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Kenya, Tanzania Lead EAC in Creating Billionaires


 By Staff Reporter, EABlog

About 99 billionaires were living in Tanzania last year, placing the country at number two in a ranking after Kenya in East Africa based on super wealthy persons; the Africa Wealth Report for 2019 published this month by Mauritius based AfrAsia Bank says.

The report ranked South Africa with 2,169 billionaires, Egypt (932) Nigeria (531) and Kenya (356). In another development, Tanzania has shovelled Kenya and other East African countries for having a single billionaire worth $1bn and above. In this category, Kenya and other East African countries has failed to have a person with the said wealth.   

This means, Tanzania has 90 billionaires worth $10 million and above, eight billionaires (worth $100bn and above) and one billionaire worth 1bn and above.      
In terms of wealthiest African countries, Tanzania has scooped number nine with $57bn.  South 

Africa ($649bn) is toppling the list followed by Egypt ($303bn), Nigeria ($225bn), Morocco ($114bn), Kenya ($93bn), Ghana ($59bn) and Ethiopia ($ 57bn)

According to the report, total wealth held in Africa currently amounts to around USD 2.2 trillion. South Africa tops the chart of wealthiest countries in the continent followed by Egypt and Nigeria.

The report projects a 35% rise in total private wealth held in the continent over the 10 years reaching USD 3.0 trillion by 2028. The key factors contributing to this wealth growth include: security and safety, strong ownership rights, strong economic growth, a well- developed banking system, ease of investment and low tax rates.   

Tanzania has achieved high growth rates based on its vast natural resource wealth and tourism with GDP growth in 2009-17 averaging 6%-7% per year. Tanzania used fiscal stimulus measures and easier monetary policies to lessen the impact of the global recession and in general, benefited from low oil prices.

Tanzania has largely completed its transition to a market economy, though the government retains a presence in sectors such as telecommunications, banking, energy, and mining.

The economy depends on agriculture, which accounts for slightly less than one-quarter of GDP and employs about 65% of the work force, although gold production in recent years has increased to about 35% of exports.  

The financial sector in Tanzania has expanded in recent years and foreign-owned banks account for about 48% of the banking industry's total assets. Competition among foreign commercial banks has resulted in significant improvements in the efficiency and quality of financial services, though interest rates are still relatively high, reflecting high fraud risk. Banking reforms have helped increase private-sector growth and investment.

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