Managing African Wealth (Podcast)

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Fieldfisher

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Fieldfisher is a European law firm known for its market-leading practices in technology, financial services, energy, and life sciences. With a focus on client collaboration, innovation, and social responsibility, the firm integrates cutting-edge legal technologies and provides tailored solutions. Fieldfisher’s global presence spans Europe, the US, China, and international partner firms, allowing seamless cross-border services. Recognized for excellence, Fieldfisher holds high rankings in dispute resolution, M&A, and IP, and has a strong commitment to environmental, social, and governance (ESG) leadership. The firm operates with over 1,800 professionals across 23 offices in 12 countries.

In Fieldfisher's Africa Week 2024 podcast, Paul Agbaje discusses the rise of family offices in Africa, highlighting wealth management challenges, opportunities, and intergenerational concerns for affluent African families.
Worldwide Wealth Management

In this episode of Fieldfisher's Africa Week 2024 podcast, hosted by Danjuma Mshelia, from Fieldfisher's Private Client team, Paul Agbaje, the Head of Africa at SingAlliance, discusses managing African wealth through the lens of family offices.

Paul explains the concept of a family office, a private company managing a wealthy individual or family's financial affairs, emphasising its importance due to the unique needs and requirements of wealthy families. There has been a noticeable increase in affluent African families adopting family offices over the past five to ten years, a trend more established in Western Europe and North America but relatively new in Africa.

Paul highlights the minimum net worth for setting up a family office, which is generally around $50 million. He identifies unique challenges African clients face, such as relying on non-local professionals, which can drive up costs and limit local knowledge.

The conversation shifts to opportunities in Africa, noting the region's untapped potential and rising numbers of millionaires, pointing to sectors like fintech, ecotourism, and green tech.

Paul stresses that African family offices are well-placed to seize local investment opportunities effectively. Intergenerational wealth transfer emerges as a key concern for African families, and there's a growing openness to involving younger generations in wealth management without burdening them with direct management responsibilities. Impact investing and philanthropy are also becoming increasingly significant, particularly among younger generations who focus more on social impact.

The podcast also explores the potential of family offices and the role advisors play in fostering their growth. Both Danjuma and Paul agree on the necessity of education to better inform African families about setting up family offices. They emphasise leveraging networks of advisors and professionals for effective wealth management. Paul closes by expressing hope for more African family offices, driven by local representation capable of adding value.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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