Author: Cyrielle Kouamou
CEO, Kouamou Capital
The migration of African millionaires, while often viewed as worrisome, presents significant opportunities that can benefit both the African continent and the global economy. High-net-worth individuals (HNWIs), defined as individuals with assets greater than $1 million, are increasingly seeking opportunities abroad. Rather than viewing this trend solely as a sign of economic distress, it can be seen as an avenue for wealth creation, innovation, and stronger international partnerships that ultimately benefit Africa.
This analysis aims to explore the key statistics behind the migration of African millionaires, why this migration is happening and the potential long-term benefits for the continent and the global economy.
Africa is home to 136 high net worth individuals (HNWIs), according to Henley & Partners’ 2023 African Wealth Report. However, the continent has seen significant outflows of its high net worth population. Between 2015 and 2022, approximately 12 thousand millionaires have emigrated from Africa, representing around 9% of the total HNWI population on the continent. South Africa, Nigeria and Egypt, Africa’s three largest economies, have been the hardest hit, accounting for a significant portion of these emigrants. South Africa alone saw over 1500 millionaires leave in 2023, followed by Nigeria with 900 and Egypt with 800.
While this trend may seem alarming, it reflects a global phenomenon. Worldwide, approximately 122 millionaires moved in 2022. This migration is not unique to Africa; it is part of a broader trend where Wealthy people are looking for better investment opportunities, more stable economies and greater personal security. African millionaires are part of this global movement, positioning themselves in international financial centres such as the United States, the United Kingdom, the United Arab Emirates (UAE) and Australia. This integration into global markets is not a loss for Africa, but a diversification of wealth that can benefit the continent in the long term.
Countries like the United Arab Emirates have become prime destinations for African millionaires due to their low tax regimes, modern infrastructure and stable economies. Dubai, for example, has seen an influx of high-net-worth Africans, with an estimated 3500 HNWIs migrating there between 2018 and 2022. This migration allows African entrepreneurs to access global capital markets and more advanced financial systems., which gives them greater opportunities to grow their wealth and businesses.
In 2023, approximately 82% of African millionaires who emigrated moved to low-tax regions. By positioning themselves in international hubs, African millionaires have access to better financial services, allowing them to diversify their portfolios and reduce exposure to economic volatility in their home countries. This movement also broadens Africa’s financial base, as many HNWIs maintain business ties and investments in their home countries.
African economies, despite their potential, face challenges such as weak infrastructure, currency volatility and limited financial services. The value of Nigeria's currency, the Naira, has fallen significantly over the past decade, and the country's inflation rate has exceeded 24% in 2023. This type of instability makes it difficult for wealthy individuals to preserve and grow their assets domestically.
By moving to countries with more stable economies and advanced financial markets, African millionaires can access better investment opportunities. For example, stock markets in the United States and the United Kingdom are much more liquid and diversified, providing African entrepreneurs with the opportunity to raise capital more efficiently. In 2022, Africa accounted for only 1% of global private equity transaction volume, according to the African Private Equity and Venture Capital Association (AVCA). By migrating, African millionaires can tap into more robust private equity and venture capital ecosystems abroad, gaining the financial support they need to expand their businesses internationally and reinvest in Africa.
African millionaires are not only taking their wealth abroad, but also gain valuable knowledge, skills and networks that they can bring back to the continent. For example, many tech entrepreneurs from Nigeria and Kenya have relocated to Silicon Valley, where they are exposed to cutting-edge technologies, innovative business models and global networks. These individuals often return to Africa to apply what they have learned, helping local startups and businesses thrive.
In 2022, the African tech ecosystem attracted $6.5 billion in venture capital funding, largely driven by diaspora investors, many of whom are African millionaires living abroad. According to Disrupt Africa, 68% of funding raised by African startups in 2022 came from international investors, highlighting the vital role of the diaspora in connecting Africa to global capital.
Nigerian entrepreneur Iyinoluwa Aboyeji, co-founder of Flutterwave, a fintech unicorn that facilitates cross-border payments across Africa, is one example. Its influence in Nigeria and North America illustrates how emigrant millionaires can contribute to entrepreneurial ecosystems in multiple regions.
