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Think Business holds the inaugural Private Banking and Wealth Management Forum.

The Private Banking  and  Wealth  Management Forum is  a timely  event  that  seeks  to  officially  initiate  the  conversation  around  wealth  management, the steady  year on year increase in  number  of  High Net Worth Individuals (HNWIs)  and  its  impact  on a  growing  wealth  management  industry.

Over  the  past decade, African  economies  have  experienced  exponential  economic  growth  not  only  leading  to  the  burgeoning  of  the  middle class  demographic  in  Africa, but  also  spurring  a  silent  and  steady  growth  of  HNWIs. By  definition, high  net worth  individuals  are  classified  as  persons  with  at least  USD 100 million  dollars  in  net worth  and  in  2015,  the  number  of  HNWIs  in  Africa  stood  at  145,000  with a  combined  wealth  portfolio  of  USD$ 1.392  trillion  dollars.

The  HNWIs  are  considered  a  sophisticated  demographic  class  that  is  quite  particular  in  their  financial  needs, therefore  this  has  spurred  immense  interest  in  the  private  banking  and  wealth  management  services  making  it a much  sought  after  financial  service  in  Africa. In  the  soon  to be launched  Think Business  Private Banking and Wealth Management Report, that  comprehensively  details  with  articulate  precision  the  emerging  trends  of  Africa’s  HNWIs,  market  trends, market  size, and  the  regional    distribution  of  these  HNWIs  assets.

The  report  shows  that  Africa’s  HNWIs  elicit  varying  prioritization  on  matters  wealth. 47.9  percent  of  Africa’s  HNWIs  prefer  to  work  with  a single  management  firm,  while  15.2  percent  prefer  to  work  with  several  multiple  firms.  In  addition  36.6  percent  seek  professional  advice  on  matters  regarding  their  wealth  while  30  percent  do  not  feel  the  need  to. In addition, 87  percent  of  the  individuals  are  optimistic  and  maintain confidence  in  their  ability  to  generate  wealth  in  the  future, 34  percent  are  focused  on  growth  while  33  percent  are  prioritized  on  preservation  of  the  wealth.

The  HNWI  have  diversified  their  business  interests into  a  variety  of  asset  classes. 26.5 percent  of  African  HNWI  have  their  assets  in  cash  and  cash  equivalent, 20  percent  in  real  estate, 19  percent  in  bonds  and  equity  stocks  and  18  percent  in  fixed income  securities.  Alternatives investments account for 17 percent of Africa’s HNWIs.

 

With an  estimated  34  percent  of  HNWI  focused  on  growth  of  assets  and  increasing  their  portfolios,  this  directly  impacts  the  choice  of  wealth  advisors  since  many  HNWIs  would  prefer  advisors  with  global  outreach  with  the  aim  of  taking  their businesses  global. North America, accounts  for  22  percent  of  the  group’s  business  interest  with  Africa  at  21  percent.  Other  major  regions  where  the  African  HNWI  reserves  interests  in  Middle-East, Asia Pacific, and Western Europe  counting  for  17 percent, 14  percent,  and  10  percent  respectively.

Among  the  speakers  at  the  Wealth Management Forum  to  be  held  at  Radisson Blu  is  Atiq Anjarwalla  Senior  Partner  at  Anjarwalla  and  Khanna  who  taps  into  over  25  years  experience  in  legal  practice  discusses  matters  inheritance  from  a  legal  perspective.  In  an  past  interview  with  Think  Business  Anjarwalla  elucidates  that  inheritance  matters  are  a major  source  of  family  strife,  challenges  that  if  left  unresolved  pose  significant  risk  to  the  wealth  with  attrition  being  the  imminent  consequence.

“At  Anjarwalla  and  Khanna  we  have  taken  the  initiative  to  advice  businessmen  and  emphasize  on  the  importance  of  preparing  a  succession  plan.  The  ultimate  aim  should  be  preserve  the  business  since  it  is  the  main  source  of  the  family’s  livelihood  and  making  them  understand  that  having  in place  a  succession  plan  ensures  longevity  of  the  business  beyond  them,” says Mr. Anjarwalla.

Present  at  the  Forum  will  be  Nairobi Securities Exchange CEO, Geoffrey Odundo who  discusses  enriching  wealth  management  in  Africa  through  the  Capital Markets. In a past  interview  with  Think Business,  Mr. Odundo, mentions  that  there  are  plenty  of  incentives  that  continue  to  endear  HNWIs  to  the  NSE ,  the  main  factor  being  the  ability  to  continue  creating  wealth  in  proportion  to  investment.

