This archive report was first published on 28 November 2019.
As wealth in Africa rises, the demand for citizenships in the region is increasing, with foreigners seeking citizenships in Africa and rich Africans looking to have a second home in Europe.
According to Armand Arton, the founder and CEO of Arton Capital, a company that specialises in investor programmes for residence and citizenship, more Kenyans are seeking EU or Caribbean passports.
Armand explained that top markets in Africa for citizenship by investment programmes are South Africa, Nigeria, Kenya, Ivory Coast, Morocco, and Egypt, with South Africans preferring Portugal, the US, and Malta, and Nigerians preferring Cyprus, which is the most expensive, and has the best investment programme.
He added that for African business people, he would recommend the EU countries such as Malta, Portugal, and Montenegro, citing their favourable tax regimes and ease of access to the rest of Europe.
Andrew Amoils, the head of research at New World Wealth, a market research group based in South Africa, noted that a number of governments are also targeting globally mobile wealth, introducing overseas buyer taxation on residential purchases and enticing wealthy individuals to relocate with favourable tax regimes.
Marios Rafail, the head of Henley & Partners Geneva office, said investment migration has grown and has become a $26 billion industry, with governments competing with each other to attract foreign direct investment through the citizenship and residence by investment programmes.
He added that in the last three years, Kenya, Nigeria, and South Africa have emerged as key dominant countries for an alternative citizenship through investment, with North Africa dominating the market due to its proximity to the Middle East.
Armand Arton noted that the citizenship by investment business is growing due to the increase in political instability, especially in the Middle East and other developing countries, with Africa accounting for almost 10 percent of their services.
He added that the largest demand for citizenship by investment programmes comes from China, with 60 percent of the company's clients, followed by the Middle East with 20 percent, and Russia and the Commonwealth of Independent States (CIS) with 10 percent.
Femi Young, founder and CEO of Total Outsourcing Solutions, who is helping rich Nigerians get a second citizenship in Malta, said having an additional passport gives one access at any time, which is crucial especially if an individual comes from a country that has political and economic instability.
He added that Malta has the leading citizenship programme, with a Maltese passport providing citizenship in a highly liveable area of the world with easy access to the rest of Europe, and that the cost of citizenship in Malta starts from $1 million.
