Cape Town, the Cape winelands, Tangier and Marrakesh, Kigali, Nairobi, Windhoek and Swakopmund are cities and areas in Africa to consider relocating to if you harbour ambitions of becoming the continent’s next dollar millionaire or billionaire.
This is according to the “Africa Wealth Report” for 2024, released this week by wealth advisory firm Henley & Partners in collaboration with its partner New World Wealth.
According to the report, there are 135,200 high net worth individuals (HNWIs), with liquid investable wealth of $1m (more than R19m) or more, living in Africa, along with 342 centimillionaires (those worth $100m or more), as well as 21 dollar billionaires.
However, the report found the growth of the super wealthy in Africa was beset with challenges.
“Currency depreciation and underperforming stock markets have chipped away at Africa’s wealth compared to global benchmarks. The rand fell 43% against the dollar from 2013—2023, and even though the JSE all share index, which makes up substantially more than half of Africa’s listed company holdings, rose in local currency terms, it was down 5% in dollar terms.
“Currencies in most other African countries also performed poorly compared to the dollar over the past 10 years, with dramatic depreciations of over 75% recorded in Nigeria, Egypt, Angola and Zambia,” Dominic Volek, Henley & Partners’ group head of private clients wrote.
With the exception of Mauritius, African nations consistently lose large numbers of HNWIs annually due to emigration. This prevents them from reaching their full potential, as much of their hard-earned wealth growth is eroded
Johannesburg is once more topping the list, with the highest number of dollar millionaires and billionaires in Africa — 12,500 in total — calling the city home.
According to the report, most of Johannesburg’s top-end wealth is concentrated in the suburbs surrounding Sandton City Shopping Centre — the richest square mile in Africa.
“In particular, the Sandton suburbs of Sandhurst, Hyde Park and Inanda are all home to large numbers of HNWIs, as is the ‘old money’ suburb of Westcliff, which is located closer to the old Johannesburg CBD.”
Cape Town, benefiting from the “semigration” of hundreds of wealthy South Africans to the country’s south-western coast, takes second spot, with 7,400 HNWIs.
“It is also an increasingly popular retirement destination for migrating millionaires from Europe and the rest of Africa. Cape Town is on track to overtake Johannesburg to become Africa’s wealthiest city by 2030,” the report said.
The Cape winelands has attracted 3,600 HNWIs, with many of its luxury wine estates owned by centimillionaires and other super-wealthy people who choose to retire there.
Durban, Umhlanga and Ballito in KwaZulu-Natal are home to a combined 3,500 ultra-wealthy individuals, while the seaside towns dotted along the Garden Route in the southern Cape — such as Plettenberg Bay, Knysna, Mossel Bay, George and the Wilderness — have attracted 3,200 HNWIs.
Suburbs and estates on the eastern side of Pretoria — including Waterkloof, Silver Lakes Golf Estate, Mooikloof Equestrian Estate and Woodhill Golf Estate — share 2,100 HNWIs who call them home.
Outside South Africa, Egypt has produced seven dollar billionaires — the highest concentration in the continent — along with 52 centimillionaires.
Nairobi has the second-highest concentration of dollar millionaires and centimillionaires at 4,400.
Nigeria, especially its commercial hub Lagos, is home to 4,200 of these ultra-wealthy people, including 23 centimillionaires and three dollar billionaires.
Morocco counts 6,800 HNWIs among its population, including 32 centimillionaires and four dollar billionaires.
However, those with ambitions of becoming the next dollar millionaires or billionaires may want to consider relocating to Mauritius, Rwanda, Morocco, Namibia, South Africa’s Whale Coast, or its Garden Route. These fastest-growing African towns and cities all experienced millionaire growth of more than 30% over the past decade (2013-2023), Henley & Partners found.
Areas experiencing phenomenal growth include the village of Grand Baie in Mauritius, which saw a +95% growth in HNWIs over the past decade; the Rwandan capital Kigali, (+88% growth); Marrakech in Morrocco (+65% growth); Swakopmund in Namibia (+43% growth); the Whale Coast, encompassing the towns of Hermanus, Rooi-Els and Betty’s Bay (+35% growth); the Garden Route (+32% growth); and the Namibian capital Windhoek (+30% growth).
“Over the next decade (to 2033), we expect Cape Town, the Whale Coast, Kigali, Windhoek, Swakopmund, Nairobi, Tangier and Marrakesh to lead the pack with +85% millionaire growth projected in each. We also expect Lusaka [Zambia] and Mombasa [Kenya] to attract rising numbers of HNWIs.”
According to the compilers of the report, the migration of wealthy people to a country helps to build its wealth, while wealth migration away from a country does the opposite.
“With the exception of Mauritius, African nations consistently lose large numbers of HNWIs annually due to emigration. This prevents them from reaching their full potential, as much of their hard-earned wealth growth is eroded,” it further noted.
Elements that make a country, city or town attractive to the super wealthy include high levels of safety and security, as well as growth in key wealth-creating sectors such as tech, manufacturing, mining and tourism. Competitive tax rates were also factor, the writers said, citing the UAE, Monaco and Singapore as examples of the power of lower taxes encouraging wealth creation.
A well-developed banking system and stock market, media freedom and strong ownership rights were also key factors — with South Africa scoring well here, as its stock exchange is in the world’s top 20, and the country boasts a modern and efficient banking system.
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