Nairobi has been ranked the fourth richest city in Africa with 4,400-dollar millionaires and 10-dollar Centi millionaires in the latest Henley and Partners 2024 Africa Wealth Report.
According to the report, between 2013 and 2023, the number of millionaires in Nairobi grew by 25 percent.
South Africa’s city Johannesburg was ranked the riches African city with 12,300-dollar millionaires 25-dollar Centi millionaires (above 100 million) and two billionaires.
Cape Town came in second with 7,400-dollar millionaires 28-dollar Centi millionaires and one billionaire, while Cairo, the capital of Egypt ranked third with 7,200-dollar millionaires 30-dollar Centi millionaires and 4 billionaires.
The report added that Nairobi accounts for a high 48 percent of Kenya’s total wealth and over 60 percent of the country’s millionaires.
“Nairobi is home to some of Africa’s oldest and most well-established luxury residential neighborhoods, including Karen and Muthaiga.
“It accounts for a high 48% of Kenya’s total wealth and over 60% of the country’s millionaires. Unlike other cities near the equator, Nairobi is known for its mild and temperate climate,” the report stated.
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Kenya’s Ranking in Africa Same as Nairobi
Kenya ranked fourth on the list with a total of 7,200-dollar millionaires and 16-dollar Centi millionaires following a 30 percent increase in the number of millionaires since 2013.
South Africa topped the list, followed by Egypt and Nigeria with 37,400 15,600- and 8,200-dollar millionaires respectively.
Morocco came in the fifth position with 6,800-dollar millionaires, 32-dollar Centi millionaires and four billionaires.
In addition, the report detailed that Africa’s top 10 wealthy countries have total of 135,200-dollar millionaires, 342-dollar Centi millionaires and 21 billionaires.
Key Driver of Wealth in Africa
The Henley and Partners report explained that the migration of millionaires accelerates the growth of wealth in a country.
There are 54 African born billionaires in the world, but only 21 of them still live on the continent. This is a significant concern according to the report because billionaires are often entrepreneurs and company founders, who have the ability to create large numbers of jobs in their host country.
“With the exception of Mauritius, African nations consistently lose large numbers of high-net-worth individuals annually due to emigration. This prevents them from reaching their full potential as much of their hard-earned wealth growth is eroded,” stated the report.
Other reasons listed include the safety levels in a country and the efficiency of local police, growth in key sectors including hi-tech, manufacturing, mining, and tourism.
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“Concerningly, African nations often rank among the most dangerous countries on earth, especially when it comes to key metrics such as murder rates, women’s safety, and child safety.”
“Most African countries perform poorly when it comes to hi-tech and manufacturing, and are instead heavily reliant on mining, agriculture, and tourism to bring in forex.”
Furthermore, competitive tax rates, a well-developed banking system and stock market, Media freedom and Strong ownership rights were listed among the factors for accelerating growth in wealth.
“A well-developed banking system and stock market: an efficient banking sector and stock market encourages individuals to invest and grow their wealth locally. South Africa is successful in this regard as it is home to one of the world’s top 20 stock exchanges.”