“The securities  market  has  largely  been an  avenue for  wealth  creation  because  of  a  variety of  factors. Firstly, there  is ease  of  entry  into  the  market  and  it  is  devoid  of unnecessary  sophistication  from  the  basic  requirements to  the  entry  level. Historically  an  analysis  of the stocks  that  have  come  through  IPOs,  8  out  of 10 entities  have  had  a capital  appreciation  on  their  secondary  listing,  with  price  value  at  IPO  price  scaling  by  over  300 percent in  a  short  period  of time. Therefore  over  time shares  provide  an  opportunity for  capital  appreciation  through price  growth  which  enjoys  tax benefits, bonuses  and  dividends. The  market  provides that  platform  to  ably  de-invest  wealth  across various  sectors  which  enables  an  investor  build  a  portfolio across  the  economic  sectors,  which  ensures  the  risk  is  diversified  and  enjoy  the  benefits  of  different  sectoral  strengths  as  opposed to just  a  single  line  of  investment,” states Mr. Odundo.

Kenya  is  the  4th  richest  country  in  Africa  in  terms  of  individual  HNWIs  only  trailing  South Africa, Nigeria  and  Egypt. The  country’s  HNWIs  volumes  increased  by  60  percent  from  5300  in  2015  to  8500  individuals  in  2016  and  the  number  is  expected  to  soar  to  15300  by  2025.
About Think Business Limited

Think Business Limited is a leading strategic research and competitive intelligence powerhouse, serving the information needs of investors, policy makers and business leaders through analysis, publication and communication of reliable, timely and objective business, markets, consumer and economic information. We are widely respected for our objectivity, balance, consistency and quality content.

Our products includes: The Banking Survey, Insurance Survey, Investments Survey, and the Think Business Magazine. We also hold annual awards in Banking, Insurance and Investments. Similarly, we offer services in Business Confidence Index, competitive intelligence, market research, conferences, training, workshops, and seminars.

Attracting and engaging High Net-worth individuals?

High Net-Worth individuals represent less than 1% of the world’s total population, but together

account for more than 40% of the world’s total wealth.

While initially mainly concentrated in western markets and in countries of so-called ‘old money’,

High Net-Worth individuals are now spread right across the globe. The rise of emerging markets

over the last few decades has triggered the development of a class of 'nouveau riche' in the Far

East and Middle East, to the East, South America as well as Africa where they have been

growing significantly in numbers.

HNWI’s are very sophisticated when it comes to their financial needs. They value the growth of

their investments, trust and security. Brands that have identified High Net-Worth individuals as a

growth opportunity often face a similar question: how to enter the crowded and complex world

of High Net-Worth individuals?

In attempt to answer this question, Investment and legal advisors, financial and tax

experts fund managers, asset managers, private banks and HNWI’s will congregate

at the first Africa private banking and wealth forum on 21 st &22 nd March at the

Radisson Blu Hotel Nairobi.

How Larry Ellison grew up in a poor Chicago

neighborhood before co-founding Oracle

Some of the richest people in the world were born into their wealth.

But many of them started with nothing, and through hard work, talent,

grit, and a bit of luck, managed to rise to the very top.

Larry Ellison was born on the Lower East Side of New York City. After he

contracted pneumonia as a baby, his mother was unable to care for him,

and instead sent him to live with her aunt and uncle on the South Side of

Chicago. He has never met his birth father, and didn’t even know he was

adopted until much later in life.

In 1977, he co-founded a database management company called Software

Development Laboratories. They changed the name to Relational

Software in 1979, and in 1982, it became Oracle. Today, Oracle has

annual revenues of around $38 billion, and Ellison has an estimated net

worth of $46.2 billion. He’s amassed all of the toys you’d expect from a

billionaire — planes, yachts, multiple mansions, and even an entire

Hawaiian island.

How best friends built AriZona Green Tea

Back in the 70s, a couple of Brooklyn friends started a beer distributor out of the back of an old VW bus. Two decades later, after seeing how well Snapple was doing they decided to try their hand at soft drinks and launched AriZona Green Tea. Today, AriZona teas are #1 in America and distributed worldwide. The friends still own the company.   

 

Growth of HNWI’s and the rising demand for private banking in Kenya.

The last decade has witnessed sharp upsurge in the number of High Networth Individuals (HNWI’s) in Africa, mostly fuelled by the economic renaissance.

There are approximately 8,500 high-net worth individuals (HNWIs) living in Kenya, with a combined wealth of 42 billion US dollars, according to Kenya 2016 Wealth Report. The number of HNWI’s rose by two per cent in Kenya grew by two percent in 2015. Globally, High Net-Worth individuals represent less than 1% of the world’s total population, but together account for more than 40% of the world’s total wealth.

