As far back as we can remember, there have always been those who were extremely rich and those who were extremely poor. The only difference is that at some point back in time, there was no middle class, but now, the middle class seems to be at the centre of every sound economic policy.
Think of Victorian times and the aristocratic nature of the English Society back then, the rich were very rich and the poor very poor. Think of the ancient Roman Empire: Marcus Crassus, whose wealth was calculated as being roughly equal to the empire's total government treasury, had an annual return on his wealth equal to the annual income of 32000 Roman citizens combined. In more recent times (right now), think of Carlos Slim who is responsible for the sustainability of more than 400,000 Mexicans.
The truth is that the number of Super rich has grown exponentially during the last century, both in the West, but particularly in the East. The growth of the super rich in the East, particularly Russia, India and China has been exponential. Take for example a country like Russia; it's most popular city Moscow holds the record for the city with the most number of billionaires (79) and their wealth keeps growing.
Ever tasted a £32 hamburger, or slept in a £7500 a month flat? If not, then you probably haven't visited Luanda, Angola; the most expensive city in the world and also home to Isabel Dos Santos. With a net worth of oner $1 billion, she is the richest woman in Africa and daughter of the president of one of Africa's largest oil exporters...yes you guessed right Angola. I don't kno about you, but I'm not surprised. Luanda hosts some of the world's most influential people, especially those in the oil and tech sectors, as the come to take advantage of Angola's massive oil resources.
Victora Island, Lagos Nigeria...if you were blindfolded and dropped there, you'ld think you were in the South of France. Well planned streets, luxury apartment buildings, expensive sports cars...no absence of Rolls Royce's and at the watershores, luxury yachts; all belonging to Nigeria's elite. Just a few kilometers inland, Ermenelgildo Zegna, one of the world's most prominent luxury designer goods brand just came in and set up shop. Their suits retail from $2000 - $2800 at least. And why are they here? Because they know that the Niherian elite has the money, loves to spend, and loves to be seen spending.
Just down the road, there's a Porsche dealership, and Rolls Royce is coming soon. Go to any major airport around the world, especiall in London, which has beome the 'playground for Nigeria's rich', and you'll notice that the best-dressed men are Nigerians, in their expensive designer clothes and shoes. On one side of the Lagos waters you find the luxury boats of the rich and affluent...
And on the other side of the Lagos waters...
Another country that has also seen a rapid surge in the number of ultra rich people is South Africa.
Sandton, Johannesburg; one of Africa's most prestigious shopping centers, and home to some of the richest people in South Africa (mostly white), and with some of the highest property values in the country. Paid domestic staff, designer clothes and sports cars are the order of the day. Women with designer shades, covering the faces heavy laden with Botox, carrying bags of designer clothes they just bought from one of the lusury shpos down the road. Their next stop, coffee at one of the exclusive cafés on Nelson Mandela Square. That's the life of SA's rich
Of the 50 Richest People in Africa, 14 individulas hail from South Africa and 10 from Nigeria, as of 2013. There were 55 world class billionaires in Africa as of January 2014, a 2250% increase from 2003 when Forbes counted only 2 billionaires. The growth has not only been at the level of billionaires. The number of mutli-millionaires, or ultra-rich (defined by Wealth-X as individuals with a networth of $30 mn and above after accounting for shares in public and private companies, residential and investment property, art collections, aeroplanes, cash and other assets) increased 5.1% in 2012 to 2535 individuals with a combined wealth of $539 bn.
A 2012 Wealth-X report claimed that the rise in the number of Africa's ultra-wealthy was mainly driven by South Africa's growing rich population, which is in turn deiven by the growth in the trade in resources such as mining activities and gold. Here's a list of the countries with the highest number of ultra-rich people in Africa.
Nigeria also has seen a surge in the number of ultra-rich mainly due to it's oil sector, but also because of the astoniushing in sectors such as banking, telecommunications, real estate and manufacturing. Northern African countries too, despite the push-back of the Arab Spring have for the most part experienced a rise in domestic consuption due to increases in oil prices and more inclusive and distributive policies.
The entire African continent has seen a rapid increase in the living standards of individuals, which is reflected (slightly) in an increase in per captia GDP, and hence a greater purchasing power. This means that the demand for many goods and services has increased, thereby enriching the people who provide these services.
Also, the increase in trade with China, which is largely seen as being on more favourable terms has lifted so many people up. China is now the single largest trading partner of Africa. Let's not also forget that the increase in transparency, which is relected in increased democracy in Africa has given opportunities to many more people.
Here's the number of ultra-rich people in the top 5 countries in Africa by number of ultra-rich.
1. South Africa - 785 Combined wealth $100bn
2. Egypt - 490 Combined wealth $65bn
3. Nigeria - 450 Combined wealth $60bn
4. Kenya - 130 Combined wealth $16bn
5. Tanzania - 105 Combined wealth $14bn
FIGURES FROM A 2012 SURVEY.
At the same time, the number of millionaires in Africa has greatly increased.
Here's a list of the African countries with the most number of millionaires (defined as individuals with a networth of at least $1 million excluding the value of primary residence).
1. South Africa - 48,800
2. Egypt - 23,000
3. Nigeria - 15,900
4. Kenya - 8,400
5. Angola - 6,400
6. Tunisia - 6,500
7. Lybia - 6,400
8. Tanzania - 5,700
9. Morocco - 4,900
10. Algeria - 4,100
All this growing wealth despite the fact that 48% of Africans still live below the poverty line (less than $1.25 a day).
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