Zimbabweans Poorest in Africa, Johannesburg the Financial Hub

In a report released by an international survey company that tracks the wealth of people across Africa, it was found that Mauritians are the wealthiest individuals not he continent and Zimbabweans the poorest.

The Annual 2016 Wealth Report released by Research and Markets said that Mauritians had about US$21,700 per person, while people in Zimbabwe had US$200 per person.

“Ownership rights are key to facilitating wealth creation. In Zimbabwe, business owners are unsure as to whether their businesses or property will still belong to them a year down the line, which creates a situation where no one will take the chance of investing in the country,” said the report.

It also said that South Africa (mainly Johannesburg) was the hub of financial activity in Africa, with some $72 billion under asset management, and that the African countries to watch for private banking were Ghana and Kenya.

Other findings;

• There are approximately 165,000 HNWIs (high-net-worth individuals) living in Africa, with combined wealth holdings of US$860 billion.
• Approximately US$125 billion of African HNWI  wealth is tied up with wealth management companies.
• South Africa (mainly Johannesburg) is the hub for African private banking with US$72 billion in assets under management.
• African HNWIs (outside South Africa) tend to keep their funds in traditional holding centers such as the UK, the Channel Islands and Switzerland. Dubai is another popular destination, especially for North African HNWIs.
• It is estimated the African private banking market will grow by 7 percent per annum over the next 10 years.
• The most promising emerging African markets for private banking are Ghana and Kenya.
• In Africa, around US$28 billion is tied up in venture capital companies and foundations that are linked to the wealthy. Many HNWIs use these vehicles as a way to transfer money to the next generation.