
Africa's billionaire boom masks a crisis for the many
Moreover, the top 5 percent of Africans now control nearly $4 trillion in wealth, more than double the combined assets of the remaining 95 percent.
Titled Africa's Inequality Crisis and the Rise of the Super‑Rich, the report profiles the four wealthiest individuals on the continent. At number one is Aliko Dangote of Nigeria, estimated to be worth $23.3bn. Next is Johann Rupert and his family from South Africa, with about $14.2bn in wealth. Following them are Nicky Oppenheimer and his family, also South African, with a fortune of $10.2bn. Finally, Egyptian Nassef Sawiris holds approximately $9.4bn in net worth.
I find myself among the bottom 95 percent, the hopeful yet under‑resourced individuals who have laboured for modest incomes while yearning for socioeconomic transformation. At the dawn of the 21st century, in 2000, Africa had no billionaires. Today it is home to 23 billionaires, predominantly male, whose combined wealth has soared by 56 percent over the past five years, reaching an astounding $112.6bn.
Today, no two nations better illustrate Africa's stark wealth disparity and oligarchic dominance than Nigeria and South Africa, and no business leader exemplifies the rise of crony capitalism on the continent more than Aliko Dangote.
Here is why.
Twenty‑five years ago, Dangote was simply an ambitious multimillionaire businessman. Then, on February 23, 1999, he made a substantial donation to General Olusegun Obasanjo's presidential campaign. That seemingly benign investment proved decisive for his business trajectory.
A year later, the Obasanjo administration embarked on a sweeping privatisation of state‑owned enterprises, aiming to liberalise the economy, attract private investment and foster domestic entrepreneurship under the Backward Integration Policy (BIP). Dangote acquired Benue Cement in 2000 and Obajana Cement in 2002, laying the foundations for Dangote Cement, now Africa's largest cement producer.
Between 2010 and 2015, Dangote Cement reportedly paid an effective tax rate of less than 1 percent on profits of approximately 1 trillion Nigerian naira (about $6bn at 2015 exchange rates). Dangote himself became Nigeria's richest entrepreneur in 2007, attaining billionaire status amid the company's rapid expansion.
Since then, the quid pro quo strategies between Dangote and the Obasanjo administration have become a conventional aspect of Nigerian politics and business, albeit a controversial one.
Critics argue that the BIP has stifled competition and fostered monopolistic practices in key sectors like sugar and cement, disproportionately benefitting politically connected elites – including Dangote – at the expense of smaller enterprises and ordinary Nigerians.
Nigeria is richly endowed with natural resources and possesses world-class human capital. Nevertheless, more than 112 million people, nearly half of Nigeria's population, live in poverty, based on the most recent population estimates of around 227 million. At the same time, the country's five wealthiest individuals, dominating sectors such as oil and gas, banking, telecommunications, and real estate, have amassed a combined fortune of $29.9bn.
The dysfunctional system that has enabled Nigeria's 'big five' entrepreneurs and fostered oligarchic patterns is not unique to Nigeria. South Africa, Africa's most industrialised nation, confronts similar but distinct challenges in its post-apartheid era.
After apartheid ended on April 27, 1994, the African National Congress (ANC) introduced Black Economic Empowerment (BEE) and Broad-Based BEE initiatives (BBBEE). These policies aimed to advance the effective participation of Black people in the economy, achieve higher growth, increase employment and ensure fairer income distribution.
However, over time, the ANC itself acknowledged that these affirmative action programs have not appreciably benefitted most Black South Africans, especially Black women. In the 31 years since apartheid, economic conditions have only marginally improved. While a few Black business leaders have emerged, they continue to succeed within a system engineered to favour a narrow elite.
One such example is Patrice Motsepe, a mining magnate and among Africa's richest individuals, with an estimated net worth of approximately $3bn. Supporters view him as a tangible beneficiary of post-apartheid economic transformation, but critics, including economist Moeletsi Mbeki, argue that his wealth reflects crony capitalism rather than broad-based entrepreneurship. Motsepe, who is also the brother-in-law of President Cyril Ramaphosa, remains a rare exception in a system marked by elite capture.
By April 2025, South Africa's official unemployment rate stood at 32.9 percent, equating to about 8.2 million people actively seeking work, while the broader rate, including discouraged jobseekers, rose to 43.1 percent. Around the same time, approximately 34.3 million South Africans, or more than half the population, were living in poverty.
Meanwhile, the Oppenheimer family, whose immense fortune in diamond mining has deep historical roots tied to South Africa's colonial past, continues to expand its wealth. A Harvard Growth Lab study published in November 2023 concluded that three decades after the end of apartheid, the economy is defined by stagnation and exclusion, and current strategies are not achieving inclusion and empowerment in practice.
