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News feed Date: 08 November, 2023

High Net Worth Individuals on the Rise in Africa

High Net Worth Individuals on the Rise in Africa

The African continent is known as Mother Africa because it’s where humankind was born. In recent years, this Mother has been creating an increasing number of high net worth individuals (HNWIs). These individuals have a net worth of at least $5million. We interviewed Ranny Muasher, our Nigeria Managing Director, for further insights into this trend.

1.) Credit Suisse data establishes Africa as home to the most rapidly-growing population of millionaires with the number expected to double to 768,000 by 2027. What are the reasons behind this wealth surge, Ranny?

“From what I can tell as an observer and an operator of a business in the region, there are some key demographic themes. There’s been a huge adaptation to technology in Africa.” 

“We’ve had a leap from no tech to high tech. This presents huge opportunities to those with an entrepreneurial mindset. We have seen the establishment of a strong tech ecosystem throughout certain places that serve as hubs, in Nigeria, Kenya, and South Africa.”

“Then there’s the demographics relating to Africa’s young people. There has been a massive increase in the youth population. This has led to a significant growth in consumers which creates opportunities for all areas of development.”

“Africa’s very rich in human and natural resources. These include hydrocarbons, minerals, and a staggering proportion of the world’s arable land. Africa has the capacity to feed a growing world.”

2.) What impact is this having on the African economy?

“Although there are regional considerations, the general movement is upwards. The impact is tangible as wealth is emerging with younger hands. There has been an emergence of a new generation of African entrepreneurs who are creating wealth through innovation.”

“We’re seeing people at a younger demographic face long-standing challenges around corruption, bureaucracy, and currency valuation and devaluation. Yet the youth are disrupting the old world order. They are resilient despite facing traditional barriers and obstacles that stand in their way.”

3.) Ranny, what are the biggest challenges African HNWIs face?

“I’ve already touched on some of them. To expand, African HNWIs face currency problems, access to foreign capital, and economic and political instability. These remain in spite of the development.”

“The African Continental Free Trade Area (AfCFTA) agreement has helped. This will cut through red tape like a knife through butter. Yet the single biggest challenge as individuals is access to capital and opportunities abroad where they can reinvest or connect their business to the global market.”

“We may have populist leaders espousing differences and looking inward, but the world continues through technology to become more integrated. Many parts make up the whole. Look at any piece of technology, a mobile phone, an automobile, and you’ll find it will have components from literally all over the world.”

“There’s a global supply chain. African HNWIs crave access. They want to harness their wealth to bring these kinds of technologies back into the countries or grow them themselves.”

4.) What has been the effect on interest in Residency and Citizenship by Investment?

“We’ve seen continued growth in wealth in certain established markets like Nigeria, South Africa, and Egypt. However, there is wider prosperity now. Financial institutions, private banks, retail banks, asset management companies, and investment funds are seeking collaborations with us as they’re looking for ways to offer additional services to their clientele.”

“African high net worth individuals continue to seek ways to better protect their families, increase their mobility, improve their security, and enhance their lifestyles. RCBI products allow them to do just that by keeping one foot in the country where they create their wealth and having one foot out where they can seek further opportunities.” 

“This interest will continue to grow. African HNWIs want alternative ways to protect their future.”  

“There’s a lifestyle angle too. African high net worth individuals want the same level of luxury as HNWIs from Europe and North America. Residency and Citizenship by Investment allows them that opportunity.”

5.) How do you see the future for African wealth, Ranny?

“I predict that African wealth will continuously grow. This is despite the challenges that we see in today’s market.”

 “There are specific sectors that will create wealth. These are financial technology (fintech), agricultural technology (agritech), and infrastructure and  logistics. If stability is improved across various African nations, this will lead to economic growth and that will inspire African entrepreneurs and ignite more wealth creation.”

“Governance will need to improve but overall I’m optimistic. With increased growth, there will be an increase in reinvestment in the market. This triggers economic activity. RCBI has a role to play here – when HNWIs acquire foreign second citizenships and residencies, they tend to spend time abroad and then bring back ideas and reinvest in their home countries.”

“Economic growth has many positive collateral effects such as increased tax revenues for governments and job creation. This makes a more conducive environment for wealth for all. When governments address logistical and infrastructural challenges, this can ignite these initial sparks of wealth.”

Our Nigeria Managing Director Ranny Muasher explains why high net worth individuals are on the rise in Africa.

Giving High Net Worth Individuals in Africa a Helping Hand

Are you an African HNWI? If so, we can aid you in negotiating the hurdles you face in managing your wealth.

So, don’t delay. Contact Latitude Group, Citizenship and Residency by Investment experts, today.

High Net Worth Individuals on the Rise in Africa

Date: 08 November, 2023

Posted in: News feed