Wealthy business people from emerging markets are starting to pile up the cash to become global billionaires.
Although the net worth of billionaires from Africa is a mere $2.3 billion, many of the richest individuals on the continent have leapt to join the super wealthy in a short time, says a report by Forbes Insight and Societe Generale Private Banking.
The study looked at the fortunes of 250 super rich billionaires across the world.
The results showed emerging market entrepreneurs have quickly built multinational companies, but are struggling to establish global branding.
Forbes Insight suggests that many of billionaires are ready to make the leap to rely on technology rather than cheap labour and raw materials to make them value-added businesses rather than manufacturers.
Billionaire profile
The survey also disclosed that although only 6% of the largest 2,000 public companies are owned by emerging market billionaires, the countries considered as emerging economies are home to 14% of the world’s super rich.
Out of work, emerging economy billionaires enjoy sport, charitable work and politics.
The report also revealed:
- Billionaires are worth an average $2.8 billion each
- Three out of four billionaires made their own money
- Almost all are men (98%)
- The average wealth of the richest 20 people in Russia is $10.1 billion; $7.6 billion in the Middle East and $3.2 billion in Europe
Emerging economy billionaires are also open to wealth management, said the report, as they are money makers rather than money managers.
Many of the emerging billionaires are self-made entrepreneurs who took an opportunity at a time of political change.
Super rich and self-made
Many emerging market billionaires have made their fortunes within two decades – a great financial leap forward when many come from nations that had no super rich individuals until that time.
The catalyst that enabled many to build their wealth was change – either the fall of a government or a colonial power granting independence.
All the wealthy Russians who took part in the survey are self-made, and some point out that many of their parents felt a loss of stability in politics and the economy when the communists lost power.
Russia now has 95 billionaires, says Forbes, third in the world rankings behind the US and China.
Africa’s richest man – and the world’s richest black man – according to Forbes Insight, is Nigerian Aliko Dangote, who has a personal wealth of $12 billion. His money is based in commodities – mainly sugar production and refining.
Download the survey here https://www.privatebanking.societegenerale.com/en/forbes-insights-2013-uhnwi-survey/
