Currency depreciation triggers millionaires’ flights from Africa

Nearly 20,000 millionaires fled Africa in the past decade due to currency depreciations that eroded their wealth, according to Henley and Partners, a global citizenship and residence consultancy.

The number of individuals with a wealth of $1 million in Africa dropped 8% to 135,200, while the number of billionaires was limited to 21 with a combined wealth of $2.5 trillion, the consultancy said in a report dubbed Africa’s Wealth Landscape: Navigating Challenges, Seizing Opportunities.

The consultancy notes that the number of millionaires could still grow by 65% in the next decade, thrust by growth in fintech, tourism, and rare metals, but depreciation is pushing an increasing number of them to relocate their wealth.

“Currency depreciation and underperforming stock markets have chipped away at Africa’s wealth compared to global benchmarks,” Henley and Partners said.

South Africa, which has the highest number of African millionaires, saw its currency fall 43% against the US dollar from 2013 to 2023.

Currencies in most other African countries also performed poorly compared to the USD over the past 10 years, with dramatic depreciations of over 75% recorded in Nigeria, Egypt, Angola, and Zambia.