Zimbabwe missing on African wealth map

South Africa is the richest of five nations that have the individuals holding more than 50 percent of the continent’s private wealth according the Africa Wealth Report 2022.

The other four are Egypt, Nigeria, Morocco, and Kenya.

Surrounded by neighbours who are doing well, making Southern Africa the place with the most private wealth in Africa, Zimbabwe is conspicuous by its absence on the map.

Botswana, Namibia, Zambia and Mozambique are in the top 17. But South Africa, Zambia and Botswana have all seen a reduction in the net worth of privately held wealth in the period under review.

South Africa is red flagged with around 4500 high net individuals having left the country over the past 10 years for countries other countries. Of the 15 South African born billionaires, only five are still left in the country.

The study reveals that private wealth in Africa is now at US$2.1 trillion with about 21 billionaires on the continent. Forbes ranking places the number at around 17. Zimbabwe’s only Billionaire Strive Masiyiwa is now ranking at the bottom of the Forbes list after having made it into the top 10 before.

Covid-19 induced lockdowns and more recently effects of the Ukraine conflict have resulted in many high net individuals across the world losing out.

Some analysts believe that undeclared wealth including hidden externalised funds could reveal that Zimbabwe has more high net individuals. Reports such as these and Forbes rankings are based on verified holdings.

Mauritius is the strongest economy in Africa with the highest per capita wealth of US$34,000 and has seen the strongest growth in the past 10 years followed by Rwanda and Ethiopia.

Nigeria remains Africa’s largest economy and has the richest man, Ailko Dangote but has suffered a downward spiral in terms of individual wealth along with the general economy.

With high inequality in some countries, the number and net worth of individuals is not necessarily an indicator of the general national economic status as poverty can co-exist with excessive wealth.

As a result, Mauritius has seen the strongest growth in total private wealth over the past decade, followed by Rwanda and Ethiopia.

But the report says the future is bright as African economies are developing and diversifying with private wealth predicted to reach US$ 3 trillion by 2031.