2024 Recap of the African Family Office Ecosystem

The year 2024 marked a pivotal chapter for the African family office ecosystem. Across the continent, family offices emerged as powerful enablers of wealth preservation, impact investment, and economic development. Ultra-high-net-worth individuals (UHNWIs) and family businesses increasingly recognized family offices as indispensable tools to navigate Africa’s dynamic economic and investment landscape.

This recap captures the defining moments of 2024, the key trends shaping the ecosystem, and lessons learned. It also looks ahead to 2025, spotlighting the family office advantage and why stakeholders—from UHNWIs to private equity and venture capital fund managers—should align themselves with this growing force.

Defining Moments of 2024

1. Record Growth in African Family Offices

The African Wealth Report 2024 revealed that there are currently 135,200 high-net-worth individuals (HNWIs) with liquid investable wealth of USD 1 million or more living in Africa, along with 342 centi-millionaires, and 21 dollar billionaires. COnsequently, the number of family offices on the continent grew by over 15% compared to 2023. This surge was driven by increased demand for bespoke wealth management solutions and the rise in generational wealth transfer among African UHNW families. Key markets such as Nigeria, South Africa, Kenya, and Egypt experienced a notable uptick in family office setups. Read full report here: https://www.henleyglobal.com/publications/africa-wealth-report-2024

2. Focus on Impact Investing

African family offices played a leading role in addressing critical social and environmental issues. In 2024, a Lagos-based family office significantly contributed to renewable energy initiatives by investing in projects that brought solar power to rural communities. This investment aimed to enhance energy access, promote sustainability, and support economic development in underserved areas.

Family offices, which manage the wealth and investments of high-net-worth families, have increasingly focused on impact investing—allocating capital to projects that generate positive social and environmental outcomes alongside financial returns. In Nigeria, several family offices have directed funds toward renewable energy projects to address the country's energy access challenges.

For instance, All On, a Shell-funded impact investment company based in Lagos, has invested in Salpha Energy Nigeria to scale the company's solar home systems for low-income households and small businesses. All-On

Additionally, InfraCredit, a specialized local currency infrastructure credit enhancement facility, secured a US$30 million risk-sharing and blended local currency co-financing facility from British International Investment to support decentralized renewable energy projects in Nigeria. This initiative is projected to enable over 57,000 new energy connections and increase renewable energy capacity by 20.1 MWp, reaching 564 communities. Infracredit

These investments reflect a broader trend among family offices and private investors in Nigeria and across Africa, recognizing the potential of renewable energy to drive sustainable development, improve living standards, and create economic opportunities in rural areas.

By supporting renewable energy projects, family offices not only contribute to environmental sustainability but also play a crucial role in bridging the energy access gap, fostering inclusive growth, and enhancing the quality of life for underserved populations.

Similarly in East Africa, family offices have been instrumental in supporting agritech startups that address food insecurity. For example, Newtown Partners, the family office of entrepreneurs Llew Claasen and Vinny Lingham, has invested in agritech ventures through partnerships like the one with AlphaMundi Group, which targets SMEs in sustainable agriculture in East Africa. Proparco

Additionally, Renew Capital, a pan-African investment firm backed by high-net-worth individuals and family offices, has invested in Kenyan agritech startup Farm to Feed to help scale its operations and reduce food loss. Empower Africa.

These collaborations highlight the growing alignment of wealth management with sustainable development goals in the region.

3. Generational Leadership Transitions

The continent witnessed significant generational leadership changes within family offices. More millennial and Gen Z family members stepped into decision-making roles, advocating for tech-enabled operations and ESG-aligned investments. This transition also sparked conversations around financial literacy and succession planning, ensuring smooth leadership handovers.

