Africa’s Wealth Gap: Rich-Poor Divide Widens
Oxfam report reveals staggering inequality and its impact.
A new report by Oxfam reveals a disturbing trend in Africa: the wealth of a few is exponentially greater than the combined wealth of millions, highlighting a deepening inequality crisis across the continent.
Extreme Wealth Accumulation
Oxfam’s report, “Africa’s Inequality Crisis and the Rise of the Super-Rich,” highlights that the combined fortunes of the four wealthiest individuals in Africa, totaling $57.4 billion, surpasses the total wealth held by 750 million people.
The concentration of wealth is further illustrated by the fact that the richest 5% of Africans possess nearly $4 trillion, dwarfing the combined holdings of the remaining 95% of the population. In 2000, the continent had no billionaires; now there are 23. Their wealth has increased by over 50% in just five years, exceeding $112 billion.
Even if the top five billionaires relinquished almost all of their wealth, retaining only 0.01%, they would still be 56 times wealthier than the average African. That kind of extreme wealth isn’t just unfair, it’s having real consequences for everyone else.
The Cost of Inequality
Africa is among the most unequal regions globally, with poverty increasing. Nearly half of the world’s 50 most unequal countries are located on the continent. Seven in ten people living in extreme poverty are in Africa.
Many African governments are not doing enough to bridge the gap. Public investment in healthcare, education, and social safety nets are being reduced. While general sales taxes such as VAT increase costs for ordinary citizens, the wealthiest pay some of the lowest tax rates in the world.
A recent study by the World Bank found that social safety net programs can significantly reduce poverty and inequality in Africa, but many countries lack the resources or political will to implement them effectively (World Bank, 2023).
Africa collects only 0.3% of GDP in wealth taxes, compared to Asia (0.6%), Latin America (0.9%), and OECD nations (1.8%). This share has decreased by nearly 25% over the past decade. For every dollar African governments collect from income or wealth taxes, they collect nearly three dollars from indirect taxes such as VAT.
Income inequality has worsened or stagnated in nearly 20 African countries over the past 10 years. Yet change remains possible.
A Path to a Fairer Future
Oxfam estimates that a modest 1% wealth tax and a 10% income tax on the richest 1% could generate $66 billion annually. This revenue could fund free, quality education and ensure universal access to electricity.
Some countries are showing positive results. Property taxes in **Morocco** and **South Africa** generate over 1% of GDP, among the highest in Africa. Since 2000, the poorest half of **Seychelles**’ population has seen their income share rise by 76%, while the richest 1% have seen their share fall by two-thirds.
The government of **Seychelles** provides free quality education, universal healthcare, and a robust safety net for its most vulnerable citizens.
Inequality also has a gender dimension. Men in Africa possess three times more wealth than women, creating the widest gender wealth gap globally.
