Africa cannot end poverty without tackling inequality — Anyigba, ITUC-Africa Chief Economist
In this interview with CHRISTIAN APPOLOS, Dr Hod Anyigba, Executive Director of the African Labour Research and Education Institute (ALREI) and Chief Economist of the African Regional Organisation of the International Trade Union Confederation (ITUC-Africa),
In this interview withCHRISTIAN APPOLOS,Dr Hod Anyigba, Executive Director of the African Labour Research and Education Institute (ALREI) and Chief Economist of the African Regional Organisation of the International Trade Union Confederation (ITUC-Africa), examines Africa’s widening inequality, and related issues. Excerpts:OXFAM’s latest research paints a disturbing picture of inequality in Africa. As an economist, do you agree with its findings?Absolutely. Oxfam’s research is rigorous and evidence-based, and its conclusions reflect a troubling reality. One of its most striking findings is that just four individuals own wealth equivalent to that of the poorest half of Africa’s population. That level of concentration should concern everyone because it shows how unevenly wealth is created and distributed across the continent. There is nothing wrong with people becoming wealthy. The problem is when economic systems allow wealth to accumulate among a few while millions of workers remain poor, despite contributing to growth. Increasingly, global economic structures favour those at the top through sophisticated tax planning, offshore financial systems and control of strategic sectors such as finance, energy and technology. The result is an economy where prosperity expands for a few while opportunities shrink for millions. That is why inequality has become one of Africa’s defining development challenges. Several African economies continue to record economic growth. Why hasn’t that translated into better living standards for ordinary people?That is one of Africa’s biggest development paradoxes. Many countries report impressive GDP growth, but much of it comes from capital-intensive sectors such as oil, gas and mining, which generate significant revenue but relatively few jobs because they rely heavily on technology and automation. Economic growth alone does not reduce poverty if it fails to create decent employment. Across Africa, millions of workers still earn wages that cannot meet basic living standards. At the same time, governments under pressure to service rising debt often prioritise short-term revenue over long-term structural transformation. The result is that growth figures improve while poverty and inequality persist. Who bears greater responsibility for this growing inequality: external forces or Africa’s own leadership?Both are responsible. Africa’s economies were historically designed to export raw materials, rather than manufactured products, and that pattern largely remains. We continue exporting cocoa, coffee, minerals and other resources while importing finished goods at much higher prices. That limits industrialisation, value addition and job creation. External factors such as unequal trade arrangements, debt dependence and the influence of international financial institutions also shape policy choices. But African leaders cannot be absolved of responsibility. In many cases, political and economic elites benefit from existing systems and therefore resist reforms that would promote broader national development. Lasting change requires both fairer global economic relations and stronger domestic leadership committed to inclusive growth. You often refer to Africa’s political economy. What does that mean in practical terms?Political economy recognises that economic outcomes are shaped not only by markets but also by power, institutions and political decisions. Nigeria’s electricity challenge is a good example. It is not simply a technical problem. Different interests profit from the current system, making reforms difficult. When influential groups benefit from inefficiency, meaningful change becomes harder to achieve. Countries such as South Korea succeeded because governments, businesses and other stakeholders built consensus around long-term industrial development. Africa needs similar political commitment, where national development takes priority over narrow interests and policies remain consistent beyond political transitions. What role can regional integration play in changing Africa’s economic fortunes?Regional integration is essential because many African economies are too small to industrialise effectively on their own. Yet, only about 16 percent of Africa’s trade takes place within the continent, far below levels seen in Europe and Asia. The African Continental Free Trade Area presents a major opportunity to expand markets, strengthen regional value chains and promote manufacturing. Africa must also encourage the free movement of skills, labour and investment, while processing more of its own agricultural products and minerals instead of exporting them in raw form. When Africa produces, trades and adds value within the continent, it creates jobs, raises incomes and reduces dependence on external markets. That is the pathway to more inclusive and sustainable development. If Africa is to break this cycle of poverty and inequality, where should governments begin?The starting point is recognising that no country will develop Africa for us. International partners can support development, but lasting transformation must be driven by African governments through clear vision, strong institutions and deliberate policy choices. Industrialisation should once again become the centrepiece of economic policy. Africa must move beyond exporting raw materials to producing higher-value manufactured goods. That means investing in productive sectors, improving infrastructure and creating an environment where industries can thrive. Industrialisation is not simply about building factories. It is about creating decent jobs, expanding domestic industries, increasing exports and building a strong middle class. Without it, reducing poverty and inequality on a sustainable basis will remain difficult. Africa has one of the world’s youngest populations. How can that become an economic advantage, rather than a burden?Africa’s youthful population is one of its greatest assets, but only if young people have access to decent work. If millions of educated youths remain unemployed, the continent risks increased migration, social instability and lost economic potential. Education systems therefore need to evolve. They must produce innovators, engineers, technicians and entrepreneurs, rather than simply preparing graduates for administrative jobs. Greater investment in science, technology, engineering, vocational education and digital skills is essential. Africa’s young people are talented and resilient. With the right policies, investment and opportunities, they can become the driving force behind the continent’s industrial and economic transformation. You have repeatedly emphasised energy. Why is electricity so central to Africa’s development?Because no country has industrialised without reliable and affordable electricity. Energy powers manufacturing, agriculture, technology, healthcare, education and virtually every productive sector. When electricity is unreliable, businesses rely on expensive alternatives, production costs increase and investment declines. Africa is richly endowed with hydro, solar, wind, natural gas and other energy resources. The challenge is converting those resources into affordable electricity that supports industries, creates