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Africa could be next hub for super wealthy individuals: report

Xinhua, March 10, 2016 Adjust font size:

African continent could be home to the highest concentration of ultra rich individuals in the next decade thanks to economic renaissance occasioned by rapid investments, entrepreneurship and innovations, said a report by global real estate firm, Knight Frank, launched in Nairobi on Thursday.

According to its 2016 Wealth Report, the population of super wealthy individuals in Africa will increase by 54 percent from 2015 to 2025 when compared to the global average of 41 percent in the same period.

Executives were upbeat that wealth creation in Africa will accelerate despite risks associated with insecurity, global inflationary pressures, climate change and political uncertainty.

"There is a tremendous inflow of capital from all parts of the world into Africa and this phenomenon has created a new class of super wealthy individuals. The trend will continue despite several risks," Knight Frank Africa chairman Peter Welborn said.

The report said Africa's super wealthy have revitalized the real estate and luxury goods market.

According to the report, the continent's ultra high net worth individuals, worth 30 million U.S. dollars and over, have invested heavily in luxury homes, private jets, cars, bonds and equities.

"Homes comprise an estimated 22 percent of assets owned by Africa's super wealthy and they have allocated 33 percent of their portfolios to liquid investments such as bonds and equities," it noted.

It added that collectables such as wine, art, antiques, jewellery and classic cars will gain popularity among Africa's ultra wealthy individuals in the coming decade.

The report revealed that Kenya, South Africa, Nigeria, Angola and Egypt have the highest population of high net worth individuals.

According to the report, an estimated 200 Kenyans crossed the million dollar mark in 2015, thus growing the country's dollar million population to 8,500 from 8,300 in 2014.

Offshore investors drawn from China, the Gulf region, Europe and America will continue to channel their capital into Africa in the near future.

Executives noted that foreign investors' appetite for Africa will accelerate wealth creation in the continent.

"There is real optimism from external investors on Africa's potential. They are forging joint ventures with local players to grow businesses that have unleashed wealth among the middle and upper classes," said Welborn. Enditem