4. Integration of Technology and Data Analytics

2024 saw the adoption of advanced technology solutions in family offices. Artificial intelligence (AI) and data analytics became central to portfolio management and risk assessment, enabling more informed investment decisions. In South Africa, family offices are known to provide tailored investment management solutions, focusing on protecting and growing clients' wealth over time. Caban

Additionally, the Africa investor (Ai) Family Offices Forum serves as a platform for successful families to connect and share within an exclusive community, potentially facilitating discussions on innovative investment strategies, including AI adoption. African Investor

5. Policy and Regulatory Developments

The African Union's launch of the Continental Free Trade Area (CFTA) Investment Guidelines provided family offices with new frameworks for cross-border investments. Governments in Nigeria and Ghana introduced tax incentives which are spurring further growth. In Nigeria, the government offers various tax incentives to encourage investment in key sectors of the economy. These incentives include tax holidays and customs duty exemptions for pioneer industries, such as renewable energy. U.S. Department of State

Similarly, Ghana provides tax rebates and incentives to attract strategic investments, particularly in sectors like agriculture and manufacturing. These incentives include corporate tax holidays, import duty exemptions, and value-added tax exemptions for specific industries. U.S. Department of State

While these incentives are not exclusively designed for family offices, they create a more favorable investment climate, encouraging the establishment and growth of family offices in both countries.

Key Trends and Lessons from 2024

1. Collaborative Investments

Collaborations between family offices and private equity/venture capital (PE/VC) funds became a hallmark of the African investment landscape in 2024. For example, a Nigerian family office partnered with a regional VC fund to co-invest in fintech startups, combining patient capital with strategic mentorship. This collaboration unlocked synergies that enhanced investment outcomes.

One notable instance is the investment in Moniepoint, a Nigerian fintech company that secured $110 million in Series C funding in October 2024. This funding round was led by existing investors Development Partners International and Lightrock, with new investments from Google's Africa Investment Fund and Verod Capital. The investment valued Moniepoint at over $1 billion, granting it "unicorn" status. The funds are aimed at accelerating growth and developing an integrated platform offering services such as digital payments, banking, foreign exchange, credit, and business management tools. Reuters

This example illustrates how collaboration between family offices and VC funds can provide fintech startups with the necessary capital and strategic support to scale operations and expand their market presence.

Lesson: Collaboration unlocks synergies that enhance investment outcomes.

2. Emphasis on Governance and Education

Strong family governance structures gained prominence. Many family offices implemented family constitutions and leadership training programs to bridge generational gaps.?

Lesson: Governance and education ensure continuity and align family values with investment strategies.

3. Rise of Women in Leadership

In 2024, African family offices saw a significant increase in women's leadership roles. Notably, a Ghanaian matriarch led her family's philanthropic efforts, focusing on gender equality and youth empowerment. This trend underscores the value of diverse leadership in enhancing decision-making and promoting inclusivity.

Ghana has made strides toward gender equality, with women achieving higher rates in health and education compared to their Sub-Saharan Africa peers. However, challenges remain, particularly in translating these advancements into improved earnings and decision-making opportunities, especially for rural women and girls. World Bank Blogs

Efforts to empower young women in Ghana include initiatives like the 'Girls Get Equal' campaign by Plan International, launched in 2019, which encourages young women to assume leadership positions to promote national development. Ministry of Gender and Social Protection

In July 2024, Ghana's parliament passed the Affirmative Action Gender Bill, aiming to increase women's participation in governance and decision-making to at least 30% by 2030. This legislative move is a significant step toward addressing socio-cultural, political, economic, and educational imbalances. Reuters

Lesson: Diversity in leadership enriches decision-making and fosters inclusivity.

4. Regional Diversification

Family offices increasingly diversified their portfolios geographically, investing across West, East, and Southern Africa. This approach reduced exposure to region-specific risks and tapped into opportunities like tech hubs in Kenya and renewable energy in South Africa.?

Kenya has established itself as a leading technology hub in Africa, often referred to as the "Silicon Savannah." The country has attracted significant investments in its tech ecosystem, with startups raising substantial equity funding. In 2023, African startups collectively secured $2 billion in equity funding, reflecting a maturing and resilient ecosystem. Kenya, along with Nigeria, Egypt, and South Africa, accounted for a significant portion of this investment, highlighting the country's prominence in the tech sector. Abfestonia

South Africa's renewable energy sector has seen substantial growth, attracting both local and international investments. In 2024, the momentum for Africa’s energy transition was bolstered by new funding initiatives. South Africa’s Presidential Climate Commission launched the Just Energy Transition (JET) Investment Plan, seeking $98.7 billion between 2023 and 2027 to support the country’s clean energy projects, including electric vehicles, green hydrogen, and expanded electricity capacity. Solar Quarter

By diversifying investments across different regions and sectors, family offices are reducing exposure to region-specific risks and tapping into high-growth opportunities in Africa's evolving economic landscape.

