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Research findings overview
12 August 2020
Page 2
A surprising and dynamic continent where
challenges are met with creativity
“Africa is seldom thought of as a place where wealth is created. In many
global wealth studies, Africa is conspicuously absent from the analysis.
When African wealth is discussed, it is often linked to the continent’s
governance problems, with wealth accumulation cast as rent extraction
rather than value creation.”
- Dr Stuart Theobald, CFA and Dr Graunt Kruger, study leads
Page 3
Presentation overview
1. Background on methodology and key features of respondents
2. Findings: How wealth is created
3. Findings: How wealth is invested
4. Findings: Lifestyles and how wealth is spent
5. Findings: How wealth is bequeathed
Page 4
For this study, 265 high-net worth Africans completed a comprehensive survey, of which 75 conducted a further in-depth interview.
Where they were from:(number of survey respondents per country)
56
65
5652
36
Nigeria South Africa Kenya Ghana Mauritius
0
10
20
30
40
50
60
70
The five countries covered in this study collectively account for the majority of GDP in Sub-Saharan Africa ($1,01-trillion, 58% of SSA GDP)
They account for a combined population of 327m, or 31% of the population of Sub-Saharan Africa
Key features of respondents Background
Page 5
Key features of respondentsHow old they were: (number of survey respondents in each age bucket)
1
4
26
19
6
0 0
7
28
30
0
7
27
18
4
0
8
26
14
4
01
1413
8
18-25 26-35 36-50 51-64 65+
0
5
10
15
20
25
30
35
Nigeria
South Africa
Kenya
Ghana
Mauritius
Background
Page 6
Key features of respondents
How much they were worth: (number of survey respondents in each wealth bucket)
41
10
3 2
45
16
2 2
26
4
8
18
40
4 4 3
24
8
3
0
$1m-$2m $5m-$20m $20m-$100m $100m+
0
5
10
15
20
25
30
35
40
45
50
Nigeria
South Africa
Kenya
Ghana
Mauritius
Background
Page 7
From a wide variety of industriesRanking of respondents’ industries per country. Respondents could choose more than one.
Background
Page 8
Headline finding: African wealth is driven by
entrepreneurship
Particularly in less developed markets, most respondents had made their money from entrepreneurship.
Ghana Kenya Nigeria Mauritius South Africa
Findings: Creation
Page 9
Entrepreneurs work in various industriesTop four industries of entrepreneurs, per country
3
3
5
6
Construction
Food & beverage
Manufacturing
Real estate
2
2
2
3
5
Technology
Media
Mining
Real estate
Financial services
8
12
13
19
Trade
Construction
Oil & gas
Real estate
6
10
12
16
Manufacturing
Trade
Construction
Real estate
8
9
9
16
Construction
Retail
Real estate
Trade
GhanaKenya
Nigeria Mauritius South Africa
BUILDFindings: Creation
Page 10
The Side Hustle
Often, entrepreneurship is a side activity of respondents who have executive careers. That was particularly true in Nigeria, Ghana and Kenya.
19% 7% 25% 10% 16%64% 43% 19% 50% 10%
Nigeria Ghana Mauritius Kenya South Africa
0%
10%
20%
30%
40%
50%
60%
70%
Entrepreneurs who are also executives Executives who are also entrepreneurs
BUILDFindings: Creation
Page 11
Factors for Success
Respondents were asked to rank five factors from first to last in terms of importance in their success. Ranks were then scored out of 5 and averaged for each country, as shown in the spider diagram here. “Idea” consistently ranked top, while “funding” was often lowest.
1
2
3
4
Timing
Team
IdeaBusiness model
Funding
Ghana
Kenya
Mauritius
Nigeria
South Africa
BUILDFindings: Creation
Page 12
Respondents change how
they accumulate wealth
How did you get to your first $1m ? How have you generated wealth
since?
Survey respondents had different approaches to wealth creation early in their careers compared to later. Here are the numbers in each category for their first million and subsequent wealth
Page 13
How Africans hold
their wealth
Property is important across the continent, while equities account for more of respondents’ assets in South Africa
4%
10%
9%
18%
51%
3%
5%
4%
9%
6%
20%
16%
17%
21%
11%
7%
7%
9%
4%
6%
38%
23%
26%
29%
18%
4%
6%
5%
4%
2%
25%
33%
30%
14%
5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Kenya
Nigeria
Ghana
Mauritius
South Africa
Stocks or equities Bonds and other debt instruments Cash or bank deposits
Alternative investment vehicles Tangible assets Lifestyle assets
Investments in own business
Findings: Preservation
Page 14
Fears about wealth
The political environment is the primary concern related to wealth preservation among respondents with nearly two-thirds listing it as a worry
79%
45%41%
30%
36%
20%
54%
21%
64%
58%
38%
21%
46%
13%
29%
37%
10%
67%
61%
38%
18%
39%36%
11%13%
25%
55%
48%
37%
68%
32%
60%
23%
46%
11%
82%
36%
17%
11%
42%
17%14%
36%
8%
31%
Personal security and
safety
Succession and
inheritance issues
Stock market volatility Personal and family
health
Tax on the wealthy Online security and
privacy
Global economic
changes
Compliance issues Political environment
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Nigeria Ghana Kenya South Africa Mauritius
Note: numbers indicate % of total respondents who selected option. More than one option could be selected. Question: What concerns, if any, do you have when it comes to preserving wealth?
