How rich are you? Here's the reality

Dar es Salaam. The individual net wealth of a Tanzanian is closest to the lowest in Southern African countries surveyed early this year. The survey ranked Tanzanians the seventh poorest people, on average, in the survey that featured eight countries.

The surveyed countries are South Africa, Botswana, Mozambique, Angola, Namibia, Zimbabwe, Zambia, and Tanzania.

Though in terms of Gross Domestic Product (GDP)—which is the total goods and services produced within a year, Tanzania seemed to have the largest economy, the average wealth of an individual in the country is still the lowest, standing at $450 (Sh720,000).

According to a report on Wealth Statistics in Africa, compiled by consultancy, New World Wealth, Tanzania’s total wealth in terms of GDP stands at $20.8 billion (about Sh33.28 trillion), behind South Africa, Angola and Namibia.

These statistics, however, differ with those produced late last year by the Bank of Tanzania (BoT), which put the total market value of all officially recognised final goods and services produced within the country in a year (Gross Domestic Product--GDP) at Sh44.7 trillion (about $27.937 billion).

Using its database of a sample of over 200 high-net-worth individuals (HNWI) in each covered country, New World Wealth says South Africa, which is undoubtedly Sadc’s and the continent’s economic powerhouse rakes in $571.2 billion of wealth while Angola and Namibia stand at $76.2 billion and $23.1 billion respectively.

When the net individual wealth is measured within the Sadc region, Tanzania, despite having the largest economy, still trails countries like Botswana, Zimbabwe, Namibia, and Zambia.

Assuming that national wealth is fairly distributed in Botswana, Zambia, and Mozambique, it means every individual in these countries is, on average, much better off materially than their Tanzanian counterparts, thanks to their lower populations.

South Africa remains the continent’s superpower economically, with a net individual wealth of $11,310 followed by Namibia with $10,500, Botswana $6,580 and Angola $3,890.

“The report ranks major African countries….countries are ranked by total individual wealth,” a statement in the report reads.

According to New World Wealth, an average Tanzanian was worth a miserable $450 in 2013. With a population of just 2 million people, an average Tswana is worth $6,580 while with Zambia’s 13.3 million population, each Zambian is worth an average of $970.

President Robert Mugabe’s country has a population of 12.6 million – making each Zimbabwean worth an average of $570.

Releasing the preliminary results of an August 2012 census, President Jakaya Kikwete did not mince words about the economic dangers posed by a growing population.

“It may not be seen as a problem, especially for a vast country like ours, but it is a big burden economically and socially,” President Kikwete said.

“With 50 million people, it will be very difficult for the government to cater for the needs of its people because there will be resource scarcity.”

In the last census carried out in 2002, Tanzania had a population of 34.4 million. But the country’s growth declined to 2.6 per cent between 2002 and 2012, compared to 2.9 per cent between 1988 and 2002.

And according to New World Wealth, South Africa dominates the Sadc region with the average South African worth $11 310, up from $4 200 in 2000.