As the number of newly minted millionaires in Africa continues to rise, overwhelming poverty across the continent remains a pressing issue.
The most recent report from the research firm New World Wealth has released new statistics regarding the concentration of wealth across Africa.
According to the report, there are a total of 163,000 millionaires in Africa with a combined wealth of $670 billion. That’s higher than the GDP of Kenya and Nigeria, two of Africa’s largest economies, combined.
Most of Africa’s new millionaires are coming out of South African cities like Johannesburg and Capetown, which host 527 and 238 millionaires per 100,000 people, respectively.
One could assume that these new millionaires are a testament to Africa’s growth generating increased wealth, but the reality is much starker.
According to new World Bank data, GDP growth in Africa this year is forecasted to be 4.4% while per capita growth is expected to be only 1.7%.
“More people are likely living on less than $1.25 a day in Sub-Saharan Africa today than at the turn of the millennium—an estimated 413 million in 2010 compared with 376 million in 1999,” the World Bank report states. In addition, one out of every two Africans is currently living in poverty.
As far as who’s actually becoming a millionaire in Africa as poverty continues to be a crisis, it’s mostly those involved in politics, upper ranking government employees and those who were already well-off to begin with.
“It’s generally middle-class people becoming millionaires,” New World Wealth research head Andrew Amoils told Quartz.com. He stated that it’s “Difficult for poor people in Africa to become rich as schooling and healthcare are much better for wealthy people.”
– Alexander Jones