The technological expansion will improve the efficiency of African businesses in the coming years. Increased use of technology in businesses will also increase the number of rich individuals in Africa.
According to Faizal Bhana, director for the Middle East, Africa and India at state-funded Jersey Finance, rich people in Africa will get wealthier from technology boost.
The first generation became entrepreneurs in their teens and twenties, and are now in their sixties and seventies. The second generation will take over businesses from the founders. The wealth transfer from the older generation to a new generation that is more educated and tech-savvy will increase the net worth of individuals in Africa over the next 5 to 10 years. The new generation has increased the use of technology in businesses.
Entrepreneurs in African countries
There is a new generation of tech and fintech entrepreneurs in African countries, especially in Nigeria, Kenya and South Africa. Due to technological expansion, there will be a lot more entrepreneurs in Africa in the coming years.
Bhana said, “The impact that technology is having on the African continent is unprecedented.”
Private wealth in Africa
According to Bloomberg, private wealth in Africa is estimated at $2.1-trillion. According to the Africa Wealth Report 2022, private wealth will increase by 38 per cent in the next 10 years. Half the wealth is in five African countries: South Africa, Egypt, Nigeria, Morocco and Kenya. These 5 countries are also great for entrepreneurs in 2022.
South Africa tops the local ranking for the best African countries for entrepreneurs in 2022. South Africa also has a highly-skilled workforce, competitiveness and openness to business. Nairobi, Kenya’s capital, is best known for Food Tech, Transportation, Technology, and Energy businesses. Lagos, the largest city in Nigeria, is famous for its E-commerce business. Nigeria is also supportive of private entrepreneurship and public-private partnerships.