We all know that the main commodities that create the best returns for investors around the world are gold and art.
Despite its rocky start, contemporary African art has flourished in recent years by creating a drastic increase in prices and demand. But what is the reason for this demand, which has been growing and breaking records? The answer is simple!
The main investors in African Art are Africans themselves, mainly from South Africa and Nigeria. Africa has seen a massive increase in the number of millionaires, thanks to telecommunications, retail, imports and exports, and many other similar sectors and industries. In addition, since art is typically regarded as a status symbol for the wealthy, and as the number of billionaires grows, their investment in African Art is not surprising.
According to a new analysis by the Brookings Institution, consumers in Africa spent $1.4 trillion in 2015, and this is expected to rise to $2.1 trillion by 2025.
Given that, the wealthy are rapidly turning to art as a source of investment, it is likely that the contemporary African art market will continue to grow.
Perhaps it is, for this reason, that now is the perfect time to invest in African Art. It will only become increasingly popular as the African continent progresses - more cultural organizations will be established and the expansion of the wealth of the African upper class will increase.