Unsurprisingly, the most prominent beneficiaries of BEE initiatives have been ANC insiders and aligned business elites, including President Ramaphosa, former Gauteng Premier Tokyo Sexwale, Saki Macozoma, a former ANC MP, and Bridgette Radebe, sister to Motsepe and wife of ANC stalwart Jeff Radebe.
This distinct class of elites starkly contrasts with BEE's intended beneficiaries, everyday South Africans. Instead, these individuals are grappling with the lingering consequences of oligarchic state capture, widespread corruption, poor service delivery, and sustained cuts to education and health budgets.
Nigeria shares this pattern. At the very least, Dangote's vast wealth should represent the pinnacle of success in a thriving African economy. Instead, he exemplifies Africa's most prominent and wealthiest oligarch, demonstrating how proximity to political power can create controversial paths to fortune. Regrettably, almost every African country has its own Dangote or Motsepe whose influence hinders fair and inclusive economic development.
Crony capitalism is a sharp break from free market ideals, where political connections override merit and innovation. This distortion breeds corruption, economic inefficiency and social inequality. It also weakens democratic norms by allowing private interests to gain excessive influence over public policy.
A 2015 study by Columbia University concluded that wealth accumulated by politically connected oligarchs has a strongly negative impact on economic growth, while the fortunes of unconnected billionaires have little effect. This finding suggests African economies could grow more rapidly if the enormous influence of politically connected elites was curtailed.
Now is the time for meaningful reform.
African nations must implement a wealth tax on high-net-worth individuals and direct the revenue towards essential services in impoverished areas.
According to Oxfam, a modest tax increase consisting of a 1 percent levy on wealth and a 10 percent income tax on the richest individuals could generate $66bn annually, equivalent to 2.29 percent of Africa's gross domestic product, and help close critical funding gaps in education and electricity access.
Above all, African countries must adopt economic policies focused on equity to reduce poverty and improve wellbeing.
We, the neglected and disenfranchised 95 percent, stand against oligarchy.
The views expressed in this article are the author's own and do not necessarily reflect Al Jazeera's editorial stance.
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On the day of the execution, she had no inkling that her world had changed. It wasn't until late that night that her mother, Maria, managed to reach her on her landline. Her first reaction was shock. Noo, who is now a travel writer and author based in London, told Al Jazeera in a phone call that it was hard to imagine the man who would amble into her room while she idled on her bed and thrust a book in her face with a 'Read this!' could be killed in such a way. After all, powerful international voices had spoken up to pressure the Nigerian government to release him: Nelson Mandela was among them. Noo's brother, Ken, was in New Zealand to attend the opening of the annual Commonwealth of Nations meeting and press for Nigeria's suspension. The association of former British colonial states was an important aid avenue for Nigeria at the time. The world, too, reacted with shock. Nigeria was suspended from the Commonwealth, and the United States and several other countries severed diplomatic ties. Noo remembers wondering why United Kingdom news channels were repeatedly running the story. That's when it dawned on Noo how great her father's task had been. Her family was determined to get justice, but it was a long road, Noo explained. In 1996, her brother and uncle sued Shell, which the Ogoni Nine families accused of complicity by aiding the military. Shell denied the allegations. The case, filed in the US under a law that allows for jurisdiction in foreign matters, dragged on until 2009 when the company settled for $15.5m. Shell said it was 'humanitarian and legal fees'. It mostly went towards paying lawyers and establishing a trust fund that still provides scholarships to Ogoni students, Noo said. It's annoying, though, she added, that critics claim her family and the others got rich on the settlement. 'It was a tiny amount,' she said. 'And even if it weren't, who wants their parent killed for a $15m settlement?' For many years, Noo said, she couldn't bear to visit Nigeria or hear the name 'Shell' without feeling overwhelmed. The company was also taken to The Hague in 2017 by a group of Ogoni Nine widows with the support of Amnesty International; however, a judge ruled there was no evidence that Shell was complicit in the government executions. Meanwhile, Amnesty said in a 2017 report that it had found evidence that Shell executives had met with military officials and 'encouraged' them to suppress protests. The company, the report said, transported soldiers and in 'at least one instance paid a military commander notorious for human rights violations'. Shell denied the claims and said it pleaded with the government for clemency for the Ogoni Nine. Noo has since found the strength to visit Ogoniland. She first went back in 2005, 10 years after her father's execution. The region has become even more volatile as ethnic militias now patrol the creeks, attacking soldiers, controlling oil pipelines and kidnapping oil workers at sea. Noo said her next book will focus on the devastation in her homeland. Her brother and mother died in the past decade, leaving her and Zina, her US-based twin sister. The losses set her back, she said, but she now frequently travels back home to document the oil spills, which are still going on, although Shell never resumed operations after the 1993 protests. Life as a writer abroad contrasts jarringly with her life back home, Noo said. One week, she is walking down the streets of Paris, and the next, she is standing in oil-soaked farms in Ogoniland. But her work in Nigeria, she added, reminds her of her father's struggle. 