Business
Africa has become the fastest growth region for private banking
The private banking unit of South Africa-based Investec holds Africa’s largest portfolio of assets under management with US$23.7 billion, reflecting increased demand for services from the affluent segment of the continent’s population.
Africa has over 160,000 high net worth individuals (HNWI) who collectively hold around US$660 billion in wealth. Approximately US$120 billion is tied up with wealth management companies, according to New World Wealth.
“Africa is the fastest growth region for private banking globally,” said Andrew Amoils, senior analyst at the New World Wealth. “We estimate the African private banking market will grow by 8 percent per annum over the next 10 years.”
According to a benchmark report from CapGemini, the high net worth individuals population in Africa grew 9.9 percemt compared to 9.2 percent globally while high net worth individual wealth in the region increased by 11.5 percent compared the global average of 10 percent.
South Africa continues to be the hub for African private banking with over US$50 billion in assets under management. As African economies prosper, new hubs of growth are emerging with Angola, Kenya, Nigeria and Tanzania seen as promising markets for the private banking industry.
Nigeria’s Potential: Nowhere is the growth more evident than in Nigeria where the country’s new-found status as the continent’s largest economy is attracting financiers.
According to WealthInsight, Nigeria is home to around 16,680 high net worth individuals, a figure that is forecast to rise by 7 percent to reach around 18,401 by 2018.
