The World Economic Forum (WEF), a global non-governmental organization creating a platform for views exchange on investment, economic and developmental issues across the world last week gathered African Head of States, business leaders and think tanks in Cape Town, South Africa for the Africa 2019 Edition.

The Forum came at a time where Africa and the world were still struck by the attacks on foreign nationals by South Africans in Johannesburg, popularly known as Xenophobia or Afrophobia. The attacks were concentrated on middle class commercial outposts, targeting foreign traders and hawkers who according to South Africans were taking up their jobs and trading space.

On Nigerians in particular the horrific burning down of trading facilities, business properties and assets was reported to be fueled by Nigerian alleged dealings on illicit drugs and organized criminal activities in turn eroding community ‘s moral fabric sending South African youngsters to sorry state of addiction and disorganized lives .

Conversations at the forum have attributed these attacks on inequality and inability of African governments to create significant and sustainable means of livelihood for its people. “It is corruption, poor administration, unequal distribution of resources and high levels of poverty that fuels this influx of Nigerians and other nationals out of their home countries in the first place,” said Obiageli Katryn Ezekwesili, former World Bank Africa Vice President during a panel discussion on unemployment.

 The renowned Nigerian scholar, researcher and global think tank further added that it was South African government’s failure to create meaning jobs for its citizens as well that builds up its citizen frustration “Crime is a result of inequality and frustration that comes with clear segregation in resources allocations and the means of production,” she said.

The panel which President Dr Mokgweetsi Masisi was part of underscored that remedies to African unemployment crises must focus on the post millennial generation, a crop of youngsters aged between 15 and 25. Current statistics according to the World Economic Forum indicates that South Africa’s unemployment rate is at 29 % with unofficial statistics understood to be at around 40 %. The continent’s largest economy Nigeria is home to around 23 % unemployed citizens, with the figure projected to reach levels of 30 % next year.

This week the World Bank released staggering figures signaling Africa’s largest economy will run short of funds to finance its national budget because of eroded domestic revenue generation base caused by poor and ineffective tax collection mechanism. In Kenya, the largest East African economy unemployment rate is 11 %, one of the continent’s lowest, whereas next door in Ethiopia the figure is well around 20 %.

“In the entirety, on average, in every African population, a quarter is far away from finding a job by any means or whatsoever” underscored the World Economic Forum. In particular Botswana’s high income equality and high unemployment rate was highlighted as a seriously ticking bomb for an economy of just over 2 million people.

Last week during the build of the Cape Town Forum, another global anti-poverty and injustices confederation Oxfam International released African inequality analysis report titled “A Tale of Two Continents”. In the report Oxfam highlights that three African billionaires today have more wealth than the poorest 50% or 650 million people across the continent.

Wealth of the bottom 50% of the African population is 22.98 billion US dollars while wealth for the three richest billionaires in Africa is 28.8 billion US dollars, being Nigerian industrialist Aliko Dangote at USD 14.1 billion, South Africa –British diamond and mining magnet Nicky Oppenheimer at USD 7.7 billion while South Africa’s luxury goods business tycoon and diversified investment magnet Johann Rupert brings USD 7 billion dollars to the trio-elite pie. This is according to Forbes 2019 Billionaires List.

The report also shows how rising and extreme inequality across Africa is undermining efforts to fight poverty. “A Tale of Two Continents” reveals that while the richest Africans fortunes are increasing, extreme poverty is rising in the continent. The report also looks at how unsustainable levels of debt and a rigged international tax system are depriving African governments of billions of dollars in lost revenue each year – money that could otherwise be invested in education, healthcare and social protection.

Oxfam says the continent is rapidly becoming the epicenter of global extreme poverty. While the number of people living on less than $1.90 a day has plummeted in Asia, this number is rising in Africa. The World Bank estimates that 87% of the world’s extreme poor will be in Africa by 2030, if current trends continue.

"Africa is ready to rise – but only once its leaders have the courage to back a more human economy that works for the many and not a few super-rich men. They can achieve this by investing in inequality-busting, universal and quality public services like health and education and by developing truly progressive tax systems. These are particularly powerful for women and girls living in poverty. They can also back a transformation towards decent and dignified work that protects the rights of workers, especially in the age of the African Free Trade Area and the new digital era.” Said Winnie Byanyima, Executive Director of Oxfam International.

The report features a first-ever ranking of African nations on their commitment to tackling inequality. The Commitment to Reducing Inequality Index, developed by Oxfam and Development Finance International, ranks countries on their policies on social spending, tax, and labor rights – three areas the organizations say are critical to reducing inequality.

South Africa and Namibia take first and second place respectively, with their strong social spending and a progressive tax system. Nigeria meanwhile has an unenviable distinction of being at the bottom of the Africa ranking, as well as the global ranking for two years running.
 In other staggering highlights Oxfam‘s “Tale of Two Continents” shows that the most unequal country in Africa, Swaziland, is home to one billionaire, Nathan Kirsh, who is estimated to have $4.9bn.

If he worked in one of the restaurants that his wholesale company supplies on a worker’s minimum wage, it would take him 5.7 million years to earn his current level of wealth. In Africa’s largest economy the combined wealth of the 5 richest Nigerians is more than enough to end poverty in Nigeria. Nigeria’s girl population makes up 60% of the more than 10 million children who do not go to school.

 Furthermore Oxfam notes that 75% of the wealth of African multi-millionaires and billionaires is held offshore, as result the continent is losing $14billion annually in uncollected tax revenue. Dangerous and unsustainable levels of debt are hurting social spending. In 2018, Angola spent 57% of government revenue on debt repayments while public spending was cut by 19% between 2016 and 2018. Similar trends are present in Ghana, Egypt, Cameroon and Mozambique. In addition the report says African women and girls are also most likely to be poor. They also stand to lose the most when public services like healthcare and education are underfunded.

In Kenya, a boy from a rich family has a one-in-three chance of continuing his studies beyond secondary school. However, a girl from a poor family has a 1-in-250 chance of doing so. Women and girls also bear the brunt of failing healthcare systems, clocking in hours of unpaid care work looking after sick relatives. In Malawi, women spend seven times the amount of time on unpaid care work than men.

"African political and business leaders face a clear choice. They can stay on the path of increasingly extreme inequality, where poverty continues to rise while wealth in the hands of a tiny elite and foreign companies’ spirals. Or they can choose another way: towards a more prosperous and equal Africa that invests in and respects the dignity of its entire people,” added Ms Byanyima

At the Africa World Economic Forum, Karan Bhatia Google Vice President, Global Public Policy and Government Affairs noted that African government needs to invest in the right infrastructure and put in place the right policy and legal frameworks, “African states need to build a digital culture where its young people can tap into technological advancements and the digital revolution, the right regulation climate will also be key in achieving any meaningful results” he said.

 Nigerian Tycoon, Founder and Executive Chairman of Zennith Bank, the country’s largest commercial banking outfit by market capitalization highlighted that it was high time governments and domestic private sector come together to mobilize resources for their economic transformation “The government needs to come up with policies, bespoke for earmarked economic sectors and that can only happen if the private sector itself was part of the policies formulation,” he said.