South Africa is home to the largest luxury market by revenue.
South Africa ranks 28th in the world in terms of private wealth, despite the country’s performance taking a dive over the past decade.
According to the latest 2022 Africa Wealth Report, published recently by Henley & Partners in partnership with New World Wealth, South Africa’s total private wealth held in the country declined by 12 percent from $739 billion in 2011 to $651 billion in 2021.
However, Amanda Smit, managing partner of Henley & Partners South Africa, points out that the country is ahead of major economies such as Argentina, Malaysia, Thailand, and Turkey.
“No matter how well or poorly a country is performing today, one thing has become very clear in our new age of uncertainty – governments and investors alike must focus on building resilience,” says Amanda.
According to the report, Africa’s two wealthiest cities are in South Africa. Johannesburg is the wealthiest, with total private wealth of $239 billion, while Cape Town is in second place with a total private wealth of $131 billion. Cairo follows closely behind with $128 billion in privately held wealth, and Lagos is in fourth position with $97 billion in private wealth.
South Africa, the report says, is also home to the largest luxury market in Africa by revenue, followed by Kenya and Morocco. “South Africa’s luxury sector, which includes exclusive hotels and lodges, cars, clothing and accessories, watches, private jets, and yachts, generates revenue of approximately $2 billion a year, making it the largest on the continent by a substantial margin.
“Much of this revenue is generated from the sale of luxury foreign brands such as Porsche and Louis Vuitton,” the report reads.