The Africa private banking and wealth management Forum presents a great platform for an insightful discussion on private banking and wealth management at a time when Global HNWI wealth is projected to surpass the US$100 trillion mark by 2025.

The forum will be held on the 21st and 22nd March at the Radisson Blu Hotel in Nairobi.

Generational wealth transfer and the need for wealth management in Africa

Whereas Africa is known for its struggles against poverty, a growing number of African entrepreneurs is successfully creating and acquiring wealth through enterprise and hard work. A large part of Africa’s current economic upsurge is driven by family businesses while over half of global GDP is created by family businesses.

Some of the world’s wealthiest families have successfully transferred their wealth across the ages, thanks to carefully devised strategies. However, In Africa, very few family businesses survive more than three generations.

Most family businesses struggle or go down the drain immediately the 2nd generation takes over control due to lack of knowledge on managing and running huge multi-billion businesses. An estimated 70% of wealthy families lose their wealth by the second generation, and a stunning 90% by the third, according to the Williams Group wealth consultancy

Whilst building a formidable business empire may take immense hardwork and a lifetime sacrifice, it only takes a year or two of poor management to bring the business to its knees. Wealth preservation and generational wealth transfer requires a clear, fixed, purposeful family governance structure that determines how the legacy is passed on.

The upcoming Africa private banking and wealth management Forum could build a discussion around to address the challenges present in the current wealth management landscape. The forum will be held on the 21st and 22nd of March at the Radisson Blu Hotel Nairobi Kenya.

Key note speakers profile for the wealth management and private banking forum 2017

Mr. Ochieng Oloo

Founder & CEO of Think Business Limited

Ochieng is the Founder and CEO of Think Business Limited a media, strategic research and competitive intelligence company based in Nairobi. He is very experienced in research, financial analysis, competitive intelligence, business writing and publishing. He specializes in banking, insurance and investment. He is the publisher of the annual Kenya Banking Survey (15 years), the annual Kenya Insurance Survey (8 years) and the annual Kenya Investment Survey (5 years). He also organizes and hosts leading industry awards for these same sectors (for more than 10 years). He is a well-known publisher and journalist in Africa. He has authored numerous articles for the local and international media. He has been an editor and publisher of several business publications. He was named Barclays Bank Kenya Business Journalist of the Year 2001. He started his career as a business writer with a local daily national newspaper in 1992 and later founded a company known as of Economic Intelligence Limited, that published the monthly Market Intelligence Magazine. In 1999, he was one of the 15 Kenyans who won a USAID/Public Law Institute scholarship to the Les Aspin Centre for Government in Washington DC in recognition of his leadership roles. He has also attended courses at the University of South Carolina, USA and SolBridge Business School, South Korea. Mr. Oloo holds a Bachelor of Arts (Hons) degree in Economics from Moi University, Kenya and a MBA from the United States International University- Africa

Mr. Charles Omanga

Managing Principal at Horizon Africa Capital Limited

Charles is a career corporate and investment banker with proven experience and capability in driving businesses’ profitability, executing complex corporate and project finance transactions across several multi-national banking institutions. During his time at Horizon, Charles has executed transactions in Power, Oil & Gas, Real Estate and FMCG businesses. Charles has significant experience in Corporate & Project Finance having served as Head of Corporate Banking at CFC Stanbic Bank, Head of Public Sector & Trade Finance Barclays Bank Kenya. His firm specialises in Structured Debt & M&A Advisory.

Charles holds a MBA from the University of Leicester.

Mr. Sandeep Raichura

C.E.O Alexander Forbes Group in Kenya

Sundeep is a qualified actuary and Chief Executive Officer of the Alexander Forbes Group in Kenya. He has close to 30 years experience in pensions and investment consultancy work gained both in the UK and Kenya. He has been at the forefront of the pensions debate in Kenya and over the last almost two decades has been involved and contributed to all aspects of the pension conversation in Kenya ranging from thought leadership, pension reform, regulatory enhancement, product innovation, pension scheme re-engineering work and investment.

Sundeep has an almost evangelical passion to sensitise Kenyans on the need to plan and save for their retirement and breakaway from the cycle of successive generations of Kenyans not saving. By being at the forefront of creating awareness and promoting financial literacy.

Sundeep has and continues to contribute to a mindset shift from a myopic consumption to a more saving culture in our country in which people understand the importance of financial security. He also has extensive research interests and has written papers on several areas of actuarial and investment research. He is a regular speaker at conferences and seminars on pension, investment, social security and health care matters. He is a keen Rotarian, an avid reader and enjoys chess. He is married with two daughters.

