Africa’s Ultra-Rich Exodus: 20,000 Millionaires Leave the Continent
In the past decade, Africa has witnessed a significant decline in its millionaire population, with nearly 20,000 wealthy individuals either moving away or facing wealth erosion due to currency depreciations. According to a report by Henley & Partners, there are now only 135,200 millionaires in Africa, marking an 8% decrease from 2013.
The continent’s 342 centimillionaires and 21 billionaires also saw a decrease in their total wealth, which currently stands at $2.5 trillion. Factors such as currency depreciation, underperforming stock markets, and economic challenges have contributed to the decline in wealth among Africa’s ultra-rich.
Countries like South Africa, Egypt, and Nigeria, which have a significant number of wealthy individuals, have been particularly affected by challenges such as inflation, foreign exchange shortages, and currency devaluations. South Africa, in particular, has lost 20% of its millionaires in the last decade due to logistics constraints, power outages, and high levels of crime and corruption.
Despite the current challenges, the report predicts a 65% increase in Africa’s millionaire population in the next decade. Countries like Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda, and Rwanda are expected to see significant growth in their millionaire populations, driven by factors such as stable governance, favorable tax regimes, and economic growth opportunities.
Overall, Africa’s ultra-rich are facing a shifting landscape, with some countries poised for impressive growth while others continue to grapple with economic challenges. Subscribe to the CFO Daily newsletter to stay updated on the latest trends and developments in corporate finance.