Namibians are the third wealthiest people in Africa, according to an April 2017 report by Mauritius’ AfrAsia Bank and Johannesburg-based market research firm New World Wealth.
According to the report, the average wealth of a person living in Namibia (wealth per capita) was US$10 800 in 2016, up from US$10 200 in 2015.
Mauritians were found to be the wealthiest in Africa, with US$25 700 in wealth per person. At the other end, the report found that Zimbabweans, with just US$200 per person, were the poorest in Africa.
South Africans are the second wealthiest people in Africa with an average wealth per person of US$11 300 in 2016. Botswana comes fourth at US$6 700 per person.
According to the researchers, they preferred to use wealth per capita rather than gross domestic product (GDP) per capita to determine wealth. For instance, GDP ignores the efficiency of the local banking sector and the local stock market at retaining wealth in a country.
With a population of just over two million people, the reports says Namibia is home to 3 300 millionaires. These were defined as individuals with wealth of US$1million (about N$13,2 million) or more.
Namibia also has 120 multi-millionaires. The report defines these individuals as having wealth of US$10 million or more. The report indicates that 1 400 of Namibia’s millionaires live in Windhoek, and the city is home to 60 multi-millionaires.
Namibia is classified as one of the most unequal societies in the world, with a Gini index of 61,3, and a highly skewed wealth and income distribution.
The report shows that 34% of African ‘high net worth individuals’ (HNWI) (millionaires in this regard) owned residential property in other countries at the end of 2016, and especially preferred international cities such as London, New York, Geneva, Sydney, Paris, Melbourne, Tel Aviv and Dubai.
Owning property in London, New York, Sydney, Melbourne and Tel Aviv was especially popular amongst South African millionaires. While London, Geneva and Paris properties are popular amongst Nigerian millionaires, Dubai is popular amongst Egyptian, Nigerian, Algerian and Moroccan millionaires.
A large number of African millionaires also buy homes in other African countries, most notably South Africa, the report further reveals. The majority of African millionaires buying houses in South Africa are from Angola, Ghana and Nigeria.
The Africa Wealth Report 2017 was produced by New World Wealth for Mauritian private and corporate bank AfrAsia. According to its website, New World Wealth is a “global market research group, based in Johannesburg, South Africa.