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The number of billionaires living in Africa has fallen by nearly 20,000 over the past decade as the continent's ultra-rich either emigrate or see their wealth eaten away by dramatic currency devaluations. Only 135,200 individuals now have assets of $1 million or more, an 8% decrease from 2013, according to a report from Henley & Partners. Combined with the continent's 342 centimellionaires and 21 billionaires, the combined wealth of these individuals is $2.5 trillion, the consultancy found.
“Weak currencies and weak stock markets are eroding Africa's wealth relative to global benchmarks,” Dominique Volek, Head of Private Clients at Henley & Partners, said in the report. Stated. “With African stock markets underperforming relative to their global peers, local real estate markets facing headwinds and currencies depreciating against the dollar, African investors are seeing their wealth eroded in many ways. I'm seeing it happening.”
Over the past decade, African economies have faced multiple challenges that have strained budgets and currencies, from COVID-19 to rising interest rates and geopolitical tensions. South Africa, which has more than twice as many wealthy people as any other African country, has lost 20% of its billionaires over the past decade as it grapples with logistics constraints, rolling blackouts and endemic crime and corruption.
During this period, the South African rand depreciated by 43% against the dollar, and the FTSE JSE All Share Index also underperformed the S&P 500.
Egypt and Nigeria, the second richest countries after South Africa, are grappling with runaway inflation, foreign exchange shortages and multiple currency devaluations to allow their regional units to trade more freely.
Despite all the challenges, Africa's billionaire population is expected to grow by 65% over the next 10 years, according to the report. According to the report, this increase will be driven by a surge in wealth in Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda and Rwanda, where the number of billionaires is expected to increase by at least 80%.
The report states: “With stable governance and a favorable tax regime, Mauritius is predicted to experience an impressive growth rate of 95%, making it one of the fastest growing asset markets in the world. “It will be positioned as such.” “Namibia is also poised for impressive growth in wealth.”
