How they $pend it: Africa’s new millionaire elite

On the banks of the Jukskei River just north of Johannesburg in South Africa, lies the exclusive Dainfern Golf Estate. This luxury gated complex, built in 1992, contains over a thousand elite homes that offer residents a sanctuary of security and sophistication close to South Africa’s commercial hub. Since its completion it has remained a perennial favourite with wealthy foreign buyers keen to snap up luxurious properties in South Africa, but over the last thirty years it has also counted Zimbabwean billionaire Strive Masiyiwa, Nigerian pastor Chris Oyakhilome and Springboks rugby player Joost van der Westhuizen as residents.

“In areas like Fourways and Midrand, African HNWIs [high-net-worth individuals] are interested in gated estates for security, lifestyle and convenience,” says Andrew Golding, chief executive of the Pam Golding Properties group. “In Johannesburg, luxury homes in leafy Westcliff, Dunkeld and Melrose have evergreen appeal for African buyers.”

Johannesburg is the city with the highest concentration of wealth across the whole continent, with wealth primarily concentrated in a few suburbs. Westcliff’s abundance of mansions designed by colonial architect Herbert Baker – which contain gardens and panoramic views – is one such enclave.

“While we have always seen demand for luxury residential property among buyers within the African continent, this trend has increased considerably in recent years,” says Golding. “We receive strong enquiries out of Kenya, Ghana and Nigeria, and over recent years buyers from Zimbabwe, the DRC, Zambia, Malawi and Angola, have become more prevalent.”

As wealth creation diversifies, the number of intra-African buyers of luxury properties is increasing, with significant interest, Golding notes, from other countries, including Zimbabwe, Angola and the DRC. They are as likely to build fortunes in blockchain or crypto as they are in more traditional industries such as oil and mining.

This newer clientele tends to be younger, with a global outlook and ambition, and they seek luxury property not only as a hub for their families and children, but as valuable assets, and a way to shore up their legacy and future-proof their wealth.

“These homes are viewed as permanent bases, whether for business travel, education, or leisure,” says Golding. “Some families will relocate to enrol their children in Johannesburg’s top schools while maintaining business operations across the continent. Generally, we find that African and South African HNWIs have similar preferences, with security, lifestyle and location all key priorities when purchasing a property.”

New wealth hubs emerge

No longer confined to traditional definitions of wealth and success, Africa’s new wealthy elite are making strategic, legacy-driven decisions not only about where they live, but also how they live.

Lux Afrique Boutique is a multi-brand luxury e-commerce platform that serves this diverse and growing clientele. Specialising in the expensive, unique and luxurious, its wares range from watches to furniture and cases of wines, and it ships to all countries on the continent.

“Over the past few years, we’ve seen a growing client representation from Western and Southern Africa, namely Nigeria and South Africa… as well as the rest of Africa, more specifically Angola, Algeria, Kenya, Morocco, Côte d’Ivoire, Namibia and Zambia,” says Alexander Amousu, founder of Lux Afrique Boutique. “This reflects the emergence of new wealth hubs… demographically, while established business leaders remain key, we have observed a rise in younger, tech-savvy HNWIs, often from the digital, finance and entrepreneurial sectors. These newer clients are particularly receptive to our e-commerce platform and concierge services.”

According to Amousu, fine jewellery and watches remain among their most popular items, often viewed as both status symbols and tangible investments, but high-end pieces from renowned global brands, alongside African designers, are also highly sought after. Among Lux Afrique Boutique’s offering is works by Nigerian artist Adubi Mydaz that retail for many thousands of dollars, as well as high-end African perfumes and scents.

“An emerging category gaining traction is our luxury home and lifestyle section,” says Amousu. “This includes high-end furniture, interior decor, smart home technology, gourmet foods and fine spirits. Clients are investing in creating luxurious and comfortable living spaces that reflect their globally personalised style. This reflects a broader trend of integrating luxury into every facet of their lives.”

Exclusive experiential travel

Beyond tangible goods, exclusive experiential travel is in high demand, such as securing VIP access to fashion shows, private art viewings, or arranging luxury travel with specific, unique requirements.

“HNWIs are increasingly adopting a “phygital” approach, blending online convenience with in-person experiences,” says Amousu. “These bespoke services highlight HNWIs’ shift from mere consumption to a desire for unique, authentic and truly personalised luxury. They seek not just products, but investments in rarity and personal expression.

This renewed demand for “unobtainable” items underscores a preference for exclusivity and discreet acquisition, including curated, individualised luxury that reflects their tastes and personal preferences. More often than not, this will include an item’s origin and background.

“Beyond simply acquiring high-quality goods and experiences, HNWIs are driven by a desire for authenticity, cultural connection and impact investing,” says Amousu. “They seek brands that tell a compelling story, showcase exceptional African craftsmanship, and contribute positively to the continent’s development.”

Amousu says that Lux Afrique Boutique’s commitment to channelling part of each sale towards sustainable business projects directly aligns with this trend, as African HNWIs are more likely to support brands that demonstrate social responsibility. This “feel-good factor” as he calls it, transforms a transaction into an investment in a cause and attracts clients who seek purpose alongside prestige.

Managing elite wealth

The growing emphasis on purposeful capital allocation, even with luxury or non-necessary purchases, signals a significant shift in how wealth is being managed. This evolution has not gone unnoticed by African wealth advisors and financial managers, who are increasingly guiding high-net-worth individuals and families toward strategies that align financial growth with social and environmental returns.

“Wealth is no longer just about accumulation,” says Ricardo Teixeira, managing director of BDO Wealth Advisers in Cape Town. “It’s increasingly being viewed as a means to support a meaningful life. Clients are asking how their wealth can enable what matters most to them – whether that’s supporting causes, creating experiences, or contributing to future generations. The emphasis is now on purpose and impact, not just financial returns.”

