According to the annual Africa Wealth Report released Tuesday, August 26, by Henley & Partners and New World Wealth, the population of millionaires and billionaires continues to grow on the continent. Often concentrated in the wealthiest corners of Africa, it is expected to continue to increase over the next ten years.

Today, Africa has approximately 122,500 millionaires, 348 centimillionaires, and 25 billionaires. This represents a significant change from the late 20th century, when many African economies were in decline.

The report reveals a strong growth in the number of millionaires on the continent, which is expected to increase by 65% in the next decade. For Romain Ligault, wealth management advisor at Henley & Partners for West and Central Africa, this development is supported by robust economic growth on the continent: "For example, we need to look at the growth in sub-Saharan Africa. It is recording growth of nearly 4%, higher than in Europe."

The continent's economic growth combined with the increase in the number of ultra-wealthy individuals is making Africa increasingly attractive, says Romain Ligault: "As for Africans based in Africa, these are people who are already, by and large, invested in their home country or in a pan-African region and who want to diversify their investment portfolio. But we are facing a dual dynamic. There are more and more foreign investors who are actually beginning to consider the African continent as a sustainable continent, as a long-term destination."

"We are far from this idea of bling-bling"

South Africa dominates in terms of the number of millionaires (34% of the total), closely followed by Egypt, Morocco, Nigeria, and Kenya. Countries with veritable centers of wealth that allow the ultra-rich to diversify their investments, explains Romain Ligault: "If you take the example of Mr. Aliko Dangote, who is one of the most important businessmen in Africa, he will operate—if I had to make a comparison—an investment policy like the Arnault family. So we are not very far from this idea of bling-bling. It is true that real estate investment is an important investment, but many of these large families diversify their investments through structured products, through private equity, venture capital, etc."

Johannesburg remains the richest city in Africa, while Cape Town attracts the largest fortunes and positions itself as a future real estate leader. This phenomenon is causing real estate prices to explode there. Today in Cape Town, the average price per square meter is $5,800.

Increasingly eclectic profiles

While there are still many families who have perpetuated a family business, often pan-African, over several generations, new profiles are emerging. "Men and women, businessmen and women, who come from various sectors of activity, such as the tech sector, as in Benin and Togo. Coming from the mining industry, the real estate or finance sectors, this entire segment of the population is booming," concludes Romain Ligault.

The continent is thus poised to become a major player in global wealth, provided it improves its governance and ensures a wider distribution of wealth. This is the case for Mauritius, the sixth richest country in Africa, which has recorded the strongest growth in the number of wealthy individuals on the continent over the last decade (+63%).