Africa: Leading the Way in Wealth Transformation
By Emmanuel Allotey
Africa is a true example of the old adage “Rags to Riches.” Despite accounting for 16% of the world’s population, Africa only accounts for 1% of total worldwide wealth a proportion that was previously non-existent. Labelled a poor continent, Africa is now thriving and producing some of the fastest growing economies in the world and creating with it the rise of the largest emerging affluent population in the next 20 years.
Africans have become wealthy through opportunities created by business ownership, formal employment, entrepreneurship among others. Financial Institutions have accelerated the pace of wealth creation in Africa. The number of financial institutions in Africa has exponentially increased in the last 50 years.
From International Banks to local investment institutions there is intense activity in the financial services industry with Africans emerging as the winner. Financial service providers have evolved from providing bank accounts to offering access to offshore investment opportunities. Financial Institutions are the secret behind the wealth transformation in Africa.
The number of Individuals with bank accounts or access to financial services has more than doubled in the last 15 years. Africa is leading the way in wealth transformation driven by Financial Institutions empowering individuals to Save, Borrow, Invest and Protect their wealth.
The most basic way to acquiring wealth is Saving. Savings accounts exceed the number of ordinary or transactional accounts across most markets in Africa. The principle of savings through a financial institution is put money away and over time with compounded interest it multiplies.
Previously, out of ignorance Africans were known to keep money at home or hidden in beds without enjoying the benefit of compounded interest that causes their money to grow. Financial institutions now offer numerous saving account types; fixed deposits, regular savings, annuity savings the options are endless, but the objective is the same – grow your wealth by putting money away and receiving interest.
The expert way to acquire wealth is through Investing. The introduction of formal Investment structures such as a local Stock Exchange House, facilitated the ecosystem for the creation of wealth across Africa through company ownership. Today South Africa is one of the wealthiest nations in Africa with the Johannesburg Stock Exchange the largest stock exchange in Africa.
In Botswana, the public offering of Botswana Telecommunication shares on the Botswana Stock Exchange is an example of a formal investment vehicle to acquire wealth. Financials institutions now offer diverse investment plans and options for the individual looking for ways to growth their wealth.
Africa as continent will improve its position in worldwide Wealth as more of its inhabitants leverage the opportunities generated by Financial Institutions to create Wealth – Visit your nearest Financial Institution and explore how you can grow your Wealth.