Uganda to register massive growth in dollar millionaires, says report 

Uganda would, by 2032, have experienced substantial growth in the number of super-rich individuals, according to the Africa Wealth Report by research firms New World Wealth and Henley & Partners. 

The report, which examines factors that favour growth of wealth and provides a comprehensive review of the wealth sector in Africa, notes that in the next decade there will be more individuals with investible assets in the region of more than $100m. 

Currently, the report indicates, there  are only three Ugandans in this category out of the 1,563 dollar millionaires.   

The growth, which the report projects to be 65 percent, will be supported by the presence of a well-built and conducive business environment compared to other member states within the East Africa Community. 

Uganda’s growth will be faster than Kenya, which is projected to increase by 55 percent by 2032. 

However, it will be lower than Rwanda, whose growth is projected to be at 70 percent. 

The growth, the report noted, is likely to supercharge the investment of migration industry as well as enhance diversification of wealth and legacy management.

At least $37b in Uganda is held in private wealth by 1,563 dollar millionaires, of which at least 1,500 are classified as high net worth individuals holding about or more than $1m while 60 are multi-millionaires, holding above $10m.  Only three individuals are classified as centi-millionaires, holding investments of more than $100m. The report does not indicate whether there are dollar billionaires in Uganda. 

The report also indicates that Mauritius, Rwanda and Uganda are expected to be the strongest performing wealth markets in Africa during the next 10 years with 60 percent-plus growth rates.  

The Africa Wealth Report also indicates that Uganda and Rwanda’s growth will be hinged on travel and tourism by high net worth individuals, who, in the next 10 years, will seek to share in experiences of popular tourism sites, including gorilla safaris in Bwindi Forest and Virunga Mountains in Uganda and Rwanda, respectively. The report also lists Sanctuary Gorilla Forest Camp among Africa’s top 10 safari lodge choices. 

Globally, Vietnam, India and Mauritius are expected to post the fastest growth, posting 95 percent, 80 percent and 75 percent, respectively.

Uganda has been hailed for having the most developed financial sector in East Africa. 

A study by the Official Monetary and Financial Institutions Forum and Absa Bank last week noted that Uganda could in a few years become East Africa’s financial hub, with an eye on increased inflow of foreign direct investments.

The sixth edition of the Absa Africa Financial Markets Index indicates that Uganda has made significant improvement in five key areas compared to Kenya, Tanzania, Rwanda and the DR Congo, among which include access to foreign exchange market, transparency in taxation and regulatory regime, capacity of local investors, state of the macroeconomic environment and transparency in the enforcement of legal contracts.

The report also indicates that Uganda beats its regional peers on market accessibility, openness and transparency followed by Kenya, Tanzania, Rwanda and the DR Congo.

Review of Africa’s wealth sector 
Now in its seventh year, the report provides comprehensive review of the wealth sector in Africa, including trends among high-net-worth individuals, luxury market, and wealth management. 

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