Johannesburg was the wealthiest city in Africa as of 2021. South Africa's biggest city held 239 billion U.S. dollars in private wealth, while Cape Town followed with 131 billion U.S. dollars. The country led the ranking of wealthiest nations in Africa. The wealth value referred to assets such as cash, properties, and business interests held by individuals living in each country, less liabilities. Moreover, government funds were excluded.

This statistic shows the top 5 African cities in 2014 by number of residing billionaires. In 2014, 10 billionaires were living in Lagos, Nigeria.

The price per square meter in a luxury apartment in Cape Town, South Africa, reached 5,600 U.S. dollars in 2018. It was double of the price measured in Umhlanga, also a city in South Africa, and second in the ranking. The index tracked the square meter price in selected prime apartments, measuring from 200 to 400 square meters, mainly in exclusive living complexes.

Addis Ababa, in Ethiopia, ranked as the most expensive city to live in Africa as of 2024, considering consumer goods prices. The Ethiopian capital obtained an index score of 46.7, followed by Harare, in Zimbabwe, with 37.4. Morocco and South Africa were the countries with the most representatives among the 15 cities with the highest cost of living in Africa.

Lagos, in Nigeria, ranked as the most populated city in Africa as of 2024, with an estimated population of roughly nine million inhabitants living in the city proper. Kinshasa, in Congo, and Cairo, in Egypt, followed with some 7.8 million and 7.7 million dwellers. Among the 15 largest cities in the continent, another two, Kano, and Ibadan, were located in Nigeria, the most populated country in Africa. Population density trends in Africa As of 2022, Africa exhibited a population density of 48.3 individuals per square kilometer. At the beginning of 2000, the population density across the continent has experienced a consistent annual increment. Projections indicated that the average population residing within each square kilometer would rise to approximately 54 by the year 2027. Moreover, Mauritius stood out as the African nation with the most elevated population density, exceeding 640 individuals per square kilometre. Mauritius possesses one of the most compact territories on the continent, a factor that significantly influences its high population density. Urbanization dynamics in Africa The urbanization rate in Africa was anticipated to reach close to 44 percent in 2021. Urbanization across the continent has consistently risen since 2000, with urban areas accommodating 35 percent of the total population. This trajectory is projected to continue its ascent in the years ahead. Nevertheless, the distribution between rural and urban populations shows remarkable diversity throughout the continent. In 2021, Gabon and Libya stood out as Africa’s most urbanized nations, each surpassing 80 percent urbanization. In 2023, Africa's population was estimated to expand by 2.35 percent compared to the preceding year. Since 2000, the population growth rate across the continent has consistently exceeded 2.45 percent, reaching its pinnacle at 2.59 percent between 2012 and 2013. Although the growth rate has experienced a deceleration, Africa's population will persistently grow significantly in the forthcoming years.

As of January 2023, Aliko Dangote was the richest man in Africa. He had a net worth of around 13.5 billion U.S. dollars and ranked 128th worldwide. From Nigeria, he is the founder and chairman of the Dangote Group, a large conglomerate operating in several sectors including cement and sugar. The South African Johann Rupert and family followed as the second-richest people in Africa, with a net worth of 10.7 billion U.S. dollars.

Dangote Group continues to expand

Founded in 1981, the Dangote Group (Dangote Industries Limited) is among the largest conglomerates in Africa. Its main subsidiary, Dangote Cement Plc, is the main cement manufacturer on the African continent. The business went public in 2010 and is the largest company listed on the Nigerian Stock Exchange. In addition to the cement industry, the Group also manufactures and processes food products, such as sugar, flour, and salt. With Nigeria being the leading African country for oil production, Dangote expanded his business into the oil industry in recent years. For this purpose, the Group built Africa’s biggest oil refinery near Lagos, Nigeria.

Africa’s wealthiest countries

Wealth in Africa is concentrated in a few countries and, within those, in a few families. Counting the highest numbers of billionaires, South Africa, Egypt, and Nigeria are the wealthiest nations, having also the largest gross domestic products (GDPs) in Africa. These countries count the highest number of high-net-worth individuals (HNWIs), which amounts to over 39,000 in South Africa. Not surprisingly, Johannesburg and Cape Town have the highest concentration of private wealth in Africa. Moreover, South Africa has the highest wealth per capita after Mauritius.

Abstract

South African policymakers are endeavouring to ensure that the poor have better access to financial services. However, a lack of understanding of the financial needs of poor households impedes a broad strategy to attend to this need. The Financial Diaries study addresses this knowledge gap by examining financial management in rural and urban households. The study is a year-long household survey based on fortnightly interviews in Diepsloot (Gauteng), Langa (Western Cape) and Lugangeni (Eastern Cape). In total, 160 households were involved in this pioneering study which promises to offer important insights into how poor people manage their money as well as the context in which poor people make financial decisions. The study paints a rich picture of the texture of financial markets in townships, highlighting the prevalence of informal financial products, the role of survivalist business and the contribution made by social grants. The Financial Diaries dataset includes highly detailed, daily cash flow data on income, expenditure and financial flows on both a household and individual basis.

