Introduction:
Nairobi, the bustling capital city of Kenya, is gaining recognition as a regional hotbed of dollar millionaires. A recent report by Henley and Partners, titled the 2024 Africa Wealth Report, highlights the increasing number of High Net Worth Individuals (HNWIs) in Nairobi. The report projects that the number of dollar millionaires in Kenya could reach 12,960 within the next ten years, compared to the current figure of 7,200.
Nairobi’s Dominance in Wealth:
The report reveals that Nairobi is the primary residence for the majority of wealthy individuals in Kenya. Of the 7,200 dollar millionaires in the country, 61% are based in Nairobi. The city’s vibrant economy, diverse investment opportunities, and bustling business environment contribute to its appeal as a hub for wealth creation.
Regional Wealth Distribution:
While Nairobi takes the lead, other cities in Kenya also host a significant number of HNWIs. Mombasa, a coastal city known for its tourism industry, is home to a notable portion of wealthy Kenyans. The report suggests that Lusaka, the capital city of Zambia, and Mombasa are projected to experience solid growth of over 80%+ in terms of HNWIs. Additionally, the report predicts that Cape Town, in South Africa, is on track to surpass Johannesburg as Africa’s wealthiest city by 2030.
Wealth Distribution in Africa:
South Africa remains the country with the highest number of wealthy individuals on the continent. It boasts 37,400 millionaires, 102 centi-millionaires, and 5 billionaires. Egypt follows closely with 15,600 millionaires, 52 centi-millionaires, and 7 billionaires. Nigeria ranks third with 8,200 millionaires, 23 centi-millionaires, and 3 billionaires. Other countries with a notable presence of HNWIs include Morocco, Mauritius, Algeria, Ethiopia, Ghana, and Namibia.
Challenges and Migration:
Despite the growth in wealth, the report highlights a decline in Africa’s millionaire population by 20%. This decline is attributed to migration of HNWIs to high-income countries such as the UK, the USA, Australia, the UAE, France, Switzerland, Monaco, Portugal, Canada, New Zealand, and Israel. Henley and Partners report that approximately 18,700 HNWIs have left Africa in the past decade (2013 to 2023). However, Africa still boasts 54 billionaires, including Elon Musk, although only 21 of them remain on the continent.
Conclusion:
Nairobi’s emergence as a regional hotbed of dollar millionaires highlights the city’s growing economic significance and wealth creation potential. The report by Henley and Partners sheds light on the distribution of wealth in Africa, with South Africa leading the way. While Africa faces challenges in retaining its wealthy individuals, the presence of HNWIs in Nairobi and other African cities underscores the continent’s potential for prosperity and economic growth.
