Henley and Partners: Millionaire Population in Africa Declines 8%

The number of millionaires living in Africa has declined by about 20,000 over the past decade, as the ultra-rich moved away from the continent or saw a major currency decline eat away at their wealth.

There are now only 135,200 people on the continent with a fortune of $1 million or more, down 8% from 2013, according to a report by Henley and Partners, in addition to 342 millionaires (those with more than $100 million) and 21 Billionaires on the continent, the total wealth of these individuals amounts to $2.5 trillion, according to the consulting firm’s findings.

"South Africa remains home to over twice as many HNWIs as any other African country, with 37,400 millionaires, 102 centi-millionaires, and 5 billionaires, followed by Egypt with 15,600 millionaires, 52 centi-millionaires, and 7 billionaires. Nigeria sits in 3rd place with 8,200 HNWIs, followed by Kenya (7,200 millionaires), Morocco (6,800), Mauritius (5,100), Algeria (2,800), Ethiopia (2,700), Ghana (2,700), and Namibia (2,300)," according to Henley and Partners.

“Currency depreciation and poor stock market performance have left Africa’s wealth lower by global standards,” Dominic Volek, head of the private client group at Henley & Partners, said in the report.

He added, “With African stock markets underperforming against their global counterparts, local real estate markets facing headwinds, and currencies depreciating against the dollar, African investors have seen their wealth erode on multiple fronts.”

Africa's economies have faced multiple challenges over the past decade that have put pressure on their balance sheets and currencies, from the coronavirus pandemic to rising interest rates and geopolitical tensions. South Africa, which has more than twice as many wealthy individuals as any other African country, has lost 20% of its millionaires over the past 10 years, as the country has faced logistical challenges, power outages and endemic crime and corruption.

During that time, the South African rand has fallen by 43% against the US dollar, and the FTSE JSE has lagged the S&P 500.

Egypt and Nigeria, which have the second-largest number of wealthy people after South Africa, suffer from hyperinflation, foreign exchange shortages and multiple currency devaluations to allow their local currencies to circulate more freely.

Despite all the challenges, the number of millionaires in Africa is expected to increase by 65% over the next decade, according to the report. The report also stated that the gains will be driven by increased wealth in Mauritius, Namibia, Morocco, Zambia, Kenya, Uganda and Rwanda, all of which are expected to see growth in the number of millionaires by at least 80%.