The AfrAsia Bank Africa Wealth Report © New World Wealth Page 1 The AfrAsia Bank Publicaon Date: September 2018 Africa Wealth Report 2018MAURITIUSThe AfrAsia Bank Africa Wealth Report © New World Wealth Page 2 TABLE OF CONTENTS LIST OF TABLES. 3 1 Introduction . 4 1.1 What is this Report About? . 4 1.2 Notes and definitions . 4 2 Country statistics . 5 2.1 Benchmarking Africas Wealth in Context . 5 2.1.1 World statistics. 5 2.1.2 Africa statistics . 5 2.2 Wealth per capita rankings . 6 2.3 Total wealth rankings . 7 2.4 Wealth growth trends . 8 3 City statistics . 11 4 HNWI trends in Africa . 13 4.1 Behavioural mapping . 13 4.2 Prime real estate . 14 4.3 Largest luxury markets by revenue . 16 4.4 Luxury clothing & accessory brands . 17 4.5 Luxury cars . 18 4.6 Luxury hotels & lodges . 19 4.7 Exclusive liquor . 20 4.8 HNWI wardrobe . 21 4.9 Wealth management sector . 22 4.9.1 Wealth managers and private banks . 22 4.9.2 Spotlight on family offices. 22 5 Drivers of wealth growth in a country . 24 6 Spotlight on the rise of Mauritius . 25 7 About the Sponsor / Author . 27 The AfrAsia Bank Africa Wealth Report © New World Wealth Page 3 LIST OF TABLES Table 1: Africa: HNWI wealth band definitions .4 Table 2: Africa: Top 10 wealthiest countries in Africa by per capita wealth, 2017 .6 Table 3: Africa: Top 10 wealthiest countries in Africa by total wealth, 2017 .7 Table 4: Africa: Wealth growth by country, 2007 - 2017 .8 Table 5: Africa: Wealth growth by country, 2017.9 Table 6: Africa: Major African cities by total wealth, 2017 .12 Table 7: Africa: Behavioral mapping of the different wealth bands, 2017 .13 Table 8: Africa: Major cities ranked by price per square meter, 2017 .14 Table 9: Africa: Largest luxury markets by revenue, 2016 - 2017 .16 Table 10: Africa: Luxury brand stores, 2017.17 Table 11: Africa: Upcoming luxury brand stores, 2017 .18 Table 12: Africa: Top selling luxury cars, 2017 .18 Table 13: Africa: Popular drinks for HNWIs, 2017 .20 Table 14: Africa: Items commonly found in the wardrobe of a HNWI, 2017 .21 The AfrAsia Bank Africa Wealth Report © New World Wealth Page 4 1 Introduction 1.1 What is this Report About? The report covers wealth, luxury, prime property and wealth management trends in Africa from 2007 to 2017, with projections to 2027. Table 1: Africa: HNWI wealth band definitions Wealth group Definition Billionaires Billionaires are those individuals with wealth of US$1 billion or more. Centi-millionaires Those individuals with wealth of US$100 million or more. Multi-millionaires Those individuals with wealth of US$10 million or more. Millionaires (HNWIs) Those individuals with wealth of US$1 million or more. Mass Affluent Those individuals with wealth of over US$100,000. Source: New World Wealth 1.2 Notes and definitions “Wealth” refers to the net assets of a person. It includes all their assets (property, cash, equities, business interests) less any liabilities. For the purposes of this report, a countrys wealth includes all individuals that are working or living in that country, including expats. Figures mentioned in this report are from New World Wealth unless otherwise stated. “Assets under Management” or “AuM” refers to the market value of all the funds being managed by a wealth management company on behalf of its clients. We cover 17 major African markets in this report. Certain notable markets such as Algeria, DRC and Zimbabwe are excluded due to lack of reliable source data. The AfrAsia Bank Africa Wealth Report © New World Wealth Page 5 2 Country statistics 2.1 Benchmarking Africas Wealth in Context 2.1.1 World statistics Worldwide stats (for Dec 2017): Total private wealth held worldwide amounts to approximately US$215 trillion. Around US$75 trillion (35%) of this is held by HNWIs. The average individual has net assets of US$28,400 (wealth per capita). There are approximately 15.2 million HNWIs in the world, each with net assets of US$1 million or more. There are approximately 584,000 multi-millionaires in the world, each with net assets of US$10 million or more. There are approximately 26,600 centi-millionaires in the world, each with net assets of US$100 million or more. There are 2,252 billionaires in the world, each with net assets of US$1 billion or more. 2.1.2 Africa statistics Africa stats (for Dec 2017): Total individual