Over the next decade Africa’s number of ultra-high-net-worth individuals (UHNWI) will grow by 33%, after suffering a decline of 2% in 2015-16 due to tough market conditions.

The 2017 edition of The Wealth Report launched in Africa by Knight Frank and Standard Bank Wealth and Investment shows that the growth in ultra-wealthy populations in Africa will outpace that of Europe and North America.

Andrew Amoils, Head of Research at New World Wealth, said that of the 20 countries whose ultra-wealthy populations have grown most rapidly over the last decade, 11 are in Africa. 

Hotspots for growth include Ghana, Mauritius, Ethiopia, Tanzania, Uganda, Kenya, and Rwanda. 

In pole position sits Mauritius which, with its reputation as a relatively safe, business-friendly country with lower tax rates than many countries in Africa, is expected to remain a popular retirement hotspot for the wealthy.

“The country will also be bolstered by its strengthening local financial services, with a forecast 130% rise in its UHNWI population over the next decade,” Amoils said.

While the total UHNWI population in these African countries is starting from a relatively low base, wealth is expected to increase all the way up the chain, with 7,500 new millionaires set to be created over the next decade in Kenya alone. 

New World Wealth does not forecast any growth in the ultra-wealthy population in Nigeria over the coming decade. 

This follows on from a 20% decline last year alone due to economic and political tensions in the country.

The survey also shows that the majority of investors still feel under-invested in property and are looking to rebalance overall portfolios.

Respondents’ preferred locations varied considerably depending on their domicile, with Australia, Africa and the US all cited as investment targets for 2017.

Deon de Klerk, Head of Wealth: Africa Regions for Standard Bank, said it is increasingly important that individuals’ goals, requirements, time horizons, lifestyles and tolerance for risk are well understood and managed early.

Preservation of capital and generational wealth transfer considerations remain critical to an effective overall wealth strategy.

“There is little doubt that uncertainty prevails and wealthy investors are becoming increasingly concerned about their short-term wealth prospects. However, it is important not to panic and to rely on a goals-driven approach to successfully navigate the environment,” said de Klerk.

The total number of global ultra-wealthy - those with $30m or more in net assets – rose by 6,340 in 2016, taking the total to 193,490, according to the report. 

Countries offering fiscal and political stability, as well as excellent quality of life, are expected to see strong growth over the next decade.

“It is imperative for countries in Africa to position themselves for attracting new business and investment to boost economic growth and improve financial inclusion,” said de Klerk.

Therefore, while the ultra-wealthy in Africa only grew by 13% between 2006 and 2016, growth could be more than double that rate over the next decade as policy and regulatory frameworks make countries more conducive for doing business and creating prosperity,” he added.

Standard Bank Wealth and Investment is an advice led business with more than $12bn in assets under management worldwide.