If African countries were to be ranked top to bottom according to their riches, the island country Mauritius will rank first place at the top while Zimbabwe rank at the very end of the tail.
A report by Research and Market titled, The Africa 2016 Wealth Report shows Mauritius as the richest country in Africa with the average wealth standing at $21,700 per person. Zimbabwe ranks at the bottom of the list with $200.
Mauritius casts a shadow even on Africa often talked about economies like South Africa, Nigeria, Egypt and Kenya. South Africa has a per capita wealth of $10,300, Namibia $10,200, Botswana $8,400 and Algeria $6,200.
The report highlights some of the factors that made Mauritius the richest country in Africa. These factors include low taxes, low crime rates, a flourishing financial sector, big number of wealthy immigrants, less government regulation in the private sector, and secure property rights.
This report (in its third edition) also delved into studying the trends of the High Net Worth Individuals (HNWIs), wealth management trends and the luxury trends in all the countries. The report says there are about 165,000 HNWIs in Africa. When combined these individuals have a worth of about $860 billion. These HNWIs individuals have at least $1 million, without taking into account their living expenses. Of the $860 billion by HNWIs, $125 billion is tied to wealth management companies.
Johannesburg, South Africa also emerges as the hub for Africa’s private banking with a minimum of $72 billion stored there. The private banking sector is at the same time predicted to grow at a record 7% rate per year over the next decade. Kenya and Ghana emerged as the most promising emerging markets in Africa for the private banks.
Most of the HNWIs use venture capital companies as a vehicle to transfer money to the next generation. There is about $28 billion tied up to venture capital companies and foundations in Africa linked to the HNWIs.