Private wealth in Africa set to jump to US$3 trillion in the next decade

Private wealth in Africa set to jump to US$3 trillion in the next decade
Daniel Nzomo, 25, who does geotagging for driverless cars using Poa! Internet provider, walks in Pipeline estate, Nairobi, Kenya, March 23, 2022. REUTERS/Monicah Mwangi

If you’ve seen or watched “Young, Famous & African” on Netflix, it’s probably given you a disproportionate glimpse into the lifestyles of a handful of Africans. But, according to a Henley & Partners Africa Wealth Report, Africa in general, over the next decade, will be really happening, with private wealth in the country expected to jump 38% to US$3 trillion by 2031. ​​Mauritius, Rwanda and Uganda are expected to be leading the trend and other countries like Kenya, Morocco, Mozambique and Zambia, are expected also to contribute a fair bit. The question for many now is, will this wealth be spread somewhat evenly across the country?

Key comments:

“While the number of millionaires on the continent over the past decade has not increased exponentially, the number of centi-millionaires and billionaires has shot up,” writes CEO of MyGrowthFund Venture Partners Vusi Thembekwayo. “This theme supports the idea that the continent needs to deal with the legacy industries whose ownership structures perpetuate inequality. Not only that but it also supports the notion that the continent needs to increase the exposure of and education regarding financial markets to ordinary households.”

“What is exciting about the prospects for wealth in future for the African continent is the diversification of the sources of creating wealth. The new economies that are built on technologies, driving inclusion and the now in-vogue environmental, social and corporate governance criteria are attracting new capital into the fold and creating more liquidity in the secondary capital markets. Over the next decade, the trend of accumulating wealth will continue, but the unanswered question is whether this growth will be more evenly spread and begin to reduce inequality,” writes Thembekwayo.