Image: Commons Wikimedia
In Kenya, the number of dollar millionaires is on the rise, yet the reality is stark: five out of 13 Kenyans live in abject poverty, underscoring a widening wealth gap.
The recent Africa Wealth Report by Henley & Partners, a London-based investment migration consultancy, reveals a 30 percent increase in the number of Kenyans worth over $1 million (Sh130 million) from 2013 to 2023, ranking among the highest growth rates in the region.
Mauritius and Namibia precede Kenya in this regard, with their millionaire populations soaring by 87 and 32 percent, respectively, to 5,100 and 2,300 individuals.
During the same period, 16 Kenyans joined the league of those worth over $100 million (Sh1.3 billion), with no reported dollar billionaires in the country.
Meanwhile, South Africa continues to dominate the continent, boasting 37,400 dollar millionaires. Egypt and Nigeria trail behind, with 15,600 and 8,200 millionaires, respectively.
However, despite these figures, the growth rates of wealthy individuals in Egypt and South Africa have declined by 22 and 20 percent, respectively, over the past decade. Morocco counts four-dollar billionaires, Nigeria three, and Algeria one.
Overall, Africa has witnessed an eight percent decrease in the growth rate of wealthy individuals, totaling 135,200.
While there are 342 individuals with $100 million, the continent hosts only 21-dollar billionaires.
The report highlights a total investable wealth of $2.5 trillion on the African continent, with the millionaire population projected to increase by 65 percent over the next decade.
Africa's 'Big 5' wealth markets—South Africa, Egypt, Nigeria, Kenya, and Morocco—comprise 56 percent of the continent's millionaires and over 90 percent of its billionaires.
The decline in the number of wealthy individuals is attributed to currency depreciation and underperforming stock markets, impacting Africa's wealth compared to global standards.
"Currencies in most African countries have performed poorly against the dollar over the past decade, with significant depreciations recorded in Nigeria, Egypt, Angola, and Zambia,” noted Dominic Volek, Group head of Private Clients at Henley & Partners.
Echoing Volek’s observations, Andrew Amoils, head of Research at New World Wealth, pointed out the significant migration of high-net-worth individuals (HNWIs) from Africa, contributing to the erosion of the continent's wealth.
“As of June 2022, Dangote was the wealthiest person in Africa, with an estimated net worth of $20 billion.”
