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Namibia ranks third in per capita income


NAMIBIA has been ranked third among nations with the highest wealth per capita in Africa after Mauritius and South Africa.

According to Ventures Africa, an online publication, Mauritius has the highest wealth per capita in Africa of US$34 500 per average citizen, followed by South Africa at US$10 470 and Namibia at US$9 320 (N$160 000).

Simonis Storm economist Theo Klein explained that this figure is the country’s estimated wealth divided by the estimated number of people in the country.

“In reality, not everyone has this money. While Mauritians can be richer than Namibian, this does not apply to everyone. An unemployed man in Mauritius will be in the same situation as an unemployed man in Namibia,” he said.

Klein said because of inequality, this money is only in the hands of a few rich people.

On the top 10 per capita list, Namibia is followed by Botswana, Morocco, Egypt, Ghana, Kenya, Angola and Côte d’Ivoire.

The Africa wealth report for 2022 that a South African research firm New World Wealth and Henley & Partners published, says South Africa holds US$651 billion, Egypt (US$307 billion) and Nigeria (US$228 billion) in private wealth, accounting for US$1,18 trillion or 56% of Africa’s total estimated wealth of US$2,1 trillion.

Other wealthy African countries are Morocco, which holds private wealth estimated at US$125 billion while Kenya holds US$91 billion.

“From a global perspective, South Africa, Nigeria and Egypt were among the top 15 nationalities, with South Africa in fifth place globally with a growth of 38% in 2021; Nigeria was in seventh place with growth of 15%; and Egypt was in 14th place with growth of 25%,” Dominic Volek, the group head of private clients at Henley & Partners, said in the report.

The report says South Africa is home to over twice as many dollar millionaires as any other African country. Furthermore, South Africa has the two wealthiest cities on the continent, with Johannesburg being the richest, with a total private wealth of US$239 billion. Cape Town comes in second, with a wealth of US$131 billion. Next are Cairo with US$128 billion and Lagos US$97 billion.

According to the survey, Africa has 136 000 high net worth individuals (people with net assets of US$1 million or more), but only 6 700 people have more than US$10 million. The continent also has only 21 billionaires, and 305 Africans own private property worth at least US$100 million.

SKEWED WEALTH DISTRIBUTION

The study shows Africa’s highest wealth was recorded in 2012 at US$2,4 trillion, while 2017 had the highest number of dollar millionaires at 148 000.

“That shows that Africa still has a disturbing wealth distribution problem,” said the report.

According to New World Wealth, Africa’s wealth will grow by 38% over the next decade, with “over 60% growth expected in Uganda and Rwanda by 2031, and over 50% in Kenya and Zambia.”

It expects the technology and professional services sectors to champion this growth.

According to the report, “South Africa has the largest luxury market in Africa by revenue, followed by Kenya and Morocco.”

Over the next decade, the African wealth management market is expected to grow by 60%. Africa still has plenty of work to do to close its wealth gap. The tech and professional services sectors, which this report expects to lead Africa’s wealth growth, are highly dependent on the education sector, which is still underfunded and underequipped, the researchers said.

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