N$182 070 per person
Figures can be deceiving, especially when it comes to the average wealth of Namibians, who should in theory have a whopping N$182 070 each at their disposal.
Namibia, with a population of just over two million, is one of the wealthiest countries in Africa per capita, but this wealth is mostly exclusively in the hands of its 3 300 millionaires and 120 multi-millionaires.
According to Namibia's so-called wealth per capita, which is the third highest on the continent, every single individual in the country should have US$12 600 (N$182 070). Wealth per capita refers to the average wealth of a person living in a country, but in the case of Namibia it has for years been a thorn in its side.
This is because of the classification of the nation as an upper middle-income country, while severe social imbalances exist and wealth is concentrated in the hands of the few.
In fact, global statistics released recently indicate that food insecurity affected one million Namibians by last year, compared to 500 000 in 2006.
This is in stark contrast to the picture of per capita wealth portrayed in the recently released Afrasia Bank Africa Wealth Report, which said at the end of last year Namibia's per capita wealth had increased from N$132 600 in 2015 to N$182 070.
The average wealth per capita globally was N$411 023.
While Namibia's wealth per capita is still significantly lower than the world average it is much higher than the African average of approximately N$28 932.
The report says a country's wealth includes all individuals that are working or living in that country, including expats.
However the report seems to be skewed when taking into account the high levels of inequality presently in Namibia.
Known as an upper middle-income country where rampant unequal wealth distribution exists, Namibia has over the years struggled to formulate workable policies to ensure that inequality is alleviated or even reduced. Statistics by the Namibian Statistics Agency (NSA) show that 29.9% of the country's population is unemployed, while there is a 26.9% poverty incidence and a large portion of the population is said to remain vulnerable.
Skewed wealth distribution because of an historical legacy of race politics and legislated apartheid, has been a favourite whipping boy of President Hage Geingob for many years.
He has for years derided the simple arithmetic used to reach the conclusion, that Namibia is an upper middle-income country, which he said is “baffling”.
“What this simplistic approach hides is the fact that the wealth is concentrated in the hands of just 5% of the people,” he said as far back as 2013, adding the remaining 95% are poor, “as poor as anywhere else in the third world”.
According to the wealth report, Mauritians (N$468,149) are the wealthiest individuals in Africa per capita, followed by South Africans (N$186 189 per capita).
The report also measured the total wealth of African countries and Namibia did not even make it onto the top ten list.
The report says total wealth refers to the private wealth held by all the individuals living in each country. It includes all their assets such as property, cash, equities, business interests less any liabilities, while government funds were excluded.
Windhoek was ranked as one of the major cities, with U$S13 billion in total wealth.
It said that Namibia's wealth has grown by 30% from 2007 to 2017 and since 2016 its wealth has increased by 10% growth.
Last year the report indicated there were 3 300 millionaires and 120 multi-millionaires with a total wealth of U$10 million or more each in Namibia, with half of them residing in Windhoek.
The research found that a total of 3 300 high-net-worth individuals (HNWIs) are living in Namibia and that these individuals have increased by 21% since 2006. High-net-worth individuals are defined as individuals with net assets of U$1 million or more.
HNWIs in Namibia grew by 6% in 2016 alone and it was predicted that within the next ten years they will grow by another 50%.
Also 120 multi-millionaires call Namibia home. In comparison, in South Africa there are 2 130 multi-millionaires and 40 400 HNWIs.
Windhoek came in 14th out of the top African cities where the super-rich live, with 1 400 HNWIs and 60 multi-millionaires.
It was forecast that HNWIs in Windhoek will increase by 50% over the next ten years.
ELLANIE SMIT
According to Namibia's so-called wealth per capita, which is the third highest on the continent, every single individual in the country should have US$12 600 (N$182 070). Wealth per capita refers to the average wealth of a person living in a country, but in the case of Namibia it has for years been a thorn in its side.
This is because of the classification of the nation as an upper middle-income country, while severe social imbalances exist and wealth is concentrated in the hands of the few.
In fact, global statistics released recently indicate that food insecurity affected one million Namibians by last year, compared to 500 000 in 2006.
This is in stark contrast to the picture of per capita wealth portrayed in the recently released Afrasia Bank Africa Wealth Report, which said at the end of last year Namibia's per capita wealth had increased from N$132 600 in 2015 to N$182 070.
The average wealth per capita globally was N$411 023.
While Namibia's wealth per capita is still significantly lower than the world average it is much higher than the African average of approximately N$28 932.
The report says a country's wealth includes all individuals that are working or living in that country, including expats.
However the report seems to be skewed when taking into account the high levels of inequality presently in Namibia.
Known as an upper middle-income country where rampant unequal wealth distribution exists, Namibia has over the years struggled to formulate workable policies to ensure that inequality is alleviated or even reduced. Statistics by the Namibian Statistics Agency (NSA) show that 29.9% of the country's population is unemployed, while there is a 26.9% poverty incidence and a large portion of the population is said to remain vulnerable.
Skewed wealth distribution because of an historical legacy of race politics and legislated apartheid, has been a favourite whipping boy of President Hage Geingob for many years.
He has for years derided the simple arithmetic used to reach the conclusion, that Namibia is an upper middle-income country, which he said is “baffling”.
“What this simplistic approach hides is the fact that the wealth is concentrated in the hands of just 5% of the people,” he said as far back as 2013, adding the remaining 95% are poor, “as poor as anywhere else in the third world”.
According to the wealth report, Mauritians (N$468,149) are the wealthiest individuals in Africa per capita, followed by South Africans (N$186 189 per capita).
The report also measured the total wealth of African countries and Namibia did not even make it onto the top ten list.
The report says total wealth refers to the private wealth held by all the individuals living in each country. It includes all their assets such as property, cash, equities, business interests less any liabilities, while government funds were excluded.
Windhoek was ranked as one of the major cities, with U$S13 billion in total wealth.
It said that Namibia's wealth has grown by 30% from 2007 to 2017 and since 2016 its wealth has increased by 10% growth.
Last year the report indicated there were 3 300 millionaires and 120 multi-millionaires with a total wealth of U$10 million or more each in Namibia, with half of them residing in Windhoek.
The research found that a total of 3 300 high-net-worth individuals (HNWIs) are living in Namibia and that these individuals have increased by 21% since 2006. High-net-worth individuals are defined as individuals with net assets of U$1 million or more.
HNWIs in Namibia grew by 6% in 2016 alone and it was predicted that within the next ten years they will grow by another 50%.
Also 120 multi-millionaires call Namibia home. In comparison, in South Africa there are 2 130 multi-millionaires and 40 400 HNWIs.
Windhoek came in 14th out of the top African cities where the super-rich live, with 1 400 HNWIs and 60 multi-millionaires.
It was forecast that HNWIs in Windhoek will increase by 50% over the next ten years.
ELLANIE SMIT
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