Lance Lawson, Business Development Consultant at Sovereign Group
Africa is undergoing a wealth boom. With an astounding $2.5 trillion in investible wealth, the continent is on the brink of an economic transformation. According to the 2024 Africa Wealth Report, Africa will see a 65% surge in its millionaire population over the next decade. Mauritius and Namibia are among the top 10 propellants of this wealth explosion, with Mauritius expected to see 95% growth in its millionaire population and Namibia 85% by 2033.
While rapidly emerging as ultra-wealthy hubs in their own right, Mauritius and Namibia also offer significant benefits as investment migration pathways for high net-worth individuals (HNWIs) – particularly when it comes to utilising property as an investment opportunity.
Lance Lawson, Business Development Consultant at Sovereign Group, says that Namibia and Mauritius are not just emerging as wealth hubs due to their own economic growth but also because of their strategic policies that favour foreign investment. “Their political and economic stability, coupled with their relative affordability and proximity makes these countries highly attractive to South African HNWIs looking to invest in sub-Saharan Africa.”
Luxury real estate is a popular investment choice in these destinations, offering potential income, capital appreciation, and flexibility for families with members in different locations. Essentially, neither country imposes capital gains tax and, while Namibia has no estate duty, Mauritius recognises trust law and allows estates to be structured accordingly.
Mauritius: The gateway to global mobility
Mauritius has long been one of Africa’s most business-friendly countries, thanks to its steady economic growth and favourable policies. In addition, it is one of only two African nations, alongside Seychelles, that allows its citizens to access more than 50% of global GDP without a visa. Mauritius also has multiple residency by-investment opportunities depending on the client’s needs, one of these opportunities includes purchasing a residency through a minimum capital investment of $375,000 which provides the right to live, work, and retire on the island.
Buying property in Mauritius, particularly through a government-approved scheme such as the Property Development, Integrated Resort, or Real Estate Scheme, provides a way to invest in the growing economy and enjoy tax gains, and can be facilitated via companies, trusts, and foundations.
Namibia: A Rising Star
Namibia’s trust law offers unique opportunities for holding assets while providing tax advantages – with the sole proviso being that the investment property is not agricultural land. The Namibian Income Tax Act favours trusts, and the absence of donations, capital gains, and estate taxes makes it an ideal location for international structures.
Foreign investors are protected under the Namibian Foreign Investment Act, which ensures equal treatment for foreign and local investors. Foreign investors with a ‘Certificate of Status Investment’ can repatriate their capital and benefit from a simplified process of obtaining an employment permit. Additionally, Namibia has formalised export processing zones, which offer competitive pricing advantages to export-oriented manufacturers, and are exempt from corporate income tax, duties and VAT on machinery, equipment and raw materials imported into Namibia for manufacturing purposes.
Namibian residence by investment requires a minimum capital investment of $365,000, and grants the right to live, work, and study there without restriction.
Whether you’re looking offshore to buy property, own a business, hold assets in trust, retire or plan your estate, or gain residency or citizenship, it’s essential to seek professional guidance. Lawson stresses that spreading wealth across jurisdictions can help manage risk, access a wider range of investments, and mitigate the impact of localised political or economic instability – and that it need not be a daunting process: “Working with advisers and consultants who understand your financial goals and can match them with the most suitable offshore structures, and the most favourable legal and taxation regimes ensures that you can diversify your investments with confidence.”