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Business and Development

These 3 African Countries Are Minting Millionaires At A Rate Faster Than The United States

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PSquare’s Peter Okoye at his multi million Banana Island home

The United States and Japan house some of the largest proportion of rich people in the world, but neither of them are on the top 10 list of the fastest-growing high net worth countries in the world. This is despite being the leading economic powerhouses globally.

TOP 10 HIGH NET WORTH COUNTRIES IN THE WORLD

The U.S. remains by far the dominant high net worth nation, as it has done since the concept of high net worth was first recognized. However, as far as minting new millionaires is concerned, opportunities are knocking on the door in unexpected places as reported in the High Net Worth Handbook 2019 by Wealth-X,  a reputable global wealth research firm.

TOP 10 FASTEST GROWING HIGH NET WORTH COUNTRIES IN THE WORLD

When it comes to the top 10 fastest growing high net worth countries in the world, Africa is taking the lead. Nigeria takes the first position with an annual millionaire growth rate of 16.3 percent. Egypt comes in second globally, with the country expected to mint new millionaires at an annual rate of 12.5 percent. Kenya is ranked sixth in the new millionaires’ list. The country has a rate of 9.0 percent, the same position with China (the second biggest economy in the world). These African countries have set up a good breeding ground for new millionaires to be minted in the next five years.

High net worth countries

10 fastest growing high net worth countries in the world; (Source)

Other countries in the top ten list include the following;

  • Bangladesh takes the third position with 11.4 percent.
  • Vietnam comes in the fourth position with 10.1 percent.
  • Poland scoops the fifth position with 10.0 percent.
  • India follows behind Kenya and China with 9.7 percent.
  • The Philippines ranks in the eighth position with 9.4 percent.
  • Ukraine sums up the list at the tenth position with 9.2 percent.

The report is based on research of 540,000 high net worth (HNW) individuals. These are defined as those individuals with $1 million to $30 million. Individuals worth above $30 million are referred to as Ultra High Net Worth (UHNW) and are not part of this report.

The report took account of the following parameters;

  • Anticipated future economic and investment opportunities.
  • Current wealth levels.
  • Population growth projections.

Special and Surprising High Net Worth Countries

Nigeria (and Egypt) performance is impressive because of energy export gains. Bangladesh, on the other hand, gets its success from increased infrastructure investment and fast urbanization. What about Kenya? Kenya draws from greater structural investments. The same case applies to the Philippines, India, and Vietnam. Ukraine and Poland have booming tech sectors.

The research firm puts Kenya (and Poland) in a special category called “surprising cases”. These are the countries with faster HNW growth rates than the overall economic growth. In this case, developing countries with fewer wealthy individual have greater relative growth. Kenya and Poland are unique countries in the list because they do not belong to any major economic block.

Kenya is not in BRICS, (a block that includes Brazil, Russia, India, China, and South Africa). It is not in MINT (Mexico, Indonesia, Nigeria, and Turkey). Neither is it in EAGLES (Korea, Indonesia, Mexico, Turkey, Egypt and Taiwan).

“With a growth measure we would expect to see some less affluent countries with small HNW populations but Poland and Kenya are two surprising cases,” the report noted.

These results confirm World Ultra Wealth Report 2018. This is an earlier report by the same company. The report showed that the number of ultra-rich individuals in Kenya grew significantly by 11.7 percent in 2017.

Chinese Economic Agenda

China, with its national economic agenda has continued to impress in the wealth sector. The country is projected to house 32 of the 40 HNW cities in the world in the next five years. The United States did not make it in the list despite being home to 8.7 million millionaires. This is understandable because it would be difficult to record the same growth rates with such a number of affluent individuals.

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Business and Development

Tanzanian Government Wants Visitors To Accept This Minor Inconvenience

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Plastic accumulation is becoming a menace around the globe. Marine life often consumes these plastics which eventually get into humans. Many countries around the world are exploring alternatives to plastic use. However, Tanzania is the latest country to officially place a ban on the use of plastic bags. The ban will take effect from the 1st of June 2019. On Thursday 16th of May 2019, the government released a statement titled “Notice To Travelers Planning To Visit Tanzania” which read in part,

“The Government of Tanzania wishes to make an official note to travelers planning to travel to Tanzania that from 1st June 2019 all plastic bags, regardless of their thickness will be prohibited from being imported, exported, manufactured, sold, stored, supplied and used in mainland Tanzania.”

Consequently, the government is planning to set up a special desk at entry points to ensure total compliance. With the announcement, Tanzania joins about thirteen other African countries that have either introduced levy or banned plastic bags. However, the Prime Minister, Kassim Majaliwa is calling on plastic bag manufacturers to find alternative technologies for bags.

The problem with plastic bags and exceptions to the ban

Tanzania bans plastic waste

The major problem with plastic bags is the length of time it takes to decay. Some researchers are speculating it can take up to 1,000 years. Consequently, their accumulation can lead to flooding when they block drainages. Also, they can prevent rainwater from penetrating the soil leading to low crop yield.

However, the government understands the importance of plastic in packaging and makes exceptions for a few. According to the statement, plastics or plastic packaging for sanitary and waste management, foodstuff, agricultural sector, construction industry, industrial products, and medical services are exceptions to the ban. “Ziplo Bags” used for carrying toiletries are also permitted for travelers since they are unlikely to be disposed of in the country. Another part of the statement reads,

“The government does not intend for visitors to Tanzania to find their stay unpleasant as we enforce the ban. However, the government expects that, in appreciation of the imperative to protect the environment and keep our country clean and beautiful, our visitors will accept minor inconveniences resulting from this plastic bags ban.”