Lesson: Diversification is essential for resilience and growth.

5. Philanthropy as a Strategic Tool

Philanthropy has become a strategic tool for family offices, allowing them to contribute to societal development while preserving family legacies. By establishing scholarship funds, such as those supporting underprivileged students in STEM (Science, Technology, Engineering, and Mathematics) fields, family offices can address educational disparities and promote economic growth. These initiatives not only provide opportunities for individuals but also enhance the family's reputation and commitment to social responsibility.

In Tunisia, there are various scholarship programs aimed at supporting students in STEM fields. For instance, the U.S.-Tunisia Space Camp Scholarship Program offers opportunities for students to engage in STEM-related activities. Amideast

Additionally, the Tunisia Undergraduate Scholarship Program provides full scholarships to outstanding students from underrepresented sectors for undergraduate study. Exchanges State

While these programs are not directly linked to family offices, they exemplify the types of initiatives that can inspire or be complemented by family office philanthropy.

By investing in education through scholarships, family offices can make a lasting impact on individuals and communities, fostering a skilled workforce that contributes to the broader economy. Such philanthropic endeavors demonstrate a commitment to societal well-being, reinforcing the family's legacy and reputation for generations to come.

Lesson: Philanthropy builds long-term impact and strengthens reputational capital.

The Family Office Advantage

Family offices provide tailored solutions that address the unique needs of UHNW families and businesses. Here’s why stakeholders should leverage family offices in 2025:

1. Customized Wealth Management

Family offices offer personalized investment strategies that align with family goals and values. For example, a family office tailored an impact-driven portfolio for a client passionate about renewable energy, ensuring both financial returns and alignment with their environmental values.

2. Access to Exclusive Opportunities

Family offices have privileged access to off-market deals, such as early-stage tech investments and private equity projects. Collaborating with family offices can open doors to lucrative opportunities.

3. Long-Term Focus

Unlike institutional investors, family offices operate with patient capital, prioritizing sustainable returns over short-term gains. This approach aligns with the long timelines required for African development projects.

4. Enhanced Governance

Family offices establish robust governance frameworks that prevent internal conflicts and ensure strategic continuity.

5. Multigenerational Wealth Preservation

By focusing on education, succession planning, and impact investing, family offices secure wealth for future generations while addressing current societal needs.

Looking Ahead to 2025

1. Digital Transformation

The integration of blockchain and AI will further revolutionize family office operations, enhancing transparency and efficiency.

2. Climate Action Investments

Family offices will increasingly prioritize investments in renewable energy, climate-smart agriculture, and sustainable infrastructure.

3. Deeper Cross-Border Collaborations

With improved CFTA frameworks, family offices will foster partnerships across African borders, unlocking regional synergies.

4. Expanding Philanthropy

Philanthropic initiatives will scale, targeting education, healthcare, and youth entrepreneurship across Africa.

Closing Thoughts

The year 2024 underscored Family Offices' role as catalysts for change, balancing tradition with innovation. By championing patient capital, integrating cutting-edge technologies, and aligning investments with societal values, family offices are poised to lead the financial landscape into 2025 and beyond.

As 2025 approaches, UHNWIs, family businesses, and PE/VC fund managers must capitalize on the unique advantages family offices offer. Together, we can shape a prosperous, sustainable, and inclusive future for Africa’s economy—one investment at a time. I would love to stay engaged and work more closely with you in 2025. Please engage further with me if you wish to do so by connecting with me.

PS. I share thoughts on sustainability in family businesses and transgenerational wealth. Learn more about my work with enterprise families and ultrahigh net worth individuals here: www.geneafamilyoffice.com