Why Rwanda is a key market for future millionaires

Daniel Amateye Anim, a Ghanaian economic expert, has weighed in on a report that listed Rwanda among the continent’s fastest rising markets for individuals with net assets of $100 million or more of a currency, commonly termed as centi-millionaires. The Centi-Millionaire Report 2022, was released Tuesday October 18, by leading international residence and citizenship by investment advisory firm Henley & Partners and features exclusive data and insights from global wealth intelligence firm New World Wealth. The report predicted that Rwanda will experience more growth in the number of super-rich individuals with investable assets worth more than $100 million over the next decade, mainly due to its conducive business environment. Rwanda is projected to post at 70 percent the growth in the number of centi-millionaires, being slightly behind countries like Vietnam, India and Mauritius which are expected to post the fastest growth at 95 percent, 80 percent and 75 per cent, respectively. Speaking to Doing Business, Daniel Amateye Anim, who is the Director of Research and Economic Analysis at Business and Financial Times – Ghana, said he is in agreement with the report’s opinion, basing on factors like the business and investment in the African countries that were given top-spots, that is Mauritius and Rwanda. “Mauritius, since about 10 years ago, has done so steadily in terms of investment opportunities, investment climate, and educating the people,” he said. And he had the same opinion about Rwanda, a country which he visited about three years ago. “Rwanda is promoting a very good investment climate,” Anim said, highlighting the importance of Rwanda’s efforts in ensuring that there are policies and frameworks in place to facilitate the ease of doing business. “With all these factors, I am of the view that Rwanda, indeed, is emerging and they are gradually taking the bragging rights from Ghana being the gateway to the sub-region,” he said. He, however, said that there is a need for sustainability of efforts if the positive predictions made about the country are to be realised. “Once they can sustain it for the next decade, then the predictions could be realised in the way of tangible achievements and deliverables,” he said. Looking at the regional picture, the report projected that Kenya will post a 55 percent growth in the number of centi-millionaires, while Uganda will have 65 percent, both trailing Rwanda. The report pointed out that key factors for the growth of the numbers of centi-millionaires include being a safe, business-friendly country with low tax rates, and a hotspot for migrating centi-millionaires. “The migration of wealthy people into a country also helps to build its wealth and has been instrumental in boosting wealth in several high-income markets over the past 20 years,” the report said. Equally important, the report said, is a highly developed banking system and stock market. “When these systems are well-structured, they ensure that individuals invest and grow their wealth locally,’ the report said. According to the report, the USA is home to an astonishing 38% (9,730) of global centi-millionaires, despite constituting only 4% of the world’s total human population. The big emerging markets of China and India follow in second and third place, with populations of 2,021 and 1,132 centi-millionaires, respectively. They rank significantly higher than the main European markets by this measure, with the UK in fourth place (with 968 centi-millionaires) followed very closely by Germany in fifth place (with 966). According to The Centi-Millionaire Report, there appears to be no set path to attaining centi-millionaire status; some inherited their wealth while others worked their way up to the $100 million mark. The report does point out some notable generational differences. As noted, while a growing number of younger entrepreneurs who founded successful tech companies are newcomers to the club, Baby Boomers still tend to dominate the centi-millionaire circle despite many now cashing in their stock options and selling their businesses.

News

Why Rwanda is a key market for future millionaires