Countries With The Highest Number of HNWIs In Africa
The country in Africa with the most HNWIs as at 2020 are as follows:
South Africa has been rated the top destination for luxury in Africa. It has 71,000 millionaires, about 60 percent of Africa’s total millionaires. Foreign luxury brands already have shops there and by 2020, Bain estimates there will be 420,000 South African households with more than $100k disposable incomes (Rice, Financial Times, 2013). Therefore, luxury companies and buyers are likely to continue to look to South Africa for luxury products. South Africa tops the list with the highest number of HNWIs standing at 39,200.
South Africa is followed by Egypt with 16,700 HNWIs
Nigeria ranks third on the list. It has only 9,900 HNWIs even though it is Africa’s most populous nation. Nigerians spend on luxury abroad than they do at home. Premier Tax-free states that Nigerians account for approximately 46 percent of total purchases by Africans in London (KPMG, 2015).
Let us explore a few examples on why Nigeria is one of the vanguards of luxury consumption in Africa. Some years ago, Germany’s luxury carmaker, Porsche, opened a new dealership on Victoria Island, one of the wealthiest districts in Lagos. Likewise, Italy’s luxury menswear label, ErmenegildoZegna, opened a franchise store on the same street, Akin Adesola, as Porsche. Euromonitor International argues that, “five years down the line, this strip could be Lagos’ equivalent of Bond Street or Calle Serrano.”
A 2017 report by Mauritius based AfrAsia Bank, New World Wealth listed Kenya as the second largest luxury goods market in Africa by revenue in 2017. The largest market for high-end goods in the continent is South Africa, which generated $2.2 billion in revenues. Kenya’s luxury goods market generated $500 million in revenue in the same year.
The report states that the revenue was generated from the sale of luxury cars, lavish clothes and accessories, high-end watches, private jets, and luxury hotels and lodges. Notably, the luxury market revenue in South Africa, Kenya, Morocco, and Egypt is largely boosted by the existence of many luxury hotels. Kenya has 8,600 HNWIs.
In addition to being considered a tourism destination, the peaceful country of Morocco has been tipped as a bourgeoning destination for luxury in Africa. Despite being small, the rapid growth of the retail sector has been regarded as contributory to the growth of its luxury industry.
Bloomberg’s Deborah Aitken & Maja Rakic (2015) report that Morocco and South Africa account for 86 percent of Africa’s directly operated luxury stores. The country’s steady economic growth in recent times has created a firm base of wealthy consumers, which has given rise to the growth of the luxury market. Morocco has approximately 4,600 HNWIs.