South Africa tops the list of the Top 10 wealthiest countries in Africa in terms of resident high-net-worth individuals by some margin, according to the Africa Wealth Report 2023 released by Henley & Partners in partnership with New World Wealth Global intelligence firm.
The report provides a comprehensive review of the wealth sector in Africa, including trends among high-net-worth individuals, luxury trends, and wealth management trends on the continent, as well as expert insights on Africa’s investment migration sector. This year’s report also includes a special section on Africa’s Apex 7.
The 2023 edition reveals that the ‘Big 5’ wealth markets in Africa, South Africa, Egypt, Nigeria, Kenya, and Morocco together account for a massive 56% of Africa’s high-net-worth individuals and over 90% of the continent’s billionaires.
This table below shows South Africa’s high centi-millionaire count is particularly notable. Centi-millionaires are typically the founders of large multi-national companies, making their presence in a country particularly valuable when it comes to creating employment.
*Notes: Includes only individuals living in each country (residents). Figures for December 2022.
*Millionaire figure rounded to nearest 100.
*Source: New World Wealth
Some of the fastest growing markets in the world
The 2023 Africa Wealth Report is the continent’s annual benchmark for wealth research and is now in its 8th year, providing a comprehensive review of the wealth sector in Africa, including trends among HNWIs, the luxury market, and wealth management.
Andrew Amoils, Head of Research at New World Wealth, explains that “for our purposes ‘wealth’ refers to an individual’s net investable assets (including property, cash, and listed company holdings). Africa is home to some of the world’s fastest growing markets, including the likes of Rwanda and Mauritius.”
In terms of projections, Mauritius is expected to experience the highest wealth growth rate at 75% over the next decade (to 2032). This will make it the fourth fastest growing country in the world over this period in millionaire growth percentage terms, after Vietnam, India, and New Zealand.
Wealthiest cities and residential areas
Four of Africa’s Top 10 wealthiest cities are in South Africa — Johannesburg has the most millionaires in Africa, with 14,600, Cairo, in 2nd place with 7,400 resident HNWIs, is just ahead of Cape Town, which has 7,200. Lagos is in 4th position with 5,400 millionaires, and Nairobi is 5th with 4,700. The other two South African cities in the Top 10 are Durban, in 6th place with 3,600 and Pretoria in the 8th spot with 2,400 HNWIs.
The table below ranks South Africa’s major cities by the number of resident millionaires. It also compares their relative wealth growth rates over the past 10 years. Johannesburg and Pretoria performed relatively poorly in terms of growth when compared to the other cities and areas listed, mainly due to coastal semigration. If the current rate of internal
relocation continues, Cape Town is on track to overtake Johannesburg to become South Africa’s wealthiest city by 2040.
Top suburbs er city:
Johannesburg: Hyde Park, Sandhurst, and Westcliff are among Johannesburg’s most exclusive suburbs. There are also numerous lifestyle estates on the outskirts of the
city that are tailored to the super-wealthy, including Dainfern, Steyn City, and Waterfall Equestrian Estate.
Cape Town: The most affluent suburbs of Cape Town include Bakoven, Bantry Bay, Bishopscourt, Camps Bay, Clifton, Constantia, Fresnaye, and Llandudno. Slightly further
afield, there are also significant numbers of wealthy individuals residing in Somerset West, St. James, and Tokai.
Durban: Our figures here include wealth held in Durban, Umhlanga, Ballito, and La Lucia. This combined area features some of Africa’s top lifestyle estates including Zimbali, Simbithi, Brettenwood, Izinga, and Hawaan Forest Estate. Lagoon Drive in Umhlanga is also home to a large number of exclusive apartment complexes.
Cape Winelands: This picturesque region includes the towns of Paarl, Franschhoek, and Stellenbosch. There are several exclusive lifestyle estates in this area, including Val de Vie, De Zalze, Domaine des Anges, and Winelands Estate. Many of the wine farms in the area are owned by wealthy individuals, who often retire there.
Garden Route: A beautiful section of the coastline, stretching from Mossel Bay to Storms River, with popular towns for the affluent including Plettenberg Bay, George, Keurboomstrand, Knysna, Mossel Bay, and Wilderness as well as the village of Nature’s Valley.
Pretoria: Affluent parts of Pretoria, South Africa’s administrative capital that hosts all foreign embassies, include Waterkloof and Waterkloof Ridge, as well as luxury lifestyle estates such as Mooikloof Equestrian Estate and Silver Lakes.
Whale Coast: This coastal area lies between Cape Town and the Garden Route and includes the wealth hotspot of Hermanus, as well as the seaside villages of Betty’s Bay and Rooi Els. This region is the fastest growing area in South Africa for high-net-worth individuals.
According to New World Wealth’s latest figures, there are approximately 3,700 homes in South Africa that are valued at over USD 1 million. By this measure, South Africa ranks as one of the 20 largest prime residential markets in the world, well ahead of the other countries in Africa and in line with big emerging markets such as India and Brazil.
Dominic Volek, Group Head of Private Clients at Henley & Partners, says more African countries are setting their sights on attracting HNWIs by providing residence and citizenship by investment opportunities that have the potential to transform their economies by injecting essential foreign capital and encouraging sustainable growth.
“As wealth grows on the continent, and countries realize the benefits in aiding economic progress, we expect to see investment migration continue to gain ground in Africa in the coming years — not only on the demand side from African HNWIs looking to improve their travel freedom and economic mobility, secure location optionality, and mitigate risk, but also on the supply side, with more and more African countries looking to launch their own investment migration programs to increase the inflow of both capital and talent.”
*Note: “Wealth” refers to the net assets of a person. It includes all their assets (property, cash, equities, business interests) less any liabilities.
Want all the latest property news and curated hot property listings sent directly to your inbox? Register for Property24’s Hot Properties, Lifestyle and Weekly Property Trends newsletters or follow us on Twitter, Instagram or Facebook
Print
