The anti-poverty charity Oxfam released a report on Thursday, revealing that the four wealthiest individuals in Africa possess more wealth than approximately half of the continent’s 750 million people. The report cautioned that this escalating inequality is hindering democratic progress.
While Oxfam’s report specifically named Nigerian billionaire Aliko Dangote as the continent’s richest man, Forbes data indicates that the top four also include South Africans Johann Rupert and Nicky Oppenheimer, along with Egyptian businessman Nassef Sawiris.
Over the past five years, African billionaires have seen their collective wealth surge by an astonishing 56%, with the wealthiest individuals experiencing even greater gains, according to Oxfam. The report also highlights that nearly half of the world’s 50 most unequal countries are located on the African continent.
Oxfam argues that current government policies are disproportionately skewed against the poor, allowing the continent’s super-rich to accumulate even more wealth. “Most African countries are not fully leveraging progressive taxation to effectively tax the super-rich and address inequality,” the report stated.
However, the charity also attributed mounting inequality to “regressive” International Monetary Fund (IMF) policies and illicit financial flows, particularly the widespread use of tax havens to conceal wealth abroad.
The NGO emphasized that inequality is obstructing democracy, impeding poverty reduction efforts, and exacerbating the climate crisis. It pointed to “political capture” by the wealthy as a factor undermining “pro-poor government policies and the effectiveness of public institutions.” For instance, in Nigeria, Africa’s largest democracy, individuals aspiring to political office are often priced out due to exorbitant fees demanded by political parties, while vote-buying is rampant in a country where tens of millions live in desperate poverty.
Despite these critical issues, Oxfam noted that since 2022, nearly nine out of ten African countries have unfortunately rolled back policies on taxation, labor rights, and minimum wages—measures that the charity deems essential for tackling inequality.
To address these disparities, Oxfam recommended a comprehensive overhaul of tax administrations across the continent. Currently, Africa’s tax systems are almost three times less effective at redistributing income from the richest one percent compared to the global average. Additionally, the continent loses an estimated $88.6 billion annually due to illicit financial flows.
A review of the tax systems in 151 countries revealed that “Africa was the only region in which countries have not increased effective tax rates since 1980,” according to the charity.
