Private Wealth Management incorporates financial planning, portfolio management, and other aggregated financial services for individuals to solve or enhance clients' financial goals as high-net-worth individuals often lack the time or ability to manage their own finances.

Private Wealth Management is becoming increasingly popular to help plan and facilitate retirement or illness, reduce taxes and unnecessary spending, growth, and preservation of wealth with tailored solutions.

Wealth advisers mostly work on a fee basis and help create investment mandates that reflect client objectives and risk tolerance — charging clients a percentage of the assets under management – which reduces conflicts of interest.

In Africa, managing wealth is being utilized as a tool for ensuring a legacy for future generations. However, in some cases African families are behind on this compared to families in the west.

A Growing Business Opportunity

Africa's fast-growing population and markets present important opportunities for businesses in an environment of slowing global growth. At the same time, greater innovation and investment from businesses is essential to meet Africa's unfulfilled demand for goods and services, close the gaps in its infrastructure, create jobs, and decrease poverty.

As The Brookings Institution details, more than 400 companies earn annual revenues of $1 billion or more —and are, on average, both faster growing and more profitable than their global peers. An AfrAsia Bank and New World Wealth's 2019 Africa Wealth Report details how the total wealth in Africa over the past decade has increased by 14 percent. Notably, there are twenty-three billionaires living in Africa, and about 42 percent of total wealth in Africa is held by 140,000 high net-worth individuals, defined as those with assets of at least $1 million.

The Council on Foreign Relations provides, that there is significant potential for businesses to play a transformative role in solving the continent's biggest challenges – and Ghana's wealth managers are increasingly doing just that.

Impact Investing Helping Power Africa's Wealth Management Boom

John-Paul Iwuoha explains how Africa's new rich are not just excited about money but also passionate about creating value in the lives of others. Where the bulk of Africa's "old school" millionaires made their money from resource extraction, Africa's new wave of entrepreneurs are more interested in creative problem solving. Many of these entrepreneurs are focused on Crowdfarming, Waste, Drones, Affordable Housing, Automotives, Local Products for Export, Startup Funding, Fintech, Low-cost private schools, Urban logistics, and Healthcare services.

Africa's new generation of millionaires see that helping to solve the continent's problems will help unlock wealth, jobs, and prosperity for the continent.
With the help of well-informed wealth managers, Africa's millionaires will be rewarded by the continent's opportunity to make a lot of money, while doing a lot of good at the same time.

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