jobs and improves living standards. Energy should therefore be treated not merely as an infrastructure issue but as a national development priority. There is a growing view that governments should step aside and allow the private sector to drive development. Do you agree?No. History shows that successful industrialisation has always involved active and strategic governments working alongside the private sector. The state has responsibilities that cannot be outsourced. It provides infrastructure, regulates markets, protects vulnerable citizens and sets long-term development priorities. The private sector is indispensable because it drives investment and innovation, but it performs best within a stable policy environment created by the government. Development is therefore not a choice between the state and the private sector. Sustainable progress comes from a partnership in which governments provide strategic leadership while encouraging responsible private investment. Across Africa, many citizens are questioning whether democracy is delivering development. How do you see that debate?The debate reflects genuine public frustration. Many people feel democratic governance has not significantly improved their lives because unemployment, poverty and weak public services remain widespread. That disappointment partly explains why military interventions have attracted support in some countries. However, military rule is not the answer. The real challenge is strengthening democratic institutions so they deliver tangible improvements in people’s lives. Africa also has rich traditions of consensus-building, consultation and community participation that should inform democratic governance. Citizens ultimately judge governments not only by elections but by their ability to create jobs, reduce poverty, improve public services and uphold accountability. Democracy and development should reinforce one another. When democratic institutions consistently deliver inclusive growth and better living standards, public confidence naturally becomes stronger. Where do workers and trade unions fit into Africa’s development agenda?Workers must remain at the centre of Africa’s development because they create value, drive productivity and sustain economies. Governments make a serious mistake when they formulate economic policies without engaging organised labour. That is why genuine tripartite social dialogue involving governments, employers and workers is essential. Policies developed through consultation are more balanced, enjoy greater public trust and are more likely to succeed. Trade unions should not be viewed as obstacles to reform but as partners in national development. International labour and responsible business standards also recognise workers’ participation as fundamental to sustainable development. When workers are respected and their voices heard, productivity improves, businesses become more resilient and societies become more stable. Some argue that artificial intelligence and automation will eventually replace workers. Do you share that concern?Technology will certainly transform work, but it will not replace the importance of people. Every technological revolution has changed how we work, yet human creativity and innovation have remained central. Artificial intelligence is no different. Behind every intelligent machine is human intelligence. The real challenge is ensuring workers acquire the skills needed for the changing economy. Governments, employers and educational institutions must invest in continuous learning, digital literacy and workforce development so workers can adapt to technological change. Technology should improve human wellbeing, not deepen inequality, and public policy must ensure its benefits are shared widely. How is ITUC-Africa helping trade unions respond to these emerging economic challenges?The role of trade unions has expanded beyond negotiating wages and conditions of service. Today’s challenges require organised labour to engage in broader economic and development debates. At ITUC-Africa, we support our affiliates through research, policy analysis and technical expertise, enabling them to participate effectively in discussions on industrialisation, inequality, climate change, just transition, sovereign debt, trade, youth employment and social protection. We also engage Regional Economic Communities, the African Union and international institutions because decisions taken at those levels have significant implications for African workers. Our objective is to equip trade unions with the knowledge and capacity to influence policies that promote decent work and inclusive development. If you were to identify the pillars of Africa’s long-term transformation, what would they be?The priorities are closely linked. Africa needs coherent industrial policies that promote manufacturing and productive employment; stronger regional integration through the effective implementation of the African Continental Free Trade Area; and long-term national development plans that survive changes in political leadership. The continent must also achieve energy security, retain greater value from its strategic natural resources and invest heavily in education, technical skills, scientific research and innovation. Equally important are capable institutions, accountable leadership and partnerships with the rest of the world based on mutual respect rather than dependency. If these foundations are put in place, Africa has every opportunity to build a more competitive, inclusive and resilient economy. What message would you like to leave with African governments, employers, workers and young people?Africa’s future depends on partnership and shared responsibility. Governments must provide visionary leadership and create policies that support productive investment, quality jobs and strong public institutions. Employers should see workers not merely as a cost of production but as partners in innovation, productivity and national progress. Trade unions, for their part, must continue to engage constructively while holding governments and businesses accountable for policies that affect workers and society. To Africa’s young people, I say this: your creativity, skills and determination will shape the continent’s future. Governments have a responsibility to create opportunities, but young Africans must also embrace innovation, develop their talents and become active participants in building the Africa they want to see. Ultimately, Africa’s transformation will not come through dependency or confrontation. It will be achieved through accountable leadership, evidence-based policymaking, meaningful social dialogue and a shared commitment to turning economic growth into decent work, shared prosperity and dignity for all. If governments, employers, workers and citizens embrace that common purpose, I remain confident that Africa can overcome inequality, unlock its immense potential and build an economy that works for everyone, not just a privileged few. WATCH TOP VIDEOS FROM NIGERIAN TRIBUNE TVBack to School, Back to Business A Fresh StartRelationship Hangout: Public vs Private Proposals – Which Truly Wins in Love?“No” Is a Complete Sentence: Why You Should Stop Feeling GuiltyRelationship Hangout: Friendship Talk 2025 – How to Be a Good Friend & Big Questions on FriendshipPolice Overpower Armed Robbers in Ibadan After Fierce StruggleGet real-time news updates from Tribune Online! Follow us on WhatsApp for breaking news, exclusive stories and interviews, and much more. 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