Ghana records 2,900 millionaires in 2016

The High Network of Wealthy Individuals (HNWI) in Ghana is expected to grow by 80% in the next 10years reaching 5,200 individuals in 2026.

This is according to the “The Wealth Report 2017”, a global perspective report on prime property and investments put together by Knight Frank.

The report which was launched for the first time in Ghana yesterday in collaboration with Stanbic Bank Ghana a member of the Standard Bank group based in South Africa, also revealed that, Ghana currently has 2,900 wealthy individuals with each one of them having a net worth (assets) of over $1million.

The report which was put together by the world’s number one investment and property firm Knight Frank gives a good view from geopolitical shifts to luxury spending trends, bringing together the latest intelligence and the sharpest insights into the issues that matter most to the world’s wealthiest people.

According to the report, Ghana has seen 43% growth with its wealthy individuals in the last 10years, growing from 1,900 persons in 2006 to the current 2,900 recorded in 2016, but due to the fall in the prices of commodities, Ghana only saw a 7% growth in 2016 recording only 200 individuals crossing the over $1million mark.

In terms of multi-millionaires that is individuals with net assets with over $10million, Ghana as at 2016 recorded 120 individuals from the 80 it had in 2006. The Wealth Report of Knight Frank also projects that Ghana may hit 220 individuals with over $10million worth of net assets excluding the current residency.

The Knight Frank Wealth Report revealed that, wealth preservation, capital growth and succession planning are the three most important factors that, high net worth Ghanaians consider when making wealth management and investment decisions.

Currently there are 30 individuals in Ghana with over $30million net assets, but there was however no addition to the ultra-high network of wealth individuals in the country from 2015 to 2016 where there are only 4 individuals who are worth over $100 centa-millionaries.

But the report also revealed that Ghana since 2006 has not seen or produced a single billionaire.

Speaking to the B&FT at the sidelines of the launch of the report the Wealth Report Editor, Andrew Shirley said, financial services is the main industry from which the HNWI Ghanaians have acquired their wealth.

“The Financial Services sector forms the largest area where most Ghanaians have made their wealth. It is the primary sources of wealth for 24% of local HNWIs’ Other important industries for them include real estate and construction (16%), fast moving consumer goods (13%) and mining/agricultural constituting 10%.”

“So, what we have seen over the last 10years is a strong growth in terms of the wealth population in Africa. Of course, growth has been variable across African continent, as some countries have done much better than the others, we have seen the impact of lower commodities price on some countries like Nigeria where growth has been much slower and economies which is more diverse like Kenya and Ghana, we have seen much stronger growth. This is because Ghana is very stable politically, stable economy and very much a safe haven in west Africa, so the outlook for Ghana is very positive,” he added.

Commenting on the report, the Head of the Wealth and Investment at Stanbic Bank Ghana, Benjamin Mensah said, “As part of our holistic wealth management proposition, Stanbic Bank Wealth and Investment have created an association with Knight Frank throughout Africa to offer our clients access to the world property experts as we see Real Estate as a major assets class. We continue to see an evaluation of the high network of the wealthy market in recent years and in the needs of our clients. With increasing sophistication, challenging markets, growing regulatory changes, wealth management has had to evolve.”

Benjamin Mensah further noted that, “what hasn’t changed is our focus on helping clients continue to generate and preserve wealth by providing them with best of breed investment solutions. Our wealth management philosophy centers on managing, growing and protecting the generation wealth of our clients and their families.”

Across Africa the report revealed that, the HNW millennials priorities capital growth at 65%, innovative investing is also at 65%, minimising tax is 40%, ability to move wealth quickly around the world is 40%, and portfolio diversification is at 38% while globally, the HNW millennials are prioritising capital growth at 64%, innovative investing at 43%, portfolio diversification is at 39%, income return is 36% and wealth preservation is at 30% in that order.

On education, wealth managers and advisors for Ghanaians High Network Wealthy Individuals believe more clients are choosing to send their children abroad to study, constituting about 47%, compared to a 28% global average and the 47% recorded across Africa.