Mr. Vimal Shah

C.E.O Bidco Africa

Vimal Shah is one of Kenya and East Africa’s eminent and most respected business leaders. Together with his father and brother, Mr. Shah has transformed Bidco from a humble soap manufacturing enterprise into a Fast Moving Consumer Goods (FMCG) behemoth. Bidco is presently East Africa’s leading manufacturer of edible oils and hygiene and personal care products with over 40 brands and a footprint in 18 African countries.

Vimal holds a BSc. Business Administration from United States International University – Africa.

Vimal Shah holds many public offices. He is a member of the 3GF (Global Green Growth Fund) Advisory Board and the Tony Elumelu Foundation Advisory Board. Until April 2015, he was the Chairman of the Kenya Private Sector Alliance-the apex private sector body in Kenya, and is a former Chairman of the Kenya Association of Manufacturers and the East African Business Council.

He is a recipient of multiple awards and accolades. Vimal was the 2012 recipient of the East African Entrepreneur of the Year award awarded by All Africa Business Leaders Awards (AABLA) in partnership with CNBC Africa and Forbes Africa. In recognition of his contribution to national development, Former President Mwai Kibaki awarded him the ‘First Class: Chief of the Order of the Burning Spear (CBS) in December 2011-the highest national honour for a private citizen in Kenya.

In 2008, the Kenya Institute of Management awarded him the CEO of the Year award with BIDCO winning the Company of the year award. He was ranked the 3rd East Africa Business Leader of the Future and 5th Most Respected Chief Executive Officer in East Africa in 2002. He was named the Professional Manager of the Year 2001 and winner for Outstanding Executive support for IT in 2001.

In 2015, KCA University awarded him an honorary PhD for his contribution to the growth of entrepreneurship in Kenya. Also in 2015 he was named Oshwal Entrepreneur of the Year in the first ever Oshwal Awards.

In May 2016, Mr. Shah was installed as the chancellor for Jaramogi Oginga Odinga University of Science and Technology.

Under his leadership Bidco has received over 30 corporate awards in 15 years across various domains: energy management, business leadership, ICT and manufacturing.

Shah is regarded as one of Africa’s most distinguished and visionary business leaders and was named as a finalist in the Ernst & Young Entrepreneur of the Year 2011, a position he held together with his brother and business partner, Tarun Shah. He is a much sought-after speaker and mentor on entrepreneurship, leadership and manufacturing and has given talks all over the world.

He is a Fellow of the Kenya Institute of Management, a Fellow of the Marketing Society of Kenya and the Institute of Certified Public Secretaries of Kenya.

Vimal is married to Manda Shah and they have one son named Soham currently 16 years old.

Vimal is an avid reader and his favorite subjects include philosophy, spirituality, leadership, innovation, business excellence and mentoring.

Edwin H. Dande, MBA.

Managing Partner, C.E.O Cytonn Investments Management Ltd


Edwin has over 15 years of diversified financial services experience spanning investment banking, private equity, investment management, and real estate in global and regional financial services brands such as KPMG, former Lehman Brothers, Bank of America Securities / Merrill Lynch, and Britam Asset Managers. He holds a MBA, Finance Major from the Wharton School University of Pennsylvania and Bachelor of Science Degree in Accounting from the Monmouth University. He is also a Certified Public Accountant.

Mr. Geoffrey Otieno Odundo

 

C.E.O Nairobi Securities Exchange Limited

Geoffrey is the Chief Executive of the Nairobi Securities Exchange Limited (NSE). He is an accomplished Investment Banker has been in the financial services sector for the last 24 years, 17 of which have been in the Capital Markets in various senior roles in asset management, corporate finance and securities trading. Prior to his appointment to the NSE, Mr. Odundo was the Managing Director and Chief Executive Officer of Kingdom Securities Limited. He was instrumental in the setting up of Co-op Trust Investment Services, Co-op Consultancy Services Limited and Kingdom Securities Limited. Mr Odundo has advised on a number of corporate finance mandates in both the public and private sectors; he has also managed key mandates in the asset management industry. Mr. Odundo has contributed to the growth of the Capital Markets in his previous role in the Kenya Association of Investment Banks, the Kenya Bureau of Standards and on the Board of the Nairobi Securities Exchange. He is currently a Director of the Central Depository and Settlement Corporation Limited (Ltd). Mr. Odundo holds a Master’s Degree in Strategic Management from the United States International University (USIU) and a Degree in Mathematics and Economics.


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