Four Wealthy Africans Surpass Half of the Continent’s Riches: Oxfam

LAGOS: According to a report released by the anti-poverty organization Oxfam on Thursday, the four wealthiest individuals in Africa possess greater wealth than nearly half of the continent’s 750 million residents. The report cautions that increasing inequality poses a threat to democracy.

Oxfam specifically mentioned Aliko Dangote, the richest person in Africa from Nigeria, in its findings.

According to Forbes, the other three billionaires rounding out the top four include Johann Rupert and Nicky Oppenheimer from South Africa, along with Nassef Sawiris from Egypt.

Oxfam noted that over the past five years, the wealth of African billionaires has surged by 56%, with the wealthiest among them experiencing even greater increases.

Nearly half of the top 50 countries with the most pronounced inequality are located in Africa, as stated in the report.

The organization argued that government policies favor the wealthy and inhibit the poor, allowing the continent’s richest to accumulate even more wealth.

“Most African nations have not effectively implemented progressive taxation to tax the ultra-rich and combat inequality,” the report stated.

Oxfam also attributed rising inequality to “regressive” policies from the International Monetary Fund and secretive financial maneuvers, particularly the use of tax havens to conceal wealth overseas.

The nonprofit organization claimed that inequality is impeding democracy, obstructing efforts to alleviate poverty, and exacerbating the climate crisis, as “political capture” by affluent individuals undermines “pro-poor” government initiatives and public institutions.

For example, in Nigeria, which is Africa’s most populous democracy, aspiring politicians frequently find themselves priced out of elections due to exorbitant fees required by political parties.

Additionally, vote-buying is widespread in a nation where millions struggle with poverty.

Despite these challenges, Oxfam reported that nearly 90% of African countries have regressed on policies regarding taxation, workers’ rights, and minimum wage since 2022, policies deemed essential to address inequality.

Oxfam has called for a complete reform of tax administrations across the continent.

Currently, Africa’s tax systems are approximately three times less effective at redistributing income from the top 1% compared to the global average, according to the report.

Moreover, the continent loses an estimated $88.6 billion each year due to illicit financial flows.

A review of the tax systems of 151 countries revealed that “Africa remains the only region where effective tax rates have not increased since 1980,” as reported by the charity.