Africa's wealthy urged to prioritise succession planning to expand private fortunes
Industry experts noted that while Africa has witnessed rapid growth in entrepreneurship and private enterprise over the past two decades, many family-owned businesses remain vulnerable due to inadequate succession planning and weak governance structures.
Panelists engage in discussion during a recent meeting in Nairobi. (Courtesy Photo)
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Africa's growing population of high-net-worth individuals is being urged to move beyond wealth creation and focus on structured succession planning, governance and long-term wealth preservation amid an unprecedented expansion in private fortunes across the continent.
The call was made by officials from Tarra Agility Africa last week during the Nairobi Private Wealth Conference held at the JW Marriott Hotel in Nairobi under the theme "Lasting Legacy in an Evolving World," which brought together over 250 delegates, affluent individuals, entrepreneurs, family business among others.
Speaking during a media briefing held on the sidelines of the conference, industry experts noted that while Africa has witnessed rapid growth in entrepreneurship and private enterprise over the past two decades, many family-owned businesses remain vulnerable due to inadequate succession planning and weak governance structures.
"As wealth grows, so does the responsibility to ensure it is preserved for future generations," participants observed, noting that many successful businesses fail to survive beyond the founding generation because of poor estate planning and family disputes,” Njeri noted.
She highlighted that today's wealthy families increasingly require integrated solutions covering estate planning, trust structures, family governance, philanthropy, tax efficiency and international investment strategies.
“A Kenyan family, for example, may simultaneously face Kenyan succession requirements, UK inheritance tax considerations and UAE estate administration rules. Without deliberate structuring such as a will recognized across relevant jurisdictions, a trust holding cross-border assets or a holding company that consolidates ownership and simplifies succession, families risk delays, disputes and unintended tax consequences.”
Marjorie Kivuva, Partner, Private Wealth & Head of Legal, Tarra Agility Africa says with Africa expected to witness one of its largest intergenerational wealth transfers in the coming decades, delaying succession planning could expose family businesses to costly legal disputes, fragmented ownership and loss of enterprise value.
The discussions also highlighted the changing profile of African wealth. A growing number of entrepreneurs are building diversified investment portfolios spanning real estate, agriculture, manufacturing, technology, financial markets and private equity across multiple jurisdictions.
The conference further examined the impact of digital transformation on wealth management, including the growing interest in alternative investments and technology-driven financial services. Speakers argued that governance frameworks must evolve alongside changing investment trends to safeguard family assets over the long term.
Another key focus was preparing the next generation of business leaders. Experts encouraged families to involve younger members in governance and financial decision-making early enough to ensure smooth leadership transitions and continuity of family enterprises.
For financial institutions, the growth in Africa's private wealth presents significant opportunities to expand advisory services tailored to entrepreneurs, family businesses and high-net-worth individuals seeking comprehensive wealth management solutions.
The Nairobi Private Wealth Conference brought together regional and international experts from the banking, legal, investment and tax sectors, reflecting the growing importance of private wealth management in Africa's evolving financial landscape.