Namibians Named 3rd Wealthiest People With Wealth per Capita in Africa

Reports by Mauritius’ AfrAsia Bank and Johannesburg-based market research firm New World Wealth found Namibians to be the third wealthiest people in Africa,

According to the report, the average wealth of a person living in Namibia (wealth per capita) was US$10 800 (about N$142 500) in 2016, up from US$10 200 (about N$132 600 ) in 2015.

Mauritians were found to be the wealthiest in Africa, with US$25 700 (about N$339 000) in wealth per person. At the other end, the report found that Zimbabweans, with just US$200 (about N$2 600) per person, were the poorest in Africa.

South Africans are the second wealthiest people in Africa with an average wealth per person of US$11 300 (about N$149 000) in 2016.

Botswana comes fourth at US$6 700 (about N$88 400) per person.

According to the researchers, they preferred to use wealth per capita rather than gross domestic product (GDP) per capita to determine wealth. For instance, GDP ignores the efficiency of the local banking sector and the local stock market at retaining wealth in a country.

THE MILLIONAIRES

With a population of just over two million people, the reports says Namibia is home   to 3,300 millionaires. These were defined as individuals with wealth of US$1million (about N$13,2 million) or more.

Namibia also has 120 multi-millionaires. The report defines these individuals as having wealth of US$10 million (N$132 million) or more.

The report indicates that 1 400 of Namibia’s millionaires live in Windhoek, and the city is home to 60 multi-millionaires.

Namibia is classified as one of the most unequal societies in the world, with a Gini index of 61,3, and a highly skewed wealth and income distribution.

SECOND HOMES ABROAD

The report shows that 34% of African ‘high net worth individuals’ (HNWI) (millionaires in this regard) owned residential property in other countries at the end of 2016, and especially preferred international cities such as London, New York, Geneva, Sydney, Paris, Melbourne, Tel Aviv and Dubai.

Owning property in London, New York, Sydney, Melbourne and Tel Aviv was especially popular amongst South African millionaires. While London, Geneva and Paris properties are popular amongst Nigerian millionaires, Dubai is popular amongst Egyptian, Nigerian, Algerian and Moroccan millionaires.

A large number of African millionaires also buy homes in other African countries, most notably South Africa, the report further reveals.

The majority of African millionaires buying houses in South Africa are from Angola, Ghana and Nigeria.

The Africa Wealth Report 2017 was produced by New World Wealth for Mauritian private and corporate bank AfrAsia. According to its website, New World Wealth is a “global market research group, based in Johannesburg, South Africa, and provides customised services to wealth managers, family offices, real estate professionals, migration platforms and fund managers”.