CAPE TOWN: Emerging countries are driving growth in the luxury sector.
The number of high net worth individuals in Africa is set to double in the next ten years, according to Knight Frank’s Wealth Report, finally making us part of the global luxury industry. So too is the demand for luxury goods sets to rise exponentially. “Recent sales and enquiries for multi-million rand yachts by millionaires, especially by dollar millionaires playing in the energy fields, reflect this trend,” says Derrick Levy, MD of Boating World, leading boating brokers, exporters and importers specialising in luxury motor-yacht market in Sub-Saharan Africa. “A recent sale of the prestigious, R25million 65 Fairline squadron yacht, the first of its kind to be sold through South Africa into Angola, is testimony to this, meaning we will see more and more luxury brands flooding our shores.”
Africa also leads the way in Knight Frank’s Luxury Hotspot research, which identifies the areas of growth for luxury brands over the next ten years. Ghana, SA, Nigeria, Kenya and Zimbabwe all appear in the top 10.
The number of Ultra-High-Net-Worth Individuals (UHNWIs) – those with more than US$30m or more in net assets – across the world has grown by 59% since 2003, but in Africa the increase has been 130% against the world average of 8.3%. This compares to 89% in Asia, 116% in the Middle East and just 44% in Europe. Data from the report suggests that by 2023 that number will further increase by 53% taking the number of UHNWIs in Africa to 2,858. The forecast 10-year growth in Africa’s wealthy billionaires is 52%. The report shows that Nairobi will lead the way with a 78% increase, followed by Marrakesh (60%), Johannesburg (41%) and Cape Town (37%).
Another interesting trend is the return of skilled young Africans to their African roots, leaving behind their highflying Fortune 500 positions in Europe to start giving back to Africa. Boating World has had a number of this type of clientele purchase luxury yachts, the 65squadron being the most recent.
Boating World are the South African agents for the prestigious Fairline and Riviera brand and are the leading boating brokers, exporters and importers specializing in luxury motor-yacht market in Sub-Shahara Africa. Importing boats from England, Australia and USA Boating World is synonymous with top-drawer luxury. www.boatingworld.co.za.