Real Estate Investor Magazine South Africa April 2015 | Page 56

AFRICA

Africa’s
Wealthiest

Africans surge up the ranks of
ultra-high-net-worth individuals
BY ROSS LINSTROM AND IMA PETER

T

he 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.
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April 2015 SA Real Estate Investor

“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.

“Property… accounts for almost a
third of all ultra-high-net-worth
individuals’ portfolios.”
“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.

RESOURCES

The Wealth Report 2015, Knight Frank, Standard
Bank Wealth and Investment
www.reimag.co.za