By Ottoabasi Abasiekong, WebTV
Last week, Knight Frank released the 2018 Wealth Report which revealed that the number of ultra-high net-worth individuals in Nigeria, worth US$5m increased by six percent (6) between 2016 and 2017. This revealed a significant increase from 3,950 individuals in 2016 to 3,730 individuals in 2017.
For those in the US$50m wealth category; the report revealed a five percent (5%) decrease between 2016 and 2017, a decline from 210 individuals in 2016 to 200 individuals in 2017.
Looking at the US$500m net-worth level individuals, the report indicated that there was no significant change in terms of percentage and absolute figure of the twenty (20) individuals in 2016 and 2017.
In the overall wealth distribution analysis according to continental segmentation, high net-worth individuals in Africa with above USD$50m had a total value of $245bn; while wealthy Africans with above US$5m increased from 21,460 individuals to 22,970 individuals (a seven percent surge).
For the above US$50m group of wealthy individuals in Africa, the report recorded an increase from 1,110 individuals in 2016 to 1,190 individuals in 2017 ( a seven percent change).
Consistent with the previous assessment for the over US$500m net-worth group, there was no change in the figure as it remained at the same 2016 levels of eighty (80) individuals.
The Wealth Report Attitudes’ Survey attracted responses from over five hundred (500) of the world’s leading private bankers and wealth advisers, who between them; represented around fifty thousand (50,000) wealthy individuals with a combined wealth of more than US$3trillion.
In the financial market and commodities analysis, the exposure/portfolio preference of the wealthy Africans are outlined as follows:
1. Property (12%),
2. Equities (26%),
3. Private Equity (12%),
4. Alternative Investments (9%),
5. Cash (26%),
6. Cryptocurrencies (24%),
7. Gold (3%), and
8. Bonds (15%).
On likely changes to the wealth of Africans in the report; 76% of respondents in the attitudes’ survey expect a likely increase; 16% expect no change at all while 8% anticipate a decrease.
Looking at the factors that could contribute to the increase/decrease of the wealth of individuals, the key factors identified by the survey-based report include:
1. performance of own business (38%),
2. global economic conditions (22%),
3. local economic conditions (49%),
4. performance of property investments (32%),
5. performance of non-property investments (22%),
6. local political conditions (51%),
7. global political conditions (5%) and
8. tax changes (0%).