As part of the Africa 2016 Wealth Report, research company New World Wealth reviewed the fastest growing African countries for millionaires over the eight-year period between the end of 2007 - the peak before the financial crisis - and the end of 2015.
Going forward over the next 10 years (2015-2025), Mauritius is expected to continue to be the fastest growing country in Africa for millionaires.“Millionaires” or “high-net-worth individuals” individuals are those with net assets of US$1 million or more. For the purposes of the report, local millionaires include all individuals who are living or working in a country, including expats.
Mauritius was the top performing African country for millionaires during this period, with growth of 160%. Ethiopia and Kenya also performed well with growth of 130% and 60% respectively. Africa’s big 3 - South Africa, Nigeria and Egypt - were less successful and all of them experienced negative millionaire growth during the eight year period.
The strong growth in millionaires in Mauritius was driven by:
- Strong economic growth.
- Secure ownership rights.
- Migration: a large number of wealthy individuals have moved there over the past decade. We estimate that 240 millionaires have moved there from South Africa alone since 2007.
- It has become a major retirement destination.
- Low taxes which encourage business formation and appeal to retirees. Company and personal income tax rates are only 15%, with no inheritance or capital gains tax.
- Automatic citizenship if one buys a US$500,000+ home in the country.
- A thriving and growing financial services sector, particularly in offshore banking, fund management and private banking.
- Low level of government regulation in the business sector (when compared to nearby countries such as South Africa which has exchange controls, high taxes, big trade unions and BEE hiring requirements).
- Lifestyle - beaches, weather and scenery.
- Low crime rate.
In line with the rise of wealth on the island, there are several new luxury developments going up, many of which are golf estates.
See this article article - 'Wealthy South Africans Moving to Mauritius' - for more information on Mauritius.
Going forward over the next 10 years (2015-2025), Mauritius is expected to continue to be the fastest growing country in Africa for millionaires, while Ivory Coast and Kenya are also expected to perform well. - Andrew Amoils
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