Wealth or income inequality is a major dimension of social stratification which also describes the unequal distribution of wealth between individuals, groups, populations, social classes, or countries.
The rising level of global poverty has been reported as the major cause of global inequality. The 2023 Multidimensional Poverty Index (MPI) reports that a fair share of the 1.1 billion poorest people are based in Sub-Saharan Africa making the continent the most affected by wealth inequality.
According to Credit Suisse’s Global Wealth Databook 2023, total global wealth stood at $454.38 trillion by the end of 2022 while Africa’s total wealth was put at $5.9 trillion during the same period.
8 African countries with the highest wealth inequality
Using the Gini coefficient of countries which describes income inequality, Insider Monkey has revealed the top African countries with the highest wealth inequality. A Gini coefficient of 0 represents perfect equality and a Gini coefficient of 100 means perfect inequality.
| S/N | Country | Gini Coefficient |
|---|---|---|
| 1 | Lesotho | 91.10% |
| 2 | Zambia | 89% |
| 3 | South Africa | 88.80% |
| 4 | Papua New Guinea | 88.60% |
| 5 | Botswana | 88.50% |
| 6 | Equatorial Guinea | 87.10% |
| 7 | Namibia | 87% |
| 8 | Nigeria | 86.50% |
InsiderMonkey reports that Africa holds a greater part of global wealth inequality with countries like Lesotho, Zambia, South Africa, Botswana, Equatorial Guinea, Namibia, and Nigeria having the highest wealth inequality.
According to the World Inequality Report, the top 10% of the richest people currently take away approximately 52% of global income, compared to 8.5% earned by the poorest people in the world.
This situation is further explained using the famous Pareto Principle developed in the 1890s. The principle, named after the Italian economist, Vilfredo Pareto describes the unequal allocation of wealth in society.
Pareto famously observed that just 20% of the society's population controlled 80% of society’s wealth. The concept is also known as the “80-20 Rule”.