For many families, Teixeira notes, there is a growing alignment between financial decisions and impact-driven decisions that align with deeply held personal and family values. This is part of a broader structural shift where financial success is increasingly measured by impact, sustainability and intergenerational transfer.

“Philanthropy, education, ESG-oriented investments [with environmental, social, and governance criteria] and support for African-owned brands are becoming key themes across the continent’s affluent circles,” says Teixeira.

For these African families, wealth is being leveraged to support charitable causes, foster sustainability and enhance the quality of life for future generations. This transformation is particularly notable in a country like South Africa, where wealth inequality remains a significant issue.

The rise of philanthropy

Wealthy families are increasingly investing in initiatives that aim to bridge this gap through funding education, healthcare and entrepreneurship in underdeveloped regions. There is a clear trend toward more socially conscious investing, not only through traditional investment vehicles but also through brand endorsement and charitable donations.

One such individual is Orikolade Karim, group managing director and CEO of Shoreline Energy International. A Nigerian business magnate, Karim built up Shoreline, an energy solutions company, over three decades. Nevertheless, he believes that “profit is fleeting, while purpose endures.”

Karim, who launched the Karim Family Foundation, is part of a growing cohort of high-net-worth individuals across the continent who are channelling their wealth toward philanthropic initiatives. This May, Zimbabwean telecoms tycoon Strive Masiyiwa and his wife Tsitsi launched a $500m fund aimed at improving maternal and child health in Africa.

In the same month Nigerian Aliko Dangote, Africa’s richest man, made a donation of 15bn naira ($9.8m) to the Aliko Dangote University of Science and Technology, in Wudil, Kano State, which the governor of Kano province had renamed after him in 2022. He announced a five-year development plan to transform it into a cutting-edge research institution.

These social investments mirror Teixeira’s observations of a rapidly transforming wealth landscape; one in which family values, social responsibility and long-term sustainability are increasingly central to the way HNWIs approach their wealth. As Karim puts it, philanthropy should not be an afterthought, but rather “the first line item in the budget of conscience”.

Rather than flocking towards global playgrounds of the rich and famous such as Dubai or Los Angeles once they have made their fortunes, it is significant that wealthy Africans are choosing to invest in their own backyard.

“Commercially, I seek ventures that multiply employment and skills on African soil,” says Karim. “Legacy is not the monuments we build but the minds we equip and the institutions we strengthen for the next generation.”

The Karim Family Foundation focuses on scholarships because education, Karim believes, “compounds in ways balance sheets cannot measure”.

By investing in Africa’s future, private wealth holders are contributing to the economic development of their home countries where the continent’s future businesspeople, entrepreneurs, innovators and communities can thrive.

Tricky succession planning

A task that is equally imperative for wealthy Africans is championing their personal futures too by shoring up financial support for their own family – but it is no less challenging. Legacy planning for African HNWIs is increasingly complicated by increased global mobility and modern family structures.

“Many families have children living abroad,” notes Teixeira. “That introduces complexity around tax, exchange control and succession planning across multiple jurisdictions.”

This risk is compounded by the rise of blended families, multiple marriages and having children in different countries – all of which require bespoke estate planning, transparent governance and clearly defined family values. “In business-owning families, succession planning is complicated when the next generation is either abroad or not interested in being involved in the business,” says Teixeira.

He explains that while trusts remain an important tool, not only for intergenerational planning but also for managing wealth in cases of illness or incapacity, he has also observed “a preference for simpler, more efficient structures – fewer holding companies, fewer offshore vehicles and more attention to governance and transparency”.

As Africa continues its ascent on the global wealth stage, the profile of African HNWIs is undergoing a profound transformation. According to Henley’s Africa Wealth Report 2024, Africa’s millionaire population is projected to rise by 65% over the next decade, fuelled primarily by growth in sectors including fintech, eco-tourism, renewable energy, software development and green tech.

However, the future of African wealth will not be defined by accumulation alone – it will be shaped by necessary diversification, legacy planning and a values-driven approach to investing. “African HNWIs must become catalytic capitalists: first-loss investors in infrastructure, patient backers of technology and conveners who blend public, private and philanthropic finance,” says Karim.

A new generation of wealth

The first generation of entrepreneurs and business magnates who emerged in the wake of Africa’s post-independence era are now nearing retirement. Alongside business portfolios, properties are one of the most valuable assets that can be handed down through the generations.

As this wealth begins to transfer to the next generation, it is poised not only to be preserved but also to grow – with second-generation heirs increasingly equipped with global education, financial literacy and a modern outlook.

The continent also boasts one of the fastest-growing youth populations globally, amplifying the urgent need for robust succession planning to ensure wealth is preserved and passed on through future generations in order, asserts Karim, that “larger pools of global capital can flow confidently into African ideas”.

Golding anticipates “ongoing demand for prime real estate” in years to come, “including lifestyle estates and conveniently well-located luxury homes and apartments in key hubs and sought-after areas”.

Ultimately, it seems that the future of Africa’s HNWIs will be shaped by a more holistic view of wealth than has been seen in the past – one that embraces legacy, impact and transformation, rather than just creation. Whether through philanthropy or investing, the continent’s wealthy elite are shaping a new vision of prosperity rooted in modern values.

But that doesn’t mean they don’t intend to enjoy the fruits of their success. Karim funds scholarships in Nigeria, but he also enjoys some well-earned luxuries.

“Anything that deepens connections is worth the cheque,” says Karim. “I will gladly pay for time in the saddle with my children, friends and family on a polo field.”