The rise of Mauritius as the wealthiest country in Africa
Mauritius based banking group AfrAsia Bank and South African wealth intelligence firm New World Wealth have reviewed the rise of Mauritius as the wealthiest country in Africa.
Following several decades of strong growth, Mauritius now ranks as the wealthiest country in Africa by some margin (on a wealth per capita basis). Average wealth per person (wealth per capita) in the country amounts to just over US$30,000 as at June 2021, which is well above 2nd placed South Africa (US$11,000). Globally, it ranks above Poland (US$23,000) and only slightly below Portugal (US$48,000).
Possible reasons for Mauritius’ high wealth per capita:
- Ease of doing business in the country – Mauritius ranks 1st in Africa and 13th worldwide in the World Bank’s 2020 Doing Business Report.
- Low taxes which encourage business formation and appeal to retirees. Notably, there is no inheritance tax or capital gains tax in Mauritius.
- Safety – Mauritius was recently rated by New World Wealth as the safest country in Africa, along with Namibia and Botswana. Notably, safety is one of the key drivers of wealth growth in a country.
- Strong HNWI growth – a large number of wealthy individuals (HNWIs) have moved to this jurisdiction over the past decade. In addition, many locally born HNWIs have been created as the economy has grown. Mauritius is now home to around 4,400 HNWIs, compared to 2,500 HNWIs a decade ago.
- A fast-growing local financial services sector and stock market (SEMDEX).
- High per capita income levels. The World Bank officially classified Mauritius as a high-income country in July 2020.
Our growth projections for Mauritius are strong – we expect it to experience wealth growth of 80% over the next decade (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. By 2030, HNWI numbers in Mauritius are expected to reach just over 7,800 compared to 4,400 currently.
- “High net worth individuals” or “HNWIs” or “millionaires” refer to individuals with wealth of US$1 million or more.
- “Wealth” refers to the net assets of a person. It includes all their assets (property, cash, equities, business interests) less any liabilities.