Summary
· In eastern Africa, Tanzania trails Kenya and Ethiopia , which have 7,700 and 2,700 high-net-worth individuals, respectively, according to a new report.
Arusha. Tanzania is the tenth richest country in Africa in
high-net-worth individuals (HNWIs), with 2,400 dollar millionaires.
The country trails Kenya and
Ethiopia in the eastern Africa region which have 7,700 and 2,700 millionaires
respectively.
Data from the International Monetary
Fund (IMF), show that South Africa has the largest number of richest individuals,
numbering 37,800.
It is followed by Egypt with 16,100
and Nigeria, the most populous country in Africa, which has 9,800 individuals.
"South Africa is the highest
ranking African country if measuring the number of millionaires residing
there,” a report has shown.
A high net worth individual is a
financial industry classification for people with at least $1 million in liquid
financial assets.
The liquid assets in question should
be cash or money in investments that can be converted to cash relatively easily
at any time.
High-net-worth individuals must have
at least $1 million in cash in hand and assets that can be converted to cash.
Although lists of liquid assets
often exclude stocks and bonds, high net worth individuals tend to have
investment portfolios that include the same.
In the latest classification
released on Monday, Kenya is ranked fourth followed by Morocco (5,800) and
Mauritius (4,900).
Algeria, the second largest economy
in the Maghreb region, is ranked seventh with 2,800 millionaires, ahead of
Ethiopia (2,700) and Ghana (2,600).
There are several advantages to
having many high-net-worth individuals (HNWIs) in a society.
One of them is that HNWIs can
contribute a significant amount of money to the economy through investments and
philanthropy.
Economic investing can create new
businesses and job opportunities and fund essential social programmes and
charitable organizations.
In addition, HNWIs often have a
great deal of influence in their communities and can use their wealth to drive
political change.
Despite falling in the 10th position
in dollar millionaires, Tanzania is ranked eighth in nominal gross domestic
product (GDP) in Africa for last year.
Nominal GDP is evaluated at current
market prices. Put simply, it is the total value of all goods and services produced
in a given time period less the value of those made during the production
process.
Economists say nominal GDP is one
way to measure how well the economy is doing unlike real GDP which doesn't
include changes in prices due to inflation.
Tanzania holds 2.56 percent of the
nominal GDP in Africa for 2022 ahead of Ghana which accounts for 2.54 percent
of the total shares.
The three top economic giants in the
continent - Nigeria, Egypt and South Africa - led the pack with a combined
total nominal GDP of 46.34 percent.
Algeria is fourth with 6.26 percent
followed by Morocco (4.78 percent), Kenya (4.18 percent) and Ethiopia 3.72
percent.
The rest of 46 African countries -
out of 55 - accounted for 27.78 percent, being their combined nominal GDP
against 72.22 percent held by nine countries, including Tanzania.
Tanzania is, however, not among the
ten richest countries in Africa by Gross National Income (GNI) per capita,
according to a ranking mode by the World Bank.
GNI is an economic metric that
measures the overall income brought into a country by its citizens from
anywhere in the world, (including foreign investments.
It is nearly identical to Gross
National Product (GNP) which measures the earnings of a country's citizens but
also includes overseas earnings that weren't transferred.
The richest countries in the
continent by GNI per capita in income ranking are Seychelles $14,549, Mauritius
($9,920) and Libya ($8,700).
South Africa, the continent's
economic powerhouse with the largest number of dollar millionaires, is ranked
fourth with $6,530 GNI per capita.
Other countries in the top ten are
Gabon ($6,440), Botswana ($6,430) Equatorial Guinea ($5,150), Namibia ($4,650),
Algeria ($3,660) and Eswatini $3,650.
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