Oxfam: WEF Africa an opportunity to shape more equal economies
Oxfam in South Africa is challenging African leaders to champion new economic models that are 'fit for the future' and to look at a more human economy.
The World Economic Forum on Africa (WEF) is expected to kick off in Durban on Wednesday.
According to Oxfam South Africa's latest report, 'Starting with People - A Human Economy Approach to Inclusive Growth in Africa', new data reveals that Africa's inequality crisis is greater than feared.
Seven of the 20 most unequal countries in the world are African: Swaziland is the world's most unequal, now closely followed by Nigeria.
According to the report, three billionaires own the same wealth as the poorest half of the population, around 28 million people, in South Africa.
"Decades of record GDP growth have benefited a wealthy elite but left millions of ordinary Africans behind. As a consequence, poverty has declined more slowly in Africa than any other region, and pessimistic growth forecasts predict that a further 250 to 350 million people could be living in extreme poverty within the next 15 years," says the report.
The report states the human cost is felt the most by women, young people and children.
In middle-income Nigeria over ten million children do not go to school, and one in ten do not reach their fifth birthday.
"Inequality in Africa is fuelling poverty, fracturing our societies, and stifling the potential of millions of people," says Winnie Byanyima, Executive Director of Oxfam and co-chair of WEF Africa 2017.
"It will become a major drag on economic growth. Africa should stop imitating the failing policies of Europe and America and develop a new economic model that works for all Africans - not just the fortunate few."
"African leaders must not kid themselves. If the wellbeing of people and the protection of the environment are our primary aims, rather than a hoped-for by-product of free markets, we need to explicitly design economies to achieve these things," says Byanyima.
The report sets out how Africa's political and business leaders can use economic and taxation policy and social spending to build economies that work for all.
The report calls on leaders to invest in economic activities that support people's livelihoods.
"Over half of Africa's total labour force works in agriculture, yet smallholder agriculture, that offers the greatest potential to reduce poverty, has been neglected for decades. More investment is needed to provide extension workers to train men and women, access for all to credit, technology, and social protection; and support for light manufacturing and agro-processing that creates value for producers and will meet the demand from growing urban markets. Africa currently imports a third of its processed food and drinks - a far higher share than Asia or Latin America," states the report.
Byanyima says leaders should resist the pressure to privatise education, invest in public services particularly healthcare and education - and remove barriers, such as user fees, which prevent the poorest people in society from accessing these services.
"Oxfam is not advocating a return to Africa's economic past - we are championing economies that are fit for the future," says Byanyima.