Geographic coverage

Langa in Cape Town, Diepsloot in Johannesburg and Lugangeni, a rural village in the Eastern Cape.

Analysis unit

Households and individuals

Universe

The survey covered households in the three geographic areas.

Kind of data

Sample survey data

Sampling procedure

To create the sampling frame for the Financial Diaries, the researchers echoed the method used in the Rutherford (2002) and Ruthven (2002), a participatory wealth ranking (PWR). Within South Africa, the participatory wealth ranking method is used by the Small Enterprise Foundation (SEF), a prominent NGO microlender based in the rural Limpopo Province. Simanowitz (1999) compared the PWR method to the Visual Indicator of Poverty (VIP) and found that the VIP test was seen to be at best 70% consistent with the PWR tests. At times one third of the list of households that were defined as the poorest by the VIP test was actually some of the richest according to the PWR. The PWR method was also implicitly assessed in van der Ruit, May and Roberts (2001) by comparing it to the Principle Components Analysis (PCA) used by CGAP as a means to assess client poverty. They found that three quarters of those defined as poor by the PCA were also defined as poor by the PWR. We closely followed the SEF manual to conduct our wealth rankings, and consulted with SEF on adapting the method to urban areas.

The first step is to consult with community leaders and ask how they would divide their community. Within each type of areas, representative neighbourhoods of about 100 households each were randomly chosen. Townships in South Africa are organised by street - with each street or zone having its own street committee. The street committees are meant to know everyone on their street and to serve as stewards of all activity within the street. Each street committee in each area was invited to a central meeting and asked to map their area and give a roster of household names. Following the mapping, each area was visited and the maps and rosters were checked by going door to door with the street committee.

Two references groups were then selected from the street committee and senior members of the community with between four and eight people in each reference group. Each reference group was first asked to indicate how they define a poor household versus those that are well off. This discussion had a dual purpose. First, it relayed information about what each community believes is rich or poor. Second, it started the reference group thinking about which households belong under which heading.

Following this discussion, each reference group then ranked each household in the neighbourhood according to their perceived wealth. The SEF methodology of wealth ranking is de-normalised in that reference groups are invited to put households into as many different wealth piles as they feel in appropriate. Only households that are known by both reference groups were kept in the sample.

The SEF guidelines were used to assign a score to each household in a particular pile. The scores were created by dividing 100 by the number of piles multiplied by the level of the pile. This means that if the poorest pile was number 1, then every household in the pile was assigned a score of 100, representing 100% poverty. If the wealthiest pile was pile number 6, then every household in that pile received a score of 16.7 and every household in pile 5 received a score of 33.3. An average score for both reference groups was taken for the distribution.

One way of assessing how good the results are is to analyse how consistent the rankings were between the two reference groups. According to the SEF methodology, a result is consistent if the scores between the two reference groups have no more than a 25 points difference. A result is inconsistent if the difference between the scores is between 26 and 50 points while a result is unreliable is the difference between the scores is above 50 points. SEF uses both consistent and inconsistent rankings, as long as they use the average across two reference groups - this would mean that 91% of the sample could be used. However, because only used two reference groups were used, only the consistent household for the final sample selection was considered.

To test this further,the number of times that the reference groups put a household in the exact same category was counted. The extent of agreement at either end of the wealth spectrum between the two reference groups was also assessed. This result would be unbiased by how many categories the reference groups put households into.

Following the example used in India and Bangladesh, the sample was divided into three different wealth categories depending on the household's overall score. Making a distinction between three different categories of wealth allowed the following of a similar ranking of wealth to Bangladesh and India, but also it kept the sample from being over-stratified. A sample of 60 households each was then drawn randomly from each area. To draw the sample based on a proportion representation of each wealth ranking within the population would likely leave the sample lacking in wealthier households of some rankings to draw conclusions. Therefore the researchers drew equally from each ranking.