Commendations for the new law

The international community is sending their message of congratulations to the Tanzanian government for the historic move. One of such messages came from Dr. Amani Ngusaru, the WWF Country Director. Ngusaru lauded the move as a boost to environmental and natural resources protection.

“Plastic is a number one polluter of environment and a silent killer of our natural environment and resources than most people understand. This is because it takes more than a hundred years for a single plastic bag to decay. We are happy that Tanzania is among the very few African countries to ban the use of plastic bags and we will work hard toward supporting the government in the fight against plastic pollution”.

Other African countries with a plastic control

In 2007, Uganda placed a ban on lightweight plastic bag. However, the ban was never implemented. In August 2018, Kenya introduced a total ban on the use of plastics. Consequently, those using plastics illegally in Kenya risk 4 years in prison or a fine of $40,000. Also, it is illegal to import, produce, use, or sell plastic bags in Rwanda. Currently, there are over 40 countries around the globe that banned, restrict or tax the use of plastics including Italy, France, and China.

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Business and Development

Tanzania Electric Train Commence Trial In July

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Tanzania electric train

Tanzania is reaching for another economic milestone. The government announced that it was it will be testing its maiden self-funded electric train. The train which will run at 160 km/h will be one of Africa’s fastest high-speed trains. The train will also provide a cheaper means of transport to the citizens.

Further details show that the phase running from Dar es Salaam to Morogoro which has 6 in between stations and stretches 300 kilometers will commence operation in December. The trial trains in phase one will be three passenger trains. However, these trains will conduct daily round trips covering the two cities. Each passenger train will be making a minimum of 9 trips per day.

Difference between Tanzania electric train and regular train

The speed train will make use of concrete sleepers. This allows the railway network to carry as much as 35 tonnes of load per axle and increase its durability. Consequently, the rails should be able to last up to 40 years before any major repairs. However, the train bridge can last up to 100 years.

Speaking at the historic launch of the flash butt welding of the Standard Gauge Railway (SGR) at Soga, outside Dar es Salaam in Coastal region, Eng. Issac Kamwele, the Minister for Works, Transport and Communications said the trial of the speedy electric train will happen in July. However, the trial will only cover a section of the SGR. In comparison to other country’s SGR, Tanzania’s will be fasters. Kenya and South Africa’s SGR can only reach a speed of 120 km/h

The impact this project will have on the economy

Tanzania government is making great strides to boost the economy of the nation. Recently, the government proposed plans to build cable cars for Mount Kilimanjaro. This is projected to double the current 50,000 annual tourists. However, not many think it is a good idea. A few groups think it will lead to the loss of thousands of jobs.

ALSO READ: Tanzanian Government Considering Cable Car For Mount Kilimanjaro And Here Is How People Reacted

The $1.9 billion (Tshs 4.3 trillion) project has already created over 26,000 job opportunities. However, the government is optimistic that the second and subsequent phases will create more opportunities once fully functional.  The first railway lines in Tanganyika (previously German East Africa) were built after Zanzibar’s first tramway. The Ethio-Djibouti SGR project is currently the longest and first trans-boundary electric railway in Africa.

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Tanzanian Government Considering Cable Car For Mount Kilimanjaro And Here Is How People Reacted

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In a bid to boost the number of tourists visiting the East African nation, the Tanzanian government is considering putting cable car on Mount Kilimanjaro. Consequently, the government is currently in talks with a Western and Chinese company to actualize this project. Mount Kilimanjaro holds the record as Africa’s tallest mountain.

https://t.co/HWfAVMoM83

According to the deputy minister for tourism, Constantine Kanyasu, the current 50,000 tourists that climb Mount Kilimanjaro could double with a cable car. This is because children and the physically challenged will have a chance to climb the mountain too. However, the Tanzania National Parks Authority (TANAPA) is carrying out a feasibility study on the possible routes. In a report on Reuters, Kanyasu said,

“We are still doing a feasibility study to see if this project works. There are two companies, one from China and another from a Western country that have shown interest. This won’t be the first time in the world, cable cars are there in Sweden, Italy, [and] the Himalayas.”

Impact of tourism to Tanzania’s economy

Tourism is Tanzania’s major source of foreign exchange earnings. Tanzania witnessed a 7.13% increase in tourism in 2018, particularly those visiting Mount Kilimanjaro. Consequently, Tanzania earned $2.43 billion in 2018. This is a boost from the country’s $2.19 billion earning in 2017. Mount Kilimanjaro is nearly 5,000 meters high and has three volcanic cones. Other tourist attractions in Tanzania are wildlife safaris and beaches.

The Tanzanian government is still reviewing business plans, profits and potential investors. There are lots of options for the routes and the length is yet to be finalized. The tourism mister said the government will also be looking at cost and engineering issues as well as environmental impact assessment.

Not everyone is happy with the idea of Mount Kilimanjaro cable car

Not everyone is in support of the idea of having a cable car on Mount Kilimanjaro. Spearheading the anti-cable car idea is the Tanzania Porters’ Organization. Guide groups and porters who accompany tourists up the mountain fear that the building of a cable car will reduce the number of climbers. There are nearly 20,000 porters working between Meru and Mount Kilimanjaro. Throwing more light to the harm this innovation would cause was the head of Tanzania Porters’ Organization, Lioshiye Mollel. Mollel said,

“One visitor from the U.S. can have a maximum of 15 people behind him, of which 13 are porters, cook and a guide. All these jobs will be affected by a cable car. We are of the view that the mountain should be left as it is.”

On Twitter, @AndyTraenkner said, “I’ve been fortunate to summit that amazing mountain twice, so far. Scarring its natural beauty with a cable car is a crime”

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