Africa’s spending power defies economic gloom

Phillip Faure, Global Head, Standard Bank Wealth image supplied

Phillip Faure, Global Head, Standard Bank Wealth image supplied

JOHANNESBURG, (CAJ News) – AFRICA’S growing spending power is projected to open doors to new opportunities over the next decade despite the economic gloom continuing to drag down the mood of investors.
This is according to a prominent wealth and investment adviser at one of the continent’s largest bank by assets and earnings.
Philip Faure, the Global Head: Wealth Advisory at Standard Bank Wealth and Investment, says continuing interest in Africa’s potential will lead to business growth and higher levels of employment, which drive wealth creation and in turn, consumerism.
“Discerning wealthy Africans are certainly seeking out the best as levels of wealth across the continent increase,” says Faure.
He says along with an increase in wealth comes an improvement in personal lifestyles with owning luxury goods a way of displaying wealth and success.
“This is quite normal as societies develop,” says Faure.
However, the challenge is to maintain this lifestyle over a lifetime.
“It is essential to keep perspective on how much needs to be saved and invested over the longer-term to achieve and maintain financial independence,” says Faure.
He points out Richemont-owned global luxury goods store, Mont Blanc, recently confirmed it is extending its reach in South Africa with a revamped 119m² boutique in Sandton, South Africa.
It will serve as the launchpad for further growth in the region.
According to Knight Frank Wealth Report 2016 a 54 percent growth rate in African dollar millionaires is expected between 2015 and 2025.
The last few years have been tougher, however, as the global total of dollar millionaires fell 3 percent between 2014-15. The decline was also 3 percent in Africa.
CAJ News

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