The rich get richer in Botswana

Pauline Dikuelo | Tuesday September 25, 2018 17:23

 

According to the Africa 2018 Wealth Report, the continent’s most authoritative report on private wealth, Botswana was one of the top 10 wealthiest countries in Africa last year, ranked position four with an average wealth per capita of $7,900.

The country’s wealth at individual level last year grew by 11% making it the second highest country after Mauritius with 20%.

The total wealth recorded in Gaborone in 2017 was US$9 billion, as measured through people’s assets, which include property, cash, equities, business interests, minus liabilities. Over the past 10 years ending in 2017, Botswana’s wealth at individual level has grown by 32%, a trend that is expected to rise in the next 10 years. 

“Botswana’s private wealth is projected to show solid growth in the coming 10 years of 50% to 80%, while total private wealth in Africa is expected to rise by 34% over the next 10 years reaching $3.1 trillion by end of 2027,” the report indicates.

The country’s total private wealth was measured looking at all individuals working in the country including expatriates. The report covered 17 African markets excluding Algeria, DRC and Zimbabwe due to lack of reliable source of data.

According to the report, the top factors that encourage private wealth growth in a country include strong safety and security, with Botswana named amongst the safest countries in Africa together with Mauritius and Namibia.

Other factors include strong economic growth, ease of investment, wealth migration, low income tax and company tax rates, low level of government intervention, a well developed banking system and stock market as well as free and independent media that allows dissemination of accurate information to investors.