Oxfam: Africa Three Richest Billionaires Own 40% Wealth of the Continent

Ugo Aliogo

Oxfam International report has revealed that the richest people in Africa own 40 percent of the wealth of the continent, adding that three richest billionaires have more wealth than the bottom 50 percent of the population of Africa, approximately 650 million people.

The report explained that the continent is rapidly becoming the epicentre of global extreme poverty, adding that while massive reductions in the number of persons living on less than $1.90 a day have been achieved in Asia, this number is rising in Africa.

“The World Bank estimates that 87 percent of the world’s extreme poor will be in Africa by 2030, if current trends continue. African women and girls are most likely to be poor. Levels of gender inequality are among the highest in the world, combining with economic inequality to create a suffocating web of exclusion. Women and girls are also responsible for the bulk of unpaid care and domestic work that contributes to their family, community and the economy,” the report stated.

The report titled: ‘A tale of two continent’, explained that the economic prospects for Africa are poor, adding that the International Monetary Fund ( IMF) predicted that 24 of the 45 sub-Saharan African countries, including South Africa and Nigeria, are not likely to see a strong economic recovery.

The report, which examined the efforts of African countries through policies to reduce the gap between the rich and the poor, looking at taxation, social spending and labour rights, hinted that Nigeria has the unenviable distinction of being at the bottom of the Africa ranking and Oxfam’s global ranking for two years running.

 

Oxfam in the report explained that social spending is stagnating at a very low level, and the consequences of underinvestment in health and education sectors are painfully evident.

It further stated that one in 10 children dies before he/she reaches his or her fifth birthday, and more than 10 million children do not go to school, stating that 60 percent of these are girls and there is significant potential for Nigeria to collect more tax and increase revenue that could be invested in redistributive policies.

According to the report, “Nigeria is the Africa’s biggest economy, yet the fruits of its economic growth are not shared equally. Poverty and destitution are stubbornly high-around 10 million children are out of school, a quarter of citizens lack access to safe drinking water, and half are living below the $1.90 poverty line. It is estimated that $24billion would be needed to end poverty in the country, which is less than the combined wealth of the richest five Nigerians. Their $29.9billion is more than the country’s entire 2017 budget.

“Nigeria also ranks middle of the table on work and wages, but the past year has seen an increase in the number of labour rights violations. The minimum wage has not increased since 2011, but there is some hope of improvement here. In November 2018, the government agreed to enter into negotiations with labour unions on increasing the monthly minimum wage from ₦18,000 ($50) to ₦30,000, amid threats of a nationwide strike.”

The report further stated that decent work for Africans is key to reducing inequality, adding that informality, underemployment and the precarious nature of jobs affect almost all Africans of working age, and this affect women more than