Combined wealth of seven richest Africans exceeds half of continent’s population

An Oxfam report discloses that the combined wealth of Africa’s seven wealthiest individuals surpasses that of the 700 million people constituting the poorest half of the continent’s population.

The report on inequality and global power highlighted that seven of the world’s largest corporations, several of which have a notable presence in Africa, are led by CEOs or principal shareholders who are billionaires.

According to Oxfam, these corporations hold a collective value of $10.2 trillion, nearly four times the total Gross Domestic Product (GDP) of all African countries combined.

The report highlighted a persistent surge in extreme wealth over the past three years, contrasting with the ongoing global poverty at pre-pandemic levels.

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It further detailed how the world’s five wealthiest men have more than doubled their fortunes to $869 billion since 2020, while the world’s poorest, constituting about 60 percent and comprising nearly five billion people, have experienced financial losses.

The report suggests implementing a progressive wealth tax on African millionaires and billionaires, proposing a two percent levy on net wealth exceeding $5 million, an additional two percent on net wealth surpassing $50 million, and a five percent tax on wealth above $1 billion. According to the report, this strategy could yield approximately $11.9 billion annually, nearly matching the United Nations’ 2023 humanitarian funding needs for eastern and southern Africa, which amount to $12.5 billion.

It said: “Aliko Dangote, Africa’s richest person, holds a ‘near-monopoly’ on cement in Nigeria. He owns Dangote Cement, which has enjoyed some of the world’s highest profit margins on cement at 45 per cent, while paying a tax rate of one per cent over 15 years.

“In Nigeria, Aliko Dangote owns more wealth than the bottom half of Nigerians (109 million people). Dangote and Abdulsamad Rabiu, the country’s second richest man, have increased their fortunes by 29 per cent since 2020, while the bottom 99 percent have become poorer.

“In December 2023, the Nigerian Investment Promotion Commission said it approved tax holidays for 34 companies seeking tax incentives and waivers under the Industrial Development Income Tax Act of 2023, among the beneficiaries are Dangote Sino Trucks West, Africa Limited, Lafarge Africa Plc, Honeywell Flour Mills Nigeria Plc, Jigawa Rice Limited and Stallion Motors Limited.”

“Our rigged economies are benefiting the super-rich while governments are struggling to provide crucial public services like healthcare and education to Africans across the continent. Governments must step up and ensure corporations stop squeez­ing workers, dodging tax, and plun­dering our planet in their quest for massive profits. If left unchecked, these corporations will continue to widen the inequality gap,” Oxfam’s Africa Director Fati N’zi-Hassane said.

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“These same companies, the re­port pointed out, benefit from tax breaks under the pioneer status regime, geared to incentivize and stimulate company growth.

“This arrangement allows them to enjoy three to five years without paying corporate income taxes over the years. This policy has resulted in a cumulative total of approximately five trillion nai­ra, constituting 18 .519% of Nige­ria’s 2024

Federal Government budget as passed into law”, the report says.