According to a study conducted by Brenthurst Wealth Management, with Gavin Butchart at the head, Mauritius has superseded South Africa as the richest country in Africa.
This study of Mauritius as the wealthiest country in Africa has been carried out by this Mauritian-based agency and was then reviewed by both the banking group, AfrAsia Bank and the South African wealth intelligence firm, New World Wealth.
As per the study, “following several decades of strong growth, Mauritius now ranks as the wealthiest country in Africa by some margin (on a wealth per capita basis). The 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 the wealth per capita of the 2nd placed South Africa with US$11,000. Globally, it ranks above Poland (US$23,000) and only slightly below Portugal (US$48,000).”
Commenting on Mauritius performance, Marc-Alexandre Masnin, the Head of Wealth Management International and Investment Sales at AfrAsia Bank highlighted that “despite its dot size, the island continues to host some 4,400 millionaires and this indicates the confidence that wealth owners have in this jurisdiction. Safety and high life standards are hailed as the key reasons why HNWIs choose Mauritius as their domicile besides its attractive tax regime.”
Brenthurst Wealth Management states that 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.
The fact that the Financial Action Task Force (FATF) has concluded that Mauritius will no longer be subject to enhanced ongoing FATF supervision on 21st October 2021 makes the position of Mauritius stronger. Hence, according to the report, growth projections for Mauritius are strong – they 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.
Some of the best lifestyle estates in the world
Luxury estate apartments in Mauritius are amongst the most valuable in Africa, with prime prices reaching as high as US$6,000 per square meter, which is similar to prices in Clifton and Bantry Bay (the most exclusive parts of Cape Town). Estate living is very popular in Mauritius, especially among wealthy expats. The country is home to some of the best lifestyle estates in the world, including the likes of Anahita, Mont Choisy Le Parc and the One & Only Residences at Le Saint Geran. Notably, Anahita was recently rated as one of the top 10 lifestyle estates in the world for 2021.
