World Economic Forum in Africa

Yesterday, the World Economic Forum Africa kicked off in the Rwandan capital Kigali. Oxfam International's CEO, Winnie Byanyima, is on hand to discuss growth, resource allocation and other key issues with politicians and business leaders from across the continent. Winnie will use her voice to highlight some of the challenges facing the continent, focusing on tax evasion and growing economic disparities.

Major challenges
Africa is currently facing a series of tough challenges in the form of slowing economic growth, falling commodity prices, tax evasion and widening economic gaps. A new report by Oxfam shows that recent strong economic growth has not benefited everyone. In other words, ordinary Africans have not benefited from the increased wealth that has instead accrued to a small elite, fueling growing inequality.

Among other things, the report shows that:
- Seven of the world's most unequal countries are in Africa
- The continent's 10 richest individuals have a combined wealth equivalent to Kenya's combined GDP
- The number of Africans living in poverty has increased by 50 million since 1990
- The assets hidden away by wealthy Africans in tax havens would be enough to educate all African children

Africa's economic growth has mainly benefited a small group, whose power and influence has grown. This is evident in countries like Nigeria, where poverty has increased while the country has enjoyed positive economic growth. Another example is Equatorial Guinea, which today has a higher per capita income than Spain, but a higher infant mortality rate than Burundi - one of the world's poorest countries.

Widening economic gaps
Extreme inequality is problematic for several reasons: it hampers economic growth and the development of a broad middle class. Widening economic gaps also perpetuate other problems such as gender inequality. In Ethiopia, 88% of boys from wealthy families in urban areas have access to education. For poor girls in rural areas, the corresponding figure is 30%.

In many countries, women bear the main responsibility for unpaid work in the home. Women living in sub-Saharan Africa spend an average of five billion hours a year fetching water - work that is heavy, dangerous and unpaid.

The way forward
Reversing the trend and tackling extreme inequality requires comprehensive action in a number of areas. Oxfam is calling on African governments to review how revenues from the sale of key natural resources are distributed. Increased investment in public services such as education and healthcare can help more people lift themselves out of poverty.

World leaders must also work together to tackle tax evasion and corruption by closing loopholes in existing tax laws. Many African countries are losing important tax revenues every year that could finance essential public services and infrastructure projects.

Poor countries lose around USD 170 billion every year due to tax evasion. This is money that could be used to finance better water infrastructure so that more people have access to clean water.