Mode of data collection

Face-to-face [f2f]

Seychelles had the largest Gross Domestic Product (GDP) per capita in Africa as of 2024. The value amounted to 21.87 thousand U.S. dollars. Mauritius followed with around 13 thousand U.S. dollars, whereas Gabon registered 9.31 thousand U.S. dollars. GDP per capita is calculated by dividing a country’s GDP by its population, meaning that some of the largest economies are not ranked within the leading ten. Impact of COVID-19 on North Africa’s GDP When looking at the GDP growth rate in Africa in 2024, Libya had the largest estimated growth in Northern Africa, a value of 7.8 percent compared to the previous year. Niger and Senegal were at the top of the list with rates of 10.4 percent and 8.3 percent, respectively. During the COVID-19 pandemic, the impact on the economy was severe. The growth of the North African real GDP was estimated at minus 1.1 percent in 2020. However, estimations for 2022 looked much brighter, as it was set that the region would see a GDP growth of six percent, compared to four percent in 2021.
Contribution of Tourism Various countries in Africa are dependent on tourism, contributing to the economy. In 2023, travel and tourism were estimated to contribute 182.6 billion U.S. dollars, a clear increase from 96.5 in 2020 following COVID-19. As of 2024, South Africa, Mauritius, and Egypt led tourism in the continent according to the Travel & Tourism Development Index.

Nigeria is the African country with the largest population, counting over 230 million people. As of 2024, the largest city in Nigeria was Lagos, which is also the largest city in sub-Saharan Africa in terms of population size. The city counts more than nine million inhabitants, whereas Kano, the second most populous city, registers around 3.6 million inhabitants. Lagos is the main financial, cultural, and educational center in the country. Where Africa’s urban population is booming The metropolitan area of Lagos is also among the largest urban agglomerations in the world. Besides Lagos, another most populated citiy in Africa is Cairo, in Egypt. However, Africa’s urban population is booming in other relatively smaller cities. For instance, the population of Bujumbura, in Burundi, could grow by 123 percent between 2020 and 2035, making it the fastest growing city in Africa and likely in the world. Similarly, Zinder, in Niger, could reach over one million inhabitants by 2035, the second fastest growing city. Demographic urban shift More than half of the world’s population lives in urban areas. In the next decades, this will increase, especially in Africa and Asia. In 2020, over 80 percent of the population in Northern America was living in urban areas, the highest share in the world. In Africa, the degree of urbanization was about 40 percent, the lowest among all continents. Meeting the needs of a fast-growing population can be a challenge, especially in low-income countries. Therefore, there will be a growing necessity to implement policies to sustainably improve people’s lives in rural and urban areas.

In 2023, the best city for startups in Nigeria was Lagos, with a total score of 8.23, according to data provided by StartupBlink. Lagos ranked first in Africa and 82nd worldwide. Lagos is the largest city in Africa and represents an important financial hub for Nigeria as well as for the whole continent. Abuja and Ibadan were other ranking Nigerian cities.

As of June 2022, Nassef Sawiris, with a net worth of 7.3 billion U.S. dollars, is the richest man in Egypt, fourth richest in the African continent, and ranked 292 in the world. His sibling Naguib Sawiris ranked second, with a net worth of 3.4 billion U.S. dollars. Their father, Onsi Sawiris, who passed away in June 2021, founded Orascom Construction PLC, which he then passed on to his son Nassef. Four other Egyptian billionaires followed, with three of them belonging to the same family; Mansour. They have a combined net worth of 5.1 billion U.S. dollars. Furthermore, their family business, Mansour group, works in several industries, mainly the automotive industry. It is a General Motors dealer and owns several other franchises.

Orascom in the market since 1950

Born in a Coptic family in the South of Egypt (Upper Egypt), Onsi Sawiris started his construction career in 1950. Soon after, the president of Egypt, Gamal Abdel Nasser assumed power nationalizing the company 10 years later and preventing him from leaving the country for a few years. He was later allowed to leave for Libya returning in President Anwar Sadat’s time in office, establishing Orascom Onsi Sawiris & Co. In 1995, the company was transferred to his son Nassef. As of the fiscal year ending 2020, the total revenue of Orascom construction reached 3.37 billion U.S. dollars with an increment of 5.87 percent year-on-year.

Concentrated wealth in the continent

Among the 20 wealthiest individuals in the African continent, 14 were from Nigeria, Egypt, and South Africa. The wealthiest individual in Africa was the Nigerian Aliko Dangote of the Dangote Group. He was followed by Nicky Oppenheimer and his family and Johann Rupert and his family who were from South Africa. Nassef Sawiris, from Egypt, ranked fourth. This followed the same ranking in terms of the countries with the largest Gross Domestic Product (GDP) in the continent. Furthermore, by reviewing the overall private wealth in Africa, Johannesburg, Cape Town, Cairo, and Lagos rank among the cities with the highest private wealth.

In the African region, the most valuable football team as of the 2023/2024 season was the Egyptian El Ahly, with a market value of 30.5 million euros. El Ahly was established in 1907, and since then it managed to be the most decorated club in Egypt and held the record as the team with the highest Confederation of African Football (CAF) champions league titles. The South African Mamelodi Sundowns FC followed closely with a value of 29.15 million euros. Another Egyptian and South African team followed, namely Pyramids FC and Orlando Pirates, with a market value of 21.73 million and 19.55 million euros, respectively. Furthermore, Zamalek SC ranked fifth with a market value of nearly 19.23 million euros.

