Ethiopia rolls out dollar millionaires at the fastest rate

Ethiopia registered 108% growth (topping all of Africa from a low base) in dollar millionaires in the six years period between 2007 and 2013 to have 2700 of high net worth individuals (HNWI) while South Africa recorded moderate growth in this period but remains on top in Africa in terms of total number of HNWI.

This comes out of the latest survey results of New World Wealth, an Oxford based wealth consultancy. The survey looked at millionaires across the African continent. It says Millionaires refer to individuals with net assets of US$1 million or more excluding their primary residences.

“This study focuses on HNWI performance between the end of 2007; the peak before the global financial crisis; and 2013. This enables us to determine how well the country’s HNWIs have performed through the crisis,” said the statement announcing the findings.

Key findings have Ethiopia as the fastest growing African country for millionaires over the past 6 years followed by Angola, Tanzania, Zambia and then Ghana.

Africa: Fastest growing countries for millionaires, 2007 – 2013

Rank

Country

Growth %

Millionaires, 2007

Millionaires, 2013

1

Ethiopia

108%

1,300

2,700

2

Angola

68%

3,800

6,400

3

Tanzania

51%

3,700

5,600

4

Zambia

50%

600

900

5

Ghana

50%

1,600

2,400

6

Nigeria

44%

10,900

15,700

7

Algeria

41%

2,900

4,100

8

Ivory Coast

31%

1,600

2,100

9

Morocco

26%

3,900

4,900

10

Kenya

24%

6,700

8,300

Note: Numbers rounded to nearest 100.
Source: NW-Wealth.com   

The survey juxtaposes growth in millionaires in countries’ to GDP per capita growth. In the case of Ethiopia there appears to be a strong correlation. Ethiopia also shows strong (93%) GDP per capita growth which tops the African list for the period between 2007 and 2012. “It should be noted, however, that it (Ethiopia) does start from a very low base so the growth is somewhat expected. Ethiopia is one of the largest countries in Africa in terms of population with over 85 million inhabitants and we expect it to become one of the 10 largest African wealth markets by 2030.”

 The statement also noted that over the 2007 to 2013 period many developed markets experienced a decrease in millionaire numbers. “Overall, worldwide HNWI numbers are up by only 9% since 2007.”

In Africa, South Africa remains on top with 48,700 millionaires in 2013, followed by Egypt with 22,800 and Nigeria with 15,700.

Africa: Top 10 countries ranked by millionaires, 2013
Rank Country Millionaires, 2007 Millionaires, 2013 Growth %
1 South Africa 42,800 48,700 14%
2 Egypt 22,300 22,800 2%
3 Nigeria 10,900 15,700 44%
4 Kenya 6,700 8,300 24%
5 Tunisia 5,600 6,400 14%
6 Angola 3,800 6,400 68%
7 Libya 6,200 6,300 2%
8 Tanzania 3,700 5,600 51%
9 Morocco 3,900 4,900 26%
10 Algeria 2,900 4,100 41%

Source: NW-Wealth.com 

“In terms of growth rate forecasts to 2030, Ivory Coast comes out on top, followed by Zambia, Ghana and then Ethiopia,” said the statement.

By 2030, South Africa will still be the top ranked African country in terms of millionaires, while Nigeria will jump ahead of Egypt.”

Africa: Fastest growing countries for millionaires, 2013 – 2030
Rank Country Millionaires, 2013 Millionaires, 2030 Growth %
1 South Africa 48,700 86,700 78%
2 Nigeria 15,700 43,000 174%
3 Egypt 22,800 34,700 52%
4 Kenya 8,300 21,200 155%
5 Angola 6,400 15,600 144%
6 Tanzania 5,600 15,200 171%
7 Tunisia 6,400 12,400 94%
8 Libya 6,300 10,500 67%
9 Morocco 4,900 9,700 98%
10 Ethiopia 2,700 7,900 193%

Source: NW-Wealth.com 

news@ujuh.co.za

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