Where in Africa is wealth growing the fastest?

By Martin Camara

South Africa, Egypt, Morocco, and Nigeria boast large-scale manufacturing bases, including efficient automotive industries. Along with Algeria, these countries form a powerful economic bloc. Egypt leads, followed by Nigeria, South Africa, Morocco, and Algeria, together encompassing a market of 219 million consumers with the capacity to purchase premium products before the pandemic. In 2023, these nations had a combined gross domestic product (GDP) of over US$1.6 trillion.

According to the UNCTAD World Investment Report 2023, published on July 5, Egypt saw its foreign direct investment (FDI) more than double to US$11 billion in 2022, driven by increased cross-border mergers and acquisitions (M&A). Africa is home to an estimated 23 billionaires, eight of whom reside in Egypt.

Africa has at least 345 companies with revenues of US$1 billion or more, collectively generating over US$1 trillion, with roughly 40 percent headquartered in South Africa. In 2022, South Africa received US$9 billion in FDI, significantly lower than in 2021 but still double the decade’s average.

Cross-border M&A sales in SA soared to US$4.8 billion from US$280 million in 2021. South Africa remains a significant wealth hub in Africa, with a strong luxury real estate market and extensive wealth management services. It ranks second on the continent in per capita wealth.

With a population now exceeding 1.4 billion, Africa’s remarkable growth is transforming the global landscape. This surge is propelled by powerhouse countries like Nigeria, where Lagos, a bustling city, could emerge as the world’s top megacity this century. In 2017, Lagos’ GDP exceeded US$136 billion, contributing to one-third of Nigeria’s national GDP, equivalent to the combined GDP of Côte d’Ivoire, Cameroon, Gabon, and Senegal.

Lagos is home to one of Africa’s largest and busiest seaports (Apapa), along with 4 billionaires, 360 multimillionaires, and 6,800 millionaires in US dollars. The city is a major economic hub with significant wealth, beach resorts, tourism, a thriving music and film industry, and a robust oil and petroleum sector, amassing over US$120 billion in African fortunes. Predictions indicate a 90 percent growth in the number of high-net-worth individuals (HNWIs) across the continent by 2024, with Nigeria, Africa’s largest economy, leading this rise.

Morocco is “well-positioned” to become a leader in aerospace manufacturing, maintenance, and operations, according to a new report from Forbes magazine. The American magazine highlights Morocco’s burgeoning aerospace industry, which focuses on aircraft maintenance services. The North African nation has invested heavily in aerospace infrastructure, workforce development, and global partnerships, positioning itself as a hub for aviation activities.

As countries become less dependent on extractive industries, business conditions across Africa continue to improve. These positive trends, combined with the continent’s favorable demographics, suggest a bright economic future for Africa.

Martin Camara is Director General of the Global Council for the promotion of International trade.