Al-Ahly of Egypt dominate the CAF Champions League  

The 2022/2023 CAF Champions League kicked off on September 10 with the first preliminary round. The second preliminary round follows. There, ten teams exempted from the first round compete with the winners to reach the group stage. This is followed by two legs (Home and Away) of quarterfinals, semi-finals, and then a final. The final matches were on June 04, and June 11, 2023, between the defending champions Wydad Casablanca and Al-Ahly. The Egyptian team managed to deprive Wydad Casablanca of securing its fourth title and second consecutive title. Moreover, TP Mazembe and El Zamalek SC managed to win the CAF Champions League title five times each.

Large market value discrepancies from European leagues  

A large discrepancy can be easily recognized between African clubs and European clubs. In fact, the market value of the most valuable attacker and player in the Confederation of African Football , Victor Osimhen, stands at 120 million euros which is already higher than the market value of the most valuable club on the continent. Manchester City FC, the most valuable European football club had a market value of around 1.39 billion euros, while Arsenal followed with close to 1.32 billion euros as of June 2023.

As of 2023, Niger registered the agricultural sector's highest contribution to the GDP in Africa, at over 47 percent. Comoros and Ethiopia followed, with agriculture, forestry, and fishing accounting for approximately 37 percent and 36 percent of the GDP, respectively. On the other hand, Botswana, Djibouti, Libya, Zambia, and South Africa were the African countries with the lowest percentage of the GDP generated by the agricultural sector. Agriculture remains a pillar of Africa’s economy Despite the significant variations across countries, agriculture is a key sector in Africa. In 2022, it represented around 17 percent of Sub-Saharan Africa’s GDP, growing by over two percentage points compared to 2011. The agricultural industry also strongly contributes to the continent’s job market. The number of people employed in the primary sector in Africa grew from around 197 million in 2011 to 230 million in 2021. In proportion, agriculture employed approximately 43 percent of Africa’s working population in 2021. Agricultural activities attracted a large share of the labor force in Central, East, and West Africa, which registered percentages over the regional average. On the other hand, North Africa recorded the lowest share of employment in agriculture, as the regional economy relies significantly on the industrial and service sectors. Cereals are among the most produced crops Sudan and South Africa are the African countries with the largest agricultural areas. Respectively, they devote around 113 million and 96.3 million hectares of land to growing crops. Agricultural production varies significantly across African countries in terms of products and volume. Cereals such as rice, corn, and wheat are among the main crops on the continent, also representing a staple in most countries. The leading cereal producers are Ethiopia, Nigeria, Egypt, and South Africa. Together, they recorded a cereal output of almost 100 million metric tons in 2021. Additionally, rice production was concentrated in Nigeria, Egypt, Madagascar, and Tanzania.

19 of the 20 countries with the lowest estimated GDP per capita in the world in 2023 are located in Sub-Saharan Africa. Burundi is believed to have a GDP per capita of just 326.84 U.S. dollars - for reference, Luxembourg has the highest GDP per capita in the world, at almost 130,000 U.S. dollars, which is around 400 times larger than that of Burundi (U.S. GDP per capita is over 250 times higher than Burundi's). Poverty in Sub-Saharan Africa Many parts of Sub-Saharan Africa have been among the most impoverished in the world for over a century, due to lacking nutritional and sanitation infrastructures, persistent conflict, and political instability. These issues are also being exacerbated by climate change, where African nations are some of the most vulnerable in the world, as well as the population boom that will place over the 21st century. Of course, the entire population of Sub-Saharan Africa does not live in poverty, and countries in the southern part of the continent, as well as oil-producing states around the Gulf of Guinea, do have some pockets of significant wealth (especially in urban areas). However, while GDP per capita may be higher in these countries, wealth distribution is often very skewed, and GDP per capita figures are not representative of average living standards across the population. Outside of Africa Yemen is the only country outside of Africa to feature on the list, due to decades of civil war and instability. Yemen lags very far behind some of its neighboring Arab states, some of whom rank among the richest in the world due to their much larger energy sectors. Additionally, the IMF does not make estimates for Afghanistan, which would also likely feature on this list.

South Africa had the highest inequality in income distribution in 2023 with a Gini score of 63. Its South African neighbor Namibia followed in second. The Gini coefficient measures the deviation of the distribution of income (or consumption) among individuals or households within a country from a perfectly equal distribution. A value of 0 represents absolute equality, a value of 100 absolute inequality. All the 20 most unequal countries in the world were either located in Africa or Latin America & The Caribbean.