Yemi Sadik, Managing Director of Coronation Trustees Limited, stated that governance structures—not the size of accumulated wealth—determine whether family fortunes survive across generations in Africa. He made the remarks during a panel session titled "Legal Structures Essential for Global Wealth Transfer" at the Lagos Private Wealth Conference 2026. According to Sadik, governance failure poses a greater threat to family wealth than market volatility, economic cycles or business disruptions.
Sadik noted that many African families already operate informal governance systems through founders, trusted advisers, family businesses and long-standing professional relationships. However, these arrangements often rely heavily on individuals rather than institutional frameworks. "Most African families already have some semblance of governance. The difference is that it is informal. Institutionalising that relationship is where the proper structure comes in," he said.
He explained that informal systems tend to work while founders are actively involved, as decision-making authority and family values remain centred on them. Problems typically arise during succession, when future generations lack clear governance guidelines to manage inherited assets. Sadik emphasized that trusts, private trust companies and fiduciary arrangements should be seen not as standalone solutions but as tools to formalise family influence, improve accountability and ensure long-term continuity.
Yemi Sadik highlights that African families rely on informal governance centred on individuals, yet expect wealth to outlive those individuals. When succession arrives without formal structures, the same families risk dismantling the very legacies they aim to preserve. This gap endangers heirs who inherit assets but not systems. Without institutionalised frameworks, generational wealth may dissolve regardless of its initial size.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
