Saifaddin Galal
Research Expert North Africa
Poverty, inequality and wealth in Africa - statistics & facts
Poverty in Africa is widespread and high in various areas of the continent. In 2019, Sub-Saharan Africa (SSA) had the highest share of people living under the extreme poverty line of 2.15 U.S. dollars per day, with a share of 35.1 percent. The closest region was South Asia, with a significantly lower share of 8.5 percent of the individuals living there. Although this was dropping compared to the early and mid-1990s, it was falling slower than the rest of the regions. In fact, the global share living under extreme poverty dropped to 8.4 percent, significantly lower compared to the share in SSA as of the same year, driven by drops in other regions. Furthermore, out of the 20 countries with the most considerable income inequality worldwide, more than half of them (12 countries) were in Africa.
Although monetary poverty deprives individuals of other social factors, including basic infrastructure and education, it does not reveal the whole story of poverty. Multidimensional poverty is another measure that takes into consideration several factors. Globally, SSA also had significantly higher multidimensional poverty levels worldwide, with a score of 0.29 as of 2021. Moreover, Eswatini, Niger, and Chad topped the African continent in multidimensional poverty.
Regarding clean water, the whole population in Mauritius had access to safe, drinkable water, while Botswana and South Africa had rates of over 90 percent as of 2020. Furthermore, African countries had problems providing their populations with access to electricity. For instance, in East Africa, just over 50 percent of the people had electricity access, with North Africa being the only region with rates as high as 98 percent.
Monetary poverty and multidimensional poverty
Poverty is measured using different indices. On the global scale, monetary extreme poverty is set at 2.15 U.S. dollars a day in terms of Purchasing Power Parities (PPP), revised from previously 1.90 U.S. dollars daily in September 2022. The World Bank announced the change as a result of international increases in prices following the coronavirus (COVID-19) pandemic and the Russia-Ukraine war. In Africa, Mozambique and Malawi had a substantial population living under the extreme poverty line, with over 70 percent of their people living in extreme poverty. On a national level, governments rely on the national poverty line, which is evaluated depending on a basket of goods with food and non-food goods and its consumer price indices (CPI).Although monetary poverty deprives individuals of other social factors, including basic infrastructure and education, it does not reveal the whole story of poverty. Multidimensional poverty is another measure that takes into consideration several factors. Globally, SSA also had significantly higher multidimensional poverty levels worldwide, with a score of 0.29 as of 2021. Moreover, Eswatini, Niger, and Chad topped the African continent in multidimensional poverty.
Food security, undernourishment, and access to water and electricity
The most food-secure country on the African continent is in North Africa, namely Morocco, with a score of 63 points in 2022. South Africa ranks second, with a score of 61.7 points. On the other hand, Burundi, Madagascar, and Sierra Leone are the least food-secure countries in SSA. Moreover, Central and Eastern Africa have a high prevalence of undernourishment among their populations. Both regions registered shares close to 30 percent of their people facing undernourishment, almost 10 percent higher than the continental average.Regarding clean water, the whole population in Mauritius had access to safe, drinkable water, while Botswana and South Africa had rates of over 90 percent as of 2020. Furthermore, African countries had problems providing their populations with access to electricity. For instance, in East Africa, just over 50 percent of the people had electricity access, with North Africa being the only region with rates as high as 98 percent.
Inequality and wealth
One of the issues exacerbating poverty in Africa is the extreme inequality and wealth distribution among African countries. Indeed, South Africa, Namibia, and Zambia had the highest income inequality in the world, with a Gini coefficient of nearly 63, 59, and 58 points, respectively. Moreover, the richest 10 percent in Africa held over 71 percent of the wealth on the continent, while the poorest 50 percent held only around 1.2 percent. In addition, certain countries concentrated private wealth in Africa. South Africa, Egypt, and Nigeria had more high net worth individuals, at 37,800, 16,100, and 9,800 people, respectively.
