UGANDA, Kampala | Real Muloodi News | Research has shown that Uganda will soon experience a significant increase in the number of dollar millionaires in the country.
According to the Africa Wealth Report by research companies New World Wealth and Henley & Partners, the number of extremely wealthy people in Uganda will significantly increase by 2032.
The research, which explores variables that promote wealth accumulation and gives a detailed overview of Africa’s wealth sector, states that over the next ten years, more people will have investable assets of around US$100 million or more.
In Uganda today, at least US$37 billion is held in private wealth by 1,563 dollar millionaires, of which at least 1,500 are categorised as high net worth persons with over US$1 million, and 60 are multi-millionaires with more than US$10 million, according to the research.
Only eight people are recognised as centi-millionaires in Uganda, with investments worth more than $100 million. The research does not say whether Uganda has any dollar billionaires.
‘Private wealth’ refers to an individual’s net assets, namely all their assets (property, cash, equities, and business interests) less any liabilities.
African investors have shown a preference for real estate-linked investment programs as a hedge against unrelenting currency, market and political volatility on the continent, improving wealth diversification and legacy management.
Experts predict a healthy wealth growth of 38% for the African continent in the next decade. However, Uganda is one of the countries that stands out, with its growth is expected to rise by 55% by 2032.
Comparing other member states of the East Africa Community, Uganda’s growth is forecast to outpace Kenya’s 43% growth, but is expected to be lower than in Rwanda, where growth is expected to exceed 70%.
According to the analysis, Mauritius, Rwanda, and Uganda are likely to be the best-performing wealth markets in Africa over the next decade.
The report states the growth of Uganda and Rwanda will be dependent on travel and tourism by high net-worth individuals who, over the next ten years, will seek to share in experiences of popular tourist sites such as gorilla safaris in Uganda’s Bwindi Forest and Rwanda’s Virunga Mountains.
Sanctuary Gorilla Forest Camp is also included as one of Africa’s top ten safari lodges in the survey.
Globally, Vietnam, India, and Mauritius are predicted to expand the quickest, with rates of 95%, 80%, and 75%, respectively.
Uganda has been lauded for having one of East Africa’s most developed finance industry.
According to research released last week by the Official Monetary and Financial Institutions Forum and Absa Bank, with the growing influx of foreign direct investments, Uganda may in a few years become the financial centre of East Africa.
In comparison to Kenya, Tanzania, Rwanda, and the Democratic Republic of the Congo, the sixth edition of the Absa Africa Financial Markets Index show that Uganda has made significant advancements in five key areas.
These area include access to the foreign exchange market, transparency in taxation and regulatory regime, the ability of local investors, the state of the macroeconomic environment, and transparency in the enforcement of legal contracts.
According to the survey, Uganda outperforms its regional neighbours in terms of market accessibility, openness, and transparency, followed by Kenya, Tanzania, Rwanda, and the Democratic Republic of the Congo.
Looking at Africa’s financial industry, the research, which is now in its seventh year, offers a thorough analysis of the wealth sector in Africa, taking into account changes in high-net-worth people, the luxury market, and wealth management.
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