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.
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.
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
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.
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.
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.
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.
Copyright © 2017 WEALTH MANAGEMENT AND PRIVATE BANKING CONFERENCE. Positioning Wealth Management in Africa.