Rich beach: Mauritius is Africa's wealthiest country per capita, followed by SA

On a wealth per capita basis, Mauritius is the wealthiest country in Africa, according to a new report by Mauritius-based AfrAsia Bank and wealth intelligence firm New World Wealth.

Mauritius had about 1.6 million inhabitants in 2020, compared to SA at 59.31 million. The average wealth per capita in Mauritius is US$30 000 (about R433 000), far more than South Africa, which was in second place with US$11 000 (about R158 840) per person.

If one does not analyse on a per capita basis, however, the "Big 5" wealth markets in Africa are South Africa, Egypt, Nigeria, Morocco and Kenya, according to an earlier separate report by AfrAsia Bank and New World Wealth. Together these five countries account for over 50% of Africa's total wealth.

"Wealth" is defined as the net assets of a person. It includes all their assets (property, cash, equities, business interests) less any liabilities, according to the latest report by AfrAsia Bank and New World Wealth.

The Mauritius average per capita wealth report expects wealth growth of 80% in Mauritius up to 2030. This will make it one of the five fastest-growing high-income markets in the world over this period, along with Australia, New Zealand, Switzerland and Malta.

Apart from a large number of high net-worth individuals (HNWIs: wealth of US$1 million or more - about R14.44 million) moving to Mauritius over the past decade, the growing economy has enabled more locals to move into this wealth category. Mauritius is now home to around 4 400 HNWIs compared to 2 500 HNWIs a decade ago. The report expects that by 2030 Mauritius could have more than 7 800 HNWIs.

Possible reasons for Mauritius ranking top in Africa put forward in the report include ease of doing business. For example, Mauritius ranks first in Africa and 13th worldwide in the World Bank's 2020 Doing Business Report. The World Bank officially classified Mauritius as a high-income country in July 2020.

Another possible reason is low taxes, including no inheritance tax or capital gains tax, making the island attractive to retirees.

Safety is one of the key drivers of wealth growth in Mauritius, according to the report. New World Wealth rates it as the safest country in Africa, along with Namibia and Botswana.

A trend identified in the report is estate living being very popular in Mauritius, especially among wealthy expats. Luxury estate apartments reach as high as US$6 000 per square meter, which is similar to prices in Clifton and Bantry Bay along Cape Town's pricey Atlantic Seaboard.