For a long time, interest in the global luxury market has been confined to Asia; after all, the region is set to account for over half of the luxury goods market in the next decade, according one estimation. But, as Africans become wealthier, leading luxury brands are starting to eye the continent. So which labels are set to be trailblazers and what are the challenges ahead? Report by Sherelle Jacobs –
Africa’s wealthy class is growing. In 2012 the region’s segment of high-net-worth individuals (HNWI) grew by 9.9%, the second-highest growth rate in the world after North America, and above the global average growth rate of 9.2%, according to the latest World Wealth Report by the consulting firm Capgemini.
During the same period, the growth rate for African HNWI wealth increased 11.5% to $1.3 trillion, 1.5% above the global average. The number of billionaires in Africa could grow 117% over the next decade, the second-fastest regional rate of growth in the world after Asia.
The number of millionaires in Africa is also growing. Johannesburg is now home to 23,400 dollar millionaires, according to a report by UK-based New World Wealth, a UK-based information provider on the wealth sector in Africa.
Lagos hosts almost 10,000 dollar millionaires, Cape Town around 9,000. The number of dollar millionaires in the Kenyan capital, Nairobi, is expected to spike 62% to over 8,000 dollar millionaires.