Moving to wealthier countries also allows African millionaires to engage in global philanthropy and development initiatives. Many wealthy Africans have used their international presence to support charitable causes at home. For example, in 2022, African philanthropists donated more than $3 billion to causes such as education, healthcare, and infrastructure development across the continent.
By being part of global charitable ecosystems, African millionaires can raise larger funds, draw international attention to African issues, and channel resources back to their home countries. La Mo Ibrahim Foundation and Dangote Foundation are prime examples of Africa's wealthy elite using their global status to drive development on the continent.
One of the most important benefits of millionaire migration is the increase in capital mobility. African millionaires, even after moving, continue to invest heavily in their home countries. In 2022, remittances to sub-Saharan Africa have reached $53 billion, a substantial portion of which came from wealthy people living abroad. This financial influx is crucial to support development projects, real estate and small businesses, particularly in countries like Nigeria, Kenya and Ethiopia, which rely heavily on diaspora funding.
In addition, African millionaires living abroad play a key role in foreign direct investment (FDI). In 2022, FDI inflows into Africa increased by 6% to $46 billion, according to the United Nations Conference on Trade and Development (UNCTAD). Many of these investments are facilitated by African entrepreneurs and investors who have relocated abroad but continue to maintain strong business ties with their home countries.
The diaspora acts as a bridge between African entrepreneurs and international markets. Migrating African millionaires are often the drivers of innovation in industries such as fintech, e-commerce, and renewable energy. For example, Nigerian entrepreneurs have played a leading role in the rise of Africa’s fintech sector, which has raised more than $2 billion in venture capital funding in 2022, according to Briter Bridges.
These entrepreneurs often use their global connections to bring foreign investors into African markets. The ability to operate internationally allows them to scale their businesses, create jobs and contribute to economic growth at home.
When African millionaires diversify their wealth by investing globally, they help reduce economic risks to their home countries. In countries with fragile economies, having some wealth held overseas mitigates the impact of domestic economic downturns or political instability. In 2023, South Africa faced slow economic growth and high unemployment rates, with the South African Rand depreciating by 7.5%. Relocating wealthier people overseas prevents a sudden exodus of capital during crises, which can destabilize local economies.
African millionaires with exposure to international markets are often strong advocates for better governance, transparency, and business practices in their home countries. Their influence can lead to reforms that improve the ease of doing business, reduce corruption, and foster a more stable investment climate. Countries like Rwanda, which have benefited from the diaspora’s reform engagement, have seen improvements in governance and economic development as a result.
The migration of African millionaires helps build stronger economic and diplomatic ties between Africa and the rest of the world. African entrepreneurs who move abroad serve as ambassadors for African business opportunities. This can attract foreign direct investment, encourage business partnerships, and boost global interest in growing African markets. For example, the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services across 54 African countries, can benefit from the networks and investments of African millionaires living abroad.
Although the migration of African millionaires has often been viewed negatively, it presents many opportunities for Africa’s future. These individuals are not just taking wealth from Africa; they are creating a more globally integrated continent by building international networks, fostering entrepreneurship, and reinvesting capital in Africa.
With $53 billion in annual remittances and billions more in venture capital funding and foreign direct investment, Africa’s millionaire diaspora is a powerful engine of economic development. By embracing the potential of this global migration, Africa can harness the power of its wealthy elite to foster innovation, build international partnerships, and drive long-term growth.
1. Henley & Partners. (2023). Africa Wealth Report 2023.
2. New World Wealth. (2022). Global Wealth Migration Review 2022.
3. African Private Equity and Venture Capital Association (AVCA). (2022). 2022 Annual African Private Equity Data Tracker.
4. Disrupt Africa. (2022). African Tech Startups Funding Report 2022.
5. Wealth-X. (2022). Global Philanthropy Report 2022.
6. United Nations Conference on Trade and Development (UNCTAD). (2022). World Investment Report 2022.
ARTICLES AND ANALYZES
This website uses cookies. By continuing to use this site, you accept our use of cookies. learn more
