East Africa is getting richer - CNBC Africa

East Africa is getting richer

East Africa

by Aviwe Mtila 0

The list, which ranked the countries by average wealth per person, showed steadfast growth from East Africa. Photo: Wikimedia.

With 21,700 dollars in wealth per person, Mauritians are the wealthiest individuals in Africa, whilst people in Zimbabwe are the poorest with 200 dollars per person. This is according to the 2016 Africa Wealth Report, which sees Kenya, Tanzania and Uganda among the top 16 richest African countries.

The list, which ranked the countries by average wealth per person, showed steadfast growth from East Africa. Speaking to CNBC Africa, Andrew Amolis, Head of Research at New World Wealth, unpacked the latest rankings and went into detail on how the countries are ranked.

READ THE HIGHLIGHTS FROM THE CONVERSATION BELOW OR WATCH THE VIDEO:

“We look at average wealth because it’s kind of more relevant to look at what the average person in the country is worth as opposed to what the total wealth in the country is. Some countries have such big populations and that’s the only reason they have a lot of wealth because they have so many people.”

-          Andrew Amolis, Head of Research at New World Wealth.

“East Africa has definitely seen growth, particularly over the last few years it’s seen much better growth than the rest of Africa. I think a lot of people were expecting the growth to come from West Africa but over the last couple of years the commodity prices and regional problems have damaged those economies quite badly, so a lot of people are looking to East Africa for the growth.”

-          Andrew Amolis, Head of Research at New World Wealth.

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“South Africa is obviously still the big economy from a wealth point of view. Mauritius and near places like Namibia and Botswana, leverage off South Africa to a degree, but there quite a lot of wealthy people as well in those countries.”

-          Andrew Amolis, Head of Research at New World Wealth.

“Places like Nigeria, Morocco and Egypt, their average wealth is higher than places, for instance, in East Africa. That’s mainly because they have some very wealthy people in those countries. But of course they’re leaving all the time, so they’ve got a lot of issues in those North African countries with wealthy people leaving. Egypt has lost about 50 per cent of its wealthy people from migration in the last three of four years alone.”

-          Andrew Amolis, Head of Research at New World Wealth.

“It’s difficult to stop migration. There are a few things that people try and do but at the end of the day wealthy people are the most mobile population because they have the option of leaving. So when wealthy people leave a place it tends to be a bad sign because the average person wouldn’t be able to leave because they’re financial prisoners.”

-          Andrew Amolis, Head of Research at New World Wealth.

“In terms of ownership rights, that’s the most important thing for wealth creation, having ownership rights. Zimbabwe made that mistake with liberalising the ownership rights and as a result, people weren’t really willing to buy anything or invest.”

Andrew Amolis, Head of Research at New World Wealth.

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