Dar es Salaam. Tanzania’s ranking in the number of dollar millionaires has fallen to number 10 from seventh in 2022, according to a report by research firm New World Wealth and Henley & Partners report released on Tuesday March 2023.
With a growth of 20 percent in the past 10 years (2012-22) the latest 2023 Africa Wealth Report published by Henley & Partners alongside New World Wealth shows Tanzania has 2,400 individuals with a net worth of over $1 million (Sh2.3 billion) and above.
The report also shows that the number of billionaires stagnated with six individuals in the Centi-millionaires category with over $100 million
Most of the dollar millionaires (1,300) reside in the commercial capital Dar es Salaam a city that was ranked 12th richest in 2022, with total private citizens wealth of $24 billion (Sh55 trillion).
However, observers were quick to note that the population of Tanzania’s dollar millionaires in the study is significantly higher than estimates in other reports, indicating the difficulty of tracking the wealthy in Africa.
In the report, Tanzania is the only East African country with a dollar billionaire after it failed to identify such individuals in Kenya, Uganda and other EAC countries.
The report reveals that Africa’s “Big Five” private wealth markets — South Africa, Egypt, Nigeria, Kenya, and Morocco — together account for 56 per cent of the continent’s high-net-worth individuals (HNWIs) and over 90 per cent of its billionaires.
There are currently 138,000 HNWIs with a private wealth of $1 million or more living in Africa, along with 328 centi-millionaires worth $100 million or more, and 23 US-dollar billionaires.
The report shows that only six countries in Africa have dollar billionaires with Egypt having 8, South Africa having 5, Nigeria and Morocco having 4 each, and Algeria and Tanzania both having a single-dollar billionaire.
Despite the stagnation in Tanzania’s dollar millionaires compared to last year, Tanzania has recorded a 20 per cent increase in the number of its dollar millionaires since 2012 even as other countries have been recording sharp drops.
For instance, South Africa’s dollar millionaires have reduced by 21 per cent from 2012, those in Egypt have shrunk by 25 per cent, Nigeria’s have dropped by 30 per cent and Algeria’s dollar millionaires have reduced by 26 per cent during the same period.
Millionaires’ migration
The report indicates that the number of tycoons in African countries varies annually depending not only on the local and global economic conditions but also due to the migration of the super-rich to other countries.
It shows about 18,500 HNWIs have left Africa over the past decade in search of greener pastures elsewhere outside the continent.
About 1,200 HNWIs have moved between African countries over the past 10 years, with most relocating to Mauritius and South Africa.
“Most have relocated to the UK, the USA, and the UAE. Significant numbers have also moved to Australia, Canada, France, Israel, Monaco, New Zealand, Portugal, and Switzerland,” said the report.
To underline this movement, the report shows that, while some 50 dollar billionaires were born in Africa, just 23 of them still live on the continent, raising concerns that the tycoons are exporting business away from their home countries.
“Billionaires rarely move for tax reasons. They usually relocate to expand their businesses or due to safety concerns,” it says.
Africa is home to some of the world’s fastest-growing markets, including Rwanda, Mauritius, and Seychelles, which have seen wealth growth of 72 per cent, 69 per cent, and 54 per cent respectively over the past decade.
The report projects Mauritius to experience the highest private wealth growth rate at 75 per cent over the next decade, making it the fourth fastest-growing country globally in millionaire growth percentage terms after Vietnam, India, and New Zealand.
Share this news
This Year's Most Read News Stories
John Okello: From Zanzibar revolution icon to street beggar
In the final episode, we look at Okello’s ban in Tanganyika, rejection in Kenya tragic end in Uganda.Continue Reading
Zanzibar liquor importers face fresh hurdle despite court order
The liquor shortage in Zanzibar is far from over, even after a court order granted relief to the three importers.Continue Reading
Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
