Where Are Africa’s Millionaires?

Where Are Africa’s Millionaires?

Johannesburg is Africa’s No. 1 city for millionaires, and is expected to retain the top spot through 2020, with the South African cities of Cape Town, Durban and Pretoria ranking in the top 10, according to a report in TheNewAge.

A study by New World Wealth, which tracks wealth trends in Africa, shows Johannesburg with 23,400 millionaires – No. 1 in Africa.

Cairo is ranked No. 2 with 12,300 millionaires and Lagos, No. 3 with 9,800. Cape Town and Nairobi round out the top five, with four South African cities in the top 10.

South Africa is the largest economy in Africa, but the future might be different as other African countries enter high-speed economic growth fueled by commodities while South Africa’s economy grows at moderate rates, the report said.

South Africa’s economy is expected to grow by 2 percent in 2013 and sub-Saharan Africa, to average 5 percent growth. Countries like Ghana may go higher.

Oil and gas are driving this growth. The latest PwC report on African oil and gas trends says Africa is poised for momentous growth due to recent finds. Particularly in Mozambique and Tanzania, and oil potential in Uganda and Kenya, a flurry of exploration activity in under way, PwC Africa oil and gas advisory leader Chris Bredenhann said in the report.

The rest of the top 10 cities for millionaires includes Durban with 2,700 millionaires, Casablanca with 2,700, Pretoria with 2,500, Luanda with 2,400, and Algiers with 2,300.

The study also includes a list of fastest-growing cities for millionaires over the next eight years up to 2020 – but only cities with 800-plus millionaires in 2012 made the list. Accra in Ghana is expected to be the fastest growing major city for African millionaires over the next eight years, with millionaire numbers expected to rise from 800 in 2012 to 1,500 in 2020.

South African cities are expected to dominate the top 10 list by 2020. Johannesburg will have more than 30,000 millionaires by 2020 and is expected to remain No. 1 of all African cities. Cape Town is expected to rank fourth with about 11,700 millionaires while Durban should be eighth with 3,600 and Pretoria, 10th with 3,400 millionaires.

The study also featured top 10 cities for multi-millionaires – people with more than $30 million each. Johannesburg was No. 1 with 285, followed by Cairo with 145 multi-millionaires and Lagos with 123.

In addition to cities, the study also ranked he top 10 African countries for millionaires in 2012.

South Africa was No. 1 with 48,800, followed by Egypt with 23,000 and Nigeria with 15,900. Remaining Top 10 countries include Kenya (8,400), Angola (6,400), Tanzania (5,700), Libya (5,400) Tunisia (6,500), Morocco (4,900) and Algeria (4,100).