Over the past decade, Africa has seen about 18,700 high-net-worth individuals leave the continent.
They left due to falling local currencies and weak stock markets. Countries like Nigeria, Egypt, Angola, and Zambia have seen significant currency declines against the dollar.
For example, from 2013 to 2023, the South African rand dropped 43% against the US dollar.
Despite these financial challenges, the future looks promising. The 2023 Africa Wealth Report predicts a 42% increase in the continent’s millionaire population by 2032, reaching around 195,000.
Mauritius is expected to become a significant wealth hub, with one of the fastest growth rates globally.
South Africa, Egypt, Nigeria, Kenya, and Morocco, known as Africa’s ‘Big 5’ wealth markets, currently account for 56% of its millionaires and over 90% of its billionaires.
Yet, many have moved to more stable regions like the UK, USA, Australia, and the UAE due to economic factors.
Other reasons for the wealth flight include regulatory issues, insufficient infrastructure, security concerns, and strict tax policies.
Still, countries like Rwanda, Namibia, Zambia, Seychelles, the Democratic Republic of the Congo, and Morocco are expected to see notable increases in their HNWI populations.
Emerging sectors such as fintech and green tech, alongside growing interest in eco-tourism and women-led businesses, are likely to drive future wealth growth in Africa.
These factors suggest a dynamic future for the continent’s economic development, offering significant opportunities for recovery and growth despite the current challenges.