It cannot be denied that Africa has its share of social and economic problems, but the will to tackle these challenges and promote sustainable change can be found throughout the continent and prevails in every sphere of society. No better example of this can be found than in the 2016 Wealth Report by Frank Knight, which reveals that Africa’s current 2 620 ultra-high-net-worth individuals (worth a collective value of USD2 Billion in assets) plan to increase their contribution to philanthropy.
More than simple charity, philanthropy attempts to tackle a problem at its root cause. A global trend, it is now being followed by increasingly more ultra-high-net-worth individuals (UHNWIs) on the continent – especially those who made their wealth in the digital era – with as many as 65% of wealth managers in Africa reporting that “giving back” has become important to their clients.
The reasons for this vary; some are driven by personal fulfilment, some by a sense of duty, while others are inspired by the desire to leave a legacy or a combination of all three. Whatever the motivation, what matters, however, is that Africa’s wealthy are on the lookout for sustainable ways to use their wealth to solve the problems plaguing the continent.
Phillip Faure, Head of Philanthropy for Standard Bank Wealth and Investment, says that the wealth concerns of his clients are now accompanied by the strong need to improve the lives of others. He explains that Africa’s UHNWIs on the continent want to leave lasting legacies that will go beyond their families and businesses, as evidenced in the growing number of philanthropic projects and plans.
But, Faure notes that preserving wealth to make an impact in the future calls for highly sophisticated and specialised skills; whether giving back through signature projects, start-up incubation or quasi-commercial models, all have financial structures that require ongoing management and reporting.
In such cases, an institution like Standard Bank Wealth and Investment fits the bill. With a long and successful track record of helping our clients formulate financial plans to reach their long-terms dreams and ambitions, we are perfectly experienced and skilled to help Africa’s wealthy move their communities, and thus the continent, forward.