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Why Africa’s fastest-growing economies are losing millionaires to global destinations
Africa, home to some of the world's fastest-growing economies, is witnessing a concerning trend as its wealthy elite migrate elsewhere, driven by factors such as currency depreciation, underperforming stock markets, and enticing opportunities abroad.
According to the latest wealth report by Henley & Partners, Africa's largest economies, including South Africa, Egypt, and Nigeria, have seen a significant decline in their millionaire populations over the past decade.
Between 2013 and 2023, the number of millionaires in these countries decreased by at least 20%, attributed to adverse economic conditions and a shrinking wealth landscape.
South Africa, boasting the highest number of individuals with a net worth exceeding $100 million, is particularly vulnerable, with the rand's 43% depreciation against the dollar and a 5% dip in the Johannesburg Stock Exchange threatening its affluent status.
While Africa's overall millionaire population is projected to increase by 65% in the next decade, certain countries are set to experience exponential growth. Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda, and Rwanda are expected to lead this surge, driven partly by investor-friendly policies encouraging migration and property ownership.
Head of Research at New World Wealth, Andrew Amoils, said that according to our latest figures, approximately 18,700 high-net-worth individuals have left Africa over the past decade (2013–2023). There are currently 54 African-born billionaires in the world, including one of the world’s richest, Elon Musk, but only 21 of them still live on the continent. Most of these individuals have relocated to the UK, the USA, Australia, and the UAE. Significant numbers have also moved to France, Switzerland, Monaco, Portugal, Canada, New Zealand, and Israel.”
Africa's millionaire class has faced challenges over the past decade, with poor growth in major markets hindering performance. While the JSE All Share Index saw a robust 65% increase in local currency terms, the 5% dip in USD terms reflects the impact of currency depreciation. Several African currencies, including Nigeria, Egypt, Angola, and Zambia, witnessed a drastic depreciation of over 75% against the USD during the same period, the report indicated.
The Africa Wealth Report, a collaborative effort between Henley & Partners and New World Wealth, offers insights into Africa's wealth landscape, including economic mobility, investment migration, and wealth management.