wealth held on the continent amounts to US$2.3 trillion. Around US$920 billion (40%) of this is held by HNWIs. The average African individual has net assets of approximately US$2,000 (wealth per capita). There are approximately 148,000 HNWIs living in Africa, each with net assets of US$1 million or more. There are approximately 7,100 multi-millionaires living in Africa, each with net assets of US$10 million or more. There are approximately 320 centi-millionaires living in Africa, each with net assets of US$100 million or more. There are 24 billionaires living in Africa, each with net assets of US$1 billion or more. The AfrAsia Bank Africa Wealth Report © New World Wealth Page 6 2.2 Wealth per capita rankings The following table ranks the 10 wealthiest countries in Africa by per capita wealth (average wealth per person). As reflected, Mauritians are the wealthiest individuals in Africa, followed by South Africans. Notably, North African countries such as Egypt and Morocco both rank high on the list despite recent instability. Note: “wealth per capita” refers to the average wealth of a person living in each country. It should be noted that most of these figures are below the global average of US$28,400. Top ranked countries such as Switzerland and Australia have wealth per capitas of over US$200,000. Table 2: Africa: Top 10 wealthiest countries in Africa by per capita wealth, 2017 Country Wealth per capita, 2017 (US$) Mauritius 32 700 South Africa 12 900 Namibia 12 600 Botswana 7 900 Angola 3 900 Egypt, Arab Rep. 3 900 Morocco 3 700 Ghana 2 500 Kenya 2 400 Cote d'Ivoire 1 900 Note: Numbers rounded to nearest 100. Figures for Dec 2017. Source: New World Wealth Interesting note: GDP per capita vs. wealth per capita measures Reasons why wealth per capita is a better measure of financial health than GDP per capita: GDP counts items multiple times (for instance, if someone is paid $100 for a product/service and they then pay someone else that $100 for another product/service, then that adds $200 to a countrys GDP even though only $100 has been produced at the start). This is why some analysts prefer using export figures or GDP generated from primary sectors as a measure of financial health. The AfrAsia Bank Africa Wealth Report © New World Wealth Page 7 GDP ignores the efficiency of the local banking sector and the local stock market at retaining wealth in a country. GDP disregards income levels in a country. In certain countries, a large portion of GDP flows to the government and therefore has little impact on private wealth creation (example: Zimbabwe, Bahrain). Wealth statistics, on the other hand, take all of these factors into account, which makes per capita wealth a far better measure of the financial health of an economy than per capita GDP. 2.3 Total wealth rankings The following table ranks the 10 wealthiest countries in Africa by total wealth held. Larger countries obviously have an advantage here due to their higher populations. Note: “Total wealth” refers to the private wealth held by all the individuals living in each country. It includes all their assets (property, cash, equities, business interests) less any liabilities. We exclude government funds from our figures. Table 3: Africa: Top 10 wealthiest countries in Africa by total wealth, 2017 Country Total wealth (US$bn), 2017 South Africa 722 Egypt, Arab Rep. 330 Nigeria 253 Morocco 122 Kenya 104 Angola 81 Ghana 63 Tanzania 60 Ethiopia 60 Cote d'Ivoire 46 Note: Figures for Dec 2017. Source: New World Wealth The AfrAsia Bank Africa Wealth Report © New World Wealth Page 8 2.4 Wealth growth trends Total wealth held in Africa has risen by 13% over the past 10 years (2007 to 2017) and by 3% over the past year (2017). Mauritius was the top performing individual market during both of these periods. Ethiopia also performed well, although it should be noted that it started from a very low base, which makes growth easier - average wealth in Ethiopia is currently at around US$700 per person which is still quite low despite recent growth. Table 4: Africa: Wealth growth by country, 2007 - 2017 Ranked by growth rate 10 year wealth growth % Mauritius 195% Ethiopia 190% Rwanda 74% Kenya 73% Tanzania 66% Uganda 53% Cote d'Ivoire 43% Ghana 39% Botswana 32% Namibia 30% Nigeria 19% Morocco 14% Angola 8% Zambia 7%