'My father was a real kind of David vs Goliath,' Noo said. 'Most people back then had never even heard of Ogoni. As I get older, I'm just always more in awe of what he achieved. It was quite incredible.' Too little, too late? Shell's leaky pipes continue to pump oil into the earth all these years later, environmental groups say. The company, which plans to sell its onshore assets and exit the Niger Delta after so many years of controversy, has always claimed its pipes are being sabotaged. Calculated or accidental, the oily devastation is visible in the eerie stillness of Ogoniland's mangroves, which should be alive with the sounds of chirping insects and croaking frogs. In the murky rivers floating with oil, old, stooped fishermen cast nets that bring up air. Nubari Saatah, an Ogoni, has long advocated for Ogonis to control their oil wealth, just as activists before him did. The president of the Niger Delta Congress political movement said Ogonis have remained resentful since the rebellion, primarily because Nigeria has not repaired the ruptured relationship or rectified injustices by giving Ogonis control over their land. Saatah, author of the 2022 book What We Must Do: Towards a Niger Delta Revolution, regularly appears on radio and TV shows to comment on the Niger Delta crisis and often places the blame for the region's instability at the government's doorstep. 'The violent militancy that engulfed the Niger Delta was a direct reaction to the violence visited on the peaceful methods employed by Ogoni,' Saatah said. 'Unfortunately for the Ogoni, the executions brought about a leadership vacuum that has still not been filled till today,' he added. A UN Environmental Programme report in 2011 found that more than 50 years of oil extraction in Ogoniland had caused the water in much of the region to be contaminated with extremely high levels of toxic hydrocarbons like benzene. In one village, benzene in the groundwater was up to 900 times the accepted World Health Organization standard. Cleaning up the devastation and restoring the land would require the 'world's most wide-ranging and long-term oil clean-up exercise ever undertaken', the report said. Although Nigeria and Shell committed in 2012 to a clean-up through the Hydrocarbon Pollution Remediation Project (HYPREP), more than a decade later, progress has been slow and hard to measure, critics said. Saatah blamed the government for the lack of results. Abuja, he said, has not funded the programme as promised. To Ogonis, that feels like a message that the government does not care, he added. Shell, meanwhile, has contributed $270m to the project. Al Jazeera reached out to HYPREP for comment but did not receive a response. Still, there is some change, Saatah noted. When the clean-up started, government authorities installed a sign at the community well in Saatah's village of Bomu that read: 'Warning! Do not drink this water.' People hardly glanced at the post as they fetched their drinking water, largely because there were no alternative water sources. In the past five or so years, however, HYPREP has installed potable water tanks in Bomu. Saatah worries, though, about whether the government will maintain the costs in the long run and whether the burden will be put on his community. Some in Ogoniland see Abuja's renewed interest through the recent pardoning of the Ogoni Nine as suspicious, coming as it does at a time when Nigeria is in the throes of one of its worst financial declines and when the government is desperate to extract and sell more crude oil. Resuming active exploration in Ogoniland, which stopped in 1993, could yield up to 500,000 barrels of crude per day, a MOSOP official, which is still operating, told reporters last year. That would be on top of the current 1.7 million barrels per day produced from other parts of the delta. 'The lines are there to be connected between oil resumption and the pardon of the Ogoni Nine,' Saatah said. The pardons, he said, were to sweeten the Ogoni people and avoid any opposition. As things stand, though, Ogoni communities are unlikely to agree to renewed exploration, he added, first, because locals still cannot control oil profits and, second, because rather than make Ogonis happy, Tinubu's pardoning of the Ogoni Nine has only worsened tensions internally, Saatah said. Rifts that emerged during the 1994 crisis have not healed. The fact that the president's speech did not acknowledge the four murdered MOSOP members in the mob action that led to Saro-Wiwa's arrest has angered their families and supporters, some of whom fault the aggressive stance of Saro-Wiwa for what happened. Noo and the Ogoni Nine families are not completely satisfied with the government's move either. The national honour was a welcome surprise, Noo said, but the pardons were not enough. 'A pardon suggests that something, that a crime had been committed in the first place,' she said. 'But nothing's been committed.' What she wants, she added, is for the conviction of Ken Saro-Wiwa and the Ogoni Nine to be thrown out of the country's history books.