The number of ultra-high net worth individuals, those with at least $30 million in assets in Africa, will increase by a staggering 59% over the next decade, stronger than the 34% projected global growth.
According to The Wealth Report 2015, compiled by Knight Frank with support from Standard Bank Wealth and Investment, previously Standard Bank Private Clients, it will be a case of the MINT of Mexico, Indonesia, Nigeria and Turkey trumping the BRICS of Brazil, Russia, India, China and South Africa. The average expected uplift for Mint countries is 76% over the next decade, which narrowly defeats the 72% for BRICS nations, according to research which includes the Global Cities and Global Attitudes annual surveys. The global average is just 34% and the average increase expected across the G8 developed nations is 28%.
“The market is evolving and we are foreseeing positive future growth in key African countries like Nigeria, which has one of the strongest forecast growth rates in high-net-worth individuals over the coming decade,” says Margaret Nienaber, Global Chief Executive of Standard Bank Wealth and Investment.
The research findings put the growth of Nigeria’s ultra-high-net-worth individuals by 2024 at 90%, but the top spot for Africa is reserved for the Ivory Coast at 119%.
“Africa is one of the regions of the world with huge potential to grow its wealth, driven by a rising middle class and the increased success of many businesses. Importantly, reforms in many countries are being expedited, infrastructure is happening at a startling pace and foreign investors are noticing,” Nienaber says.
“The countries mentioned in this report have certainly built credibility among foreign investors and it is little surprise economic activity in the region is growing at a faster pace than anywhere else in the world,” she says.
According to The Wealth Report, the total number of ultra-high-net-worth individuals rose by almost 5,200, or 3%, in 2014. Property remains the cornerstone of many investment strategies as it accounts for almost a third of all ultra-high-net-worth individuals’ portfolios.
“UHNWIs are adopting increasingly sophisticated investment strategies, and sometimes this approach involves the kind of active management previously restricted to institutions and funds,” Shirley says.
Despite concerns about the global economy, 80% of the almost 500 private bankers that participated in the annual Attitudes Survey, expect their clients’ wealth to grow further in 2015.
“The wealth space in Africa is going to be extremely exciting over the next decade. It is a reflection of the ongoing interest in the continent as a destination for investors and businesses and the pace of wealth generation will increase exponentially as this trend continues,” concludes Nienaber.
