It is published by Henley & Partners, the global leader in residence and citizenship by investment, in partnership with South African wealth intelligence firm New World Wealth.
The report is the benchmark for luxury sector research in Africa.
Knowing where affluent individuals live, understanding their spending habits, and being aware of their preferences is of critical importance to the providers of wealth management and luxury services in Africa and globally.
Moreover, a thorough understanding of wealth trends, sectors and practices amongst HNWIs is an invaluable resource for any person aspiring to build sustainable wealth.
The report indicates that Namibia is third on the continent on a wealth per capita basis with only Mauritius and South Africa ahead of it.
MILLIONAIRES
Simply put, wealth per capita is a measure of the amount of money earned per person in a nation.
This demographic should not be a surprise, considering Namibia”;s relatively small population, but it arguably suggests that the standard of living for a single Namibian ought to be higher when contrasted with the country”;s total economic output.
Further, Namibia boasts total private wealth of US$24 billion. Total wealth refers to the private wealth held by all individuals living in a country, including their assets (property, cash, equities and business interests) less any liabilities.
The report also reveals that Namibia has 1 700 HNWIs with more than US$1 million, 60 multi-millionaires with over 10 million USD, and three centi-millionaires with more than US$100 million. There are no USD billionaires in Namibia.
In terms of the wealth growth trends on the continent, the total wealth held in Africa has fallen by 7% over the past decade (2011 to 2021).
This was influenced by poor returns in the three largest African markets, namely South Africa, Egypt and Nigeria.
In particular, the wealth growth rate in Namibia has declined (-5%) over the past 10 years. Nevertheless, the total private wealth held in Africa is expected to rise by 38% over the next 10 years – reaching US$3 trillion by 2031.
This is very healthy compared to other regions globally. It will be driven by especially strong growth in Africa”;s technology and professional services sectors.
WEALTHY CITIES
The report also reviewed Africa”;s wealthiest cities by total private wealth. Johannesburg (US$239 billion) and Cape Town (US$131 billion) are Africa”;s two wealthiest cities.
Further, in terms of revenue, South Africa is home to the largest luxury market in Africa, followed by Kenya and Morocco.
Major components of this include luxury hotels and lodges, cars, clothing and accessories, watches, private jets, and yachts.
The wealth management sector with a focus on family offices as a fast-growing wealth management segment in Africa and throughout the world is also explored.
It is outlined that usually only individuals with net assets of more than US$50 million are wealthy enough to have family offices.
Other themes of note captured in the report include the best ways to contact HNWIs, the impact of the coronavirus, and the rise of lifestyle estate living.
With regards to the spotlight on South Africa, despite a tough decade to date, Namibia”;s southern neighbour remains home to more than twice as many millionaires than any other African country.
It ranks 28th in the world by this measure, ahead of major economies such as Turkey, Argentina, Malaysia and Thailand.
PROFESSIONS
The fields of study pursued by HNWIs in South Africa is topped by law (LLB, LLM) holders at 30%, finance and accounting at 28%, “;other”; is put at 20%, computers and IT and medicine and science are at 7%, respectively, with engineering at 5%, and mathematics and statistics at 3%.
Top universities boasting HNWI alumni are also considered, with the University of Cape Town (UCT) topping the list with 20%.
Amongst others, the report states that based on its research, the most important factors that encourage wealth growth in a country include high safety and security, media freedom, robust ownership rights, strong economic growth, a well-developed banking system and stock market, low level of government intervention, low income tax and company tax rates, ease of investment and wealth migration.
* Wayne Rukero is an African economic law and policy researcher and candidate attorney; waynoxrukero@gmail.com; Twitter: @SelwynWayne
