

HNWIs are growing fastest in Côte d’Ivoire, where millionaires are expected to more than triple to 7,200 by 2030 as cocoa and oil production boost the economy. Copper, agriculture exports and tourism will help triple millionaires to 2,700 in Zambia, where some rich farmers have relocated from neighbouring Zimbabwe.

New World Wealth used some research by Credit Suisse and Trading Economics.

Source: familyofficenews.wordpress.com

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