The issue of wealth inequality has been a pressing concern globally, with the richest 1% of the population controlling more wealth than the remaining 99% combined. A recent report by DataPanda sheds light on the state of wealth inequality in Africa, revealing that Algeria boasts the lowest inequality index in the region at 27.6%, ranking 152nd globally.
Following closely behind Algeria are Egypt, with an index of 31.5%, placing it 133rd worldwide, and Seychelles, ranking third in the region at 32.1%, holding the 129th spot globally. The report highlights the top 10 African countries with the lowest wealth inequality, with Mauritania, Tunisia, Mali, Guinea, Niger, Ethiopia, and Nigeria rounding out the list.
The findings are particularly noteworthy in the context of Africa's rich natural resources, which often fail to benefit the average citizen. Instead, these resources tend to enrich a small elite, exacerbating existing disparities. According to the World Bank, Sub-Saharan Africa remains one of the most unequal regions globally, with South Africa having one of the highest Gini coefficients in the world.
The legacy of apartheid, unequal land distribution, and systemic economic exclusion continue to leave the majority of South Africa's population without access to significant wealth. In contrast, the wealthiest markets in Africa, including South Africa, Egypt, Nigeria, Kenya, and Morocco, account for 56% of the continent's millionaires and over 90% of its billionaires.
Henley & Partners' 2024 Africa Wealth Report reveals that Africa is home to 135,200 high-net-worth individuals (HNWIs) with investable wealth exceeding USD 1 million, as well as 342 centi-millionaires, each worth USD 100 million or more, and 21 billionaires. The report's findings underscore the need for policymakers to address the growing wealth disparities in Africa, ensuring that the benefits of economic growth are shared more equitably among the population.
The implications of wealth inequality extend beyond the African continent, with rising global disparities fueled by factors such as tax policies favoring the rich, automation reducing middle-class jobs, and access to education and healthcare becoming increasingly tied to wealth. As the world grapples with the consequences of wealth concentration, the example set by Algeria and other African countries with low wealth inequality serves as a reminder of the importance of promoting economic inclusivity and reducing disparities.
In conclusion, the report by DataPanda provides a timely reminder of the need to address wealth inequality in Africa and globally. As the continent continues to evolve, it is essential that policymakers and stakeholders work towards creating a more equitable distribution of wealth, ensuring that the benefits of economic growth are shared by all.