Africa, a continent known for its breathtaking landscapes, cultural diversity, and storied history, is home to some of the world’s most affluent cities. Henley & Partners, in collaboration with New World Wealth, has released its annual ranking of African cities with the most wealthy residents in the Africa Wealth Report. The report explores trends in high-net-worth individuals, luxury, wealth management, and provides insightful perspectives on investing in Africa, the migration sector, and economic mobility on the continent.
Based on the number of millionaires (in US dollars), here are the top 10 richest cities in Africa:
1. Johannesburg (14,600 Millionaires)
Established during the Witwatersrand Gold Rush of 1886, Johannesburg reigns supreme as Africa’s richest city. The city’s affluence primarily emanates from Sandton, home to the JSE, Africa’s largest stock exchange, and the headquarters of numerous major African banks and corporations. The city’s primary industries are financial and professional services.
2. Cairo (7,400 Millionaires)
Nestled on the banks of the Nile River, Cairo is renowned for its significant historical importance and is globally recognized as a major city. It also hosts the most billionaires of any African city. The key sectors of Cairo’s economy include financial services, telecommunications, retail, tourism, and basic materials.
3. Cape Town (7,200 Millionaires)
Boasting Africa’s most luxurious neighbourhoods such as Clifton, Bantry Bay, Fresnaye, Llandudno, Camps Bay, Bishopscourt, and Constantia, Cape Town has the highest prime residential rates on the continent. These rates rival cities like Washington, D.C., or Berlin. Its major industries revolve around real estate and fund management.
4. Lagos (5,400 Millionaires)
Lagos, Africa’s most populous city, is the primary economic hub for West Africa. Its affluent neighbourhoods include Ikoyi and Victoria Island. Key sectors of Lagos’s economy encompass basic materials, oil and gas, transportation, and financial services.
5. Nairobi (4,700 Millionaires)
Nairobi, one of the fastest-growing cities globally, is East Africa’s economic epicenter. Affluent areas in Nairobi include Runda Estate, Lavington, Kitisuru, Karen, and Muthaiga. Major industries in Nairobi comprise financial services, real estate, tourism, media, and various manufacturing sectors.
6. Durban (3,600 Millionaires)
Durban, a coastal city known for its vibrant port, is another significant wealth center in South Africa. Its economy thrives on sectors such as tourism, transportation, and manufacturing.
7. Casablanca (2,800 Millionaires)
Casablanca, Morocco’s largest city, is a major economic hub, with industries such as finance, business, and industrial sectors driving its economy.
8. Pretoria (2,400 Millionaires)
As South Africa’s administrative capital, Pretoria hosts several influential sectors, including government services, education, and research.
9. Accra (2,000 Millionaires)
Accra, the capital of Ghana, boasts a diverse economy with sectors like manufacturing, real estate, and service industries contributing significantly to its wealth.
10. Luanda (1,800 Millionaires)
Rounding off the list is Luanda, the capital of Angola. The city’s wealth largely stems from its oil industry, which has spurred significant economic growth.
The increased concentration of wealth in these
cities provides a clear indication of the dynamic economic landscape across the African continent. These cities have not only become the epicenters of prosperity, but they also play a pivotal role in attracting investments and fostering economic growth in their respective regions.
Africa’s Growing Economic Landscape
Despite the challenges posed by factors such as political instability and infrastructural deficiencies, these cities have demonstrated resilience and adaptability. They have managed to create an environment that not only allows for wealth accumulation but also facilitates economic growth and development.
Moreover, the rise in high-net-worth individuals in these cities also correlates with the increasing emphasis on luxury and wealth management services, reflecting the continent’s growing appetite for premium products and services.
Investing in Africa’s Future
The future looks promising for these cities, with the emergence of new sectors such as technology and renewable energy creating new wealth generation avenues. Additionally, the continued growth and development of traditional sectors like finance, real estate, and manufacturing suggest that these cities will continue to dominate the continent’s wealth landscape.
The Africa Wealth Report also presents insightful perspectives on investing in Africa, emphasizing that the growth of these affluent cities represents substantial investment opportunities for both domestic and foreign investors. Investors have the potential to tap into thriving sectors like real estate, finance, telecommunications, retail, tourism, and basic materials.
Furthermore, the migration sector also shows potential, with more high-net-worth individuals opting for investment migration programs, leading to increased economic mobility on the continent.
The landscape of wealth in Africa is evolving, and these ten cities are at the forefront of this transformation. Their growth and prosperity provide a positive outlook for the continent’s future and open up numerous opportunities for investment and economic development. While challenges persist, the wealth trends reflected in these cities indicate a promising future for Africa, signalling its potential to emerge as a significant player in the global economy.