Question of the Week - Part 2: "Are there rich people in Africa?"

I'm a bit late posting this question, like two weeks late. This is from someone in Korea.

Question: Are there rich people in Africa?

Answer: Yes. Plenty. I know several Western news media tend to mostly show Africans in poverty (which there's a lot of that, too), but they also forget that several African countries are leaders in production of some resources we take for granted, like gold, diamonds, oil, to name a few. Of course, where is all this money going? Mainly to the African businesses owned by Africans, of course!

The wealthiest black person on the planet is Nigerian and lives in Nigeria. His name is Akilo Dangote, founder and owner of one of Africa's largest multinational conglomerates, Dangote Group. I mentioned him before on my blog in regard to solar energy in Africa, particularly in Angola, South Africa and Nigeria.

There's a list of the wealthiest Africans on TheRichest.org, and Akilo Dangote is, of course, at the top.

Nigeria, Angola and South Africa Should Invest in Solar Power

Nigeria, Angola and South Africa are three of the most prosperous countries in Africa. Nigeria and South Africa are the most influential not only throughout the continent, but increasingly in the world. If these two countries begin to focus more on green energy alternatives, not only will they fuel their economies, but they will be Africa's green leaders. If Angola follows suit, it could potentially be in the top 5 of Africa's largest economies and people could even move out of poverty at rates like those in China and Brazil.

An obvious resource, Africa receives a lot of solar energy throughout most of the year. In fact, North Africa alone receives so much that it is estimated that there's more than enough to provide electricity not only for the region, but also for neighboring Europe and the Middle East. Imagine the potential of other African nations combined. Furthermore, it is a clean and renewable resource, which translates to less pollution (which means fewer people being sick) and poverty reduction. It can also be used on a small scale to power remote towns and villages, as is being done in several African countries now.

Let's look at Nigeria first. Nigeria is currently Africa's largest oil producer and it's third largest economy (maybe the second, since Egypt still has a lot of stability issues at the moment). Also, Nigeria is still plagued with infrastructural issues, the main complaint being it's electrical grid. If a Nigerian invests in this (especially if it is the world's richest black man, Akilo Dangote, owner and founder of Dangote Group, West Africa's largest conglomerate), the money to be made would be incredible and the jobs created would be astounding. On top of that, the energy provided would affect every aspect of business and raise the living standards (Nigeria has one of the highest in Africa). For immediate solutions, Nigerian governments on the state or even federal level could give incentives to businesses and developers that invest in solar energy. What Nigerian would not want to wave good-bye to their loud, smokey generator? I know the businesses would be more than happy. Mr. Dangote, I seriously think this should be your next endeavor. You will not only make a great investment for yourself, but also for you country in one of the best ways.

Angola, which has experienced astronomical growth since it's nearly three decade civil war has ended in 2002, is quickly becoming an African powerhouse - and the world has taken notice. It's global notoriety has even made it's capital and largest city Luanda the world's most expensive for expatriates. However, Angola currently has one of the widest income gaps in Africa, and most of it's poverty is in the rural areas. Investment in small to medium scale solar energy projects, especial in remote areas, would close the income gap and even quicken the pace of developing schools, hospitals and other public facilities that have been closed or destroyed during the war. All of these things are necessary for continued economic growth and to raise the standard of living and Angola is currently relying on their oil wealth.

Finally, we have South Africa, Africa's largest economy and sometimes even considered with the BRIC. South Africa has not been have infrastructural problems or a dire public service problem like Nigeria and Angola respectively, but they are going to have a severe environmental problem if they don't stop investing in coal plants. Last year, the World Bank contributed nearly $3.75 billion to South Africa to construct these toxic factories in an effort to avoid a power shortage. Seriously, that is one of the worst excuses I've heard. We know a power shortage is looming, but resorting to the dirtiest option will simply cause more problems and only prevent one.

Despite each country's unique problems, there is one problem each country has: lack of human capital. Most importantly, for any economy to grow, it needs human capital. If there is not enough power, there's no way to train the people needed to fuel the economy. If people are suffering disease due to the pollutants from a coal plant or from mining coal, that would mean less people able to work. If homes are without electricity, how will these workers store food and how will their children do their homework? A common saying in Nigeria is "charity begins at home." If you're not doing well at home, how will be able to do well at work. Investing in solar energy does more than keep the lights on. It's a lucrative business investment that can last a lifetime with little to no harm to the environment and the people.