Findings: Preservation
Page 15
Entrepreneurs vs Professionals
Across Africa, entrepreneurs have more of their wealth tied into their own business, while professionals diversify into stocks and equities
14%
5%
16%
7%
26%
4%
27%
24%
7%
17%
8%
26%
4%
14%
Stocks or equities
Bonds and other debt instruments
Cash or bank deposits
Alternative investment vehicles (private
equity, venture capital, hedge funds)
Tangible assets (property, primary and
secondary residences, etc.)
Lifestyle assets (cars, collectables, art,
wine)
Investments in my own business(es)
Executives/professionals
Entrepreneurs
Findings: Preservation
Page 16
Young vs OldYounger respondents were less concerned about the political environment but more worried about their personal security and safety than the older generation. They were also less bothered by stock market volatility and global economic changes.
Findings: Preservation
Page 17
Tangible AssetsMost respondents already own residential property, and second homes in all countries except South Africa. Most Kenyans and Nigerians also own farmland. Nigerians have the widest property interests.
.
Ghana Nigeria Mauritius South Africa Kenya
96%
80%
54%
24%
35%
31%
4%
18%
40%
57%
40%
63%
0%
2%
6%
18%
25%
6%
Residential property: primary home
Residential property: secondary
home/s
Residential real estate (rental or
investment)
Commercial real estate
Farmland
Foreign property
98%
86%
75%
56%
57%
43%
2%
14%
25%
44%
28%
51%
0%
0%
0%
0%
15%
6%
97%
79%
58%
41%
26%
41%
0%
6%
33%
10%
22%
22%
3%
15%
9%
48%
52%
37%
98%
53%
40%
21%
4%
18%
0%
9%
12%
25%
16%
39%
2%
38%
48%
54%
80%
43%
92%
70%
76%
49%
78%
21%
8%
28%
24%
47%
13%
52%
0%
2%
0%
4%
9%
27%
Findings: Preservation
No interest
Interested in
Currently own
Page 18
Work Time
Typically, how many hours respondents spend working per week
10%
11%
12%
21%
13%
19%
11%
12%
48%
52%
47%
52%
20%
19%
30%
19%
32%
9%
Ghana
Kenya
Mauritius
Nigeria
South Africa
0% 20% 40% 60% 80% 100%
Less than 20 hours
20 to 40 hours
40 to 60 hours
More than 60 hours
Findings: Lifestyle
Page 19
Spending TimeRespondents spent their time on many activities and were largely consistent in how they did so…
.Family Hobbies
20%
15%
6%
9%
4%
73%
69%
79%
76%
48%
6%
17%
12%
9%
27%
2%
0%
3%
5%
21%
0% 20% 40% 60% 80% 100%
10%
5%
11%
5%
11%
21%
13%
19%
11%
23%
48%
52%
47%
52%
65%
Ghana
Kenya
Mauritius
Nigeria
South Africa
0% 20% 40% 60% 80% 100%
None
Up to 5 hours
Up to 10 hours
More than 10 hours
Findings: Lifestyle
Page 20
Spending Time…the one exception being “restorative time” which was more of a preoccupation outside South African and Mauritius
.
34%
31%
17%
16%
8%
60%
56%
51%
67%
54%
6%
11%
29%
15%
27%
0%
2%
3%
2%
10%
Ghana
Kenya
Mauritius
Nigeria
South Africa
0% 20% 40% 60% 80% 100%
None
Up to 5 hours
Up to 10 hours
More than 10 hours
Sport Restorative time (prayer, meditation, yoga)
10%
8%
27%
0%
39%
45%
55%
67%
71%
56%
27%
21%
7%
18%
5%
18%
17%
0%
11%
0%
0% 20% 40% 60% 80% 100%
Findings: Lifestyle
Page 21
HobbiesAfricans are rather consistent in their favourite pastimes
.
Findings: Lifestyle
Page 22
A time for givingRespondents generally considered it important to leave wealth to heirs
Ghana Kenya Mauritius Nigeria South Africa
0%
10%
20%
30%
40%
50%
60%
70%
80%
Extremely important
Very important
Important
Somewhat important
Not at all important
Findings: Bequeathing
Page 23
Family is the focus
of bequeaths Family ranks highest for the proportion of respondents’ estates. Nigeria has the highest allocated to charity, at 18%
How respondents from different countries plan to split their estates between family, charity and other beneficiaries
Findings: Bequeathing
Page 24
Giving backRespondents indicated many ways they contributed back to society. The diagram here shows the percent of respondents who indicated they give back in the ways indicated.
54%
64%
58%
68%
86%
31%
57%
58%
32%
35%
79%
68%
47%
68%
15%
Ghana
Kenya
Mauritius
Nigeria
South Africa
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Give financially to nonprofit organisations
Have my own or family foundation or charity
Volunteer time, skills and services to
nonprofits
Give to university or school endowments
Serve on the board of a nonprofit
organisation or foundation
Work for a nonprofit organisation
Own a company creating jobs and
opportunities for others
Invest in companies that support positive
social, environmental policies and practices
Social entrepreneurship: own a company to
address social or environmental solutions
I don't currently undertake any philanthropic
activities
Findings: Bequeathing
