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The Hanke’s Misery Index: How Africa’s Economic Challenges Are Holding Back the Continent

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By Evans Woherem, Ph.D

Introduction

Unleashing the economic potential of any nation requires unwavering commitment and a clear vision. However, Africa, a diverse continent abundant in resources and human capital, faces numerous challenges that impede its development and progress. Political unrest, corruption, poverty, human rights violations, and economic instability cast a dark shadow over many African nations, intertwining to create pervasive challenges that foster instability, hamper development efforts, and uproot countless lives.

These claims are supported by numerous studies, reports, and data. Indices such as the Ibrahim Index of African Governance and the Global Corruption Barometer by Transparency International shed light on governance and corruption levels, revealing systemic issues that contribute to overall distress. Reports from esteemed international organizations like the United Nations and the World Bank offer in-depth analysis, highlighting the multidimensional nature of the problems, including the impact of political instability and human rights violations on societal well-being.

To gain a clearer understanding of the economic challenges faced by African nations, we can look at the 2022 Hanke’s Annual Misery Index. This index provides insight into the economic hardships experienced by countries by considering various indicators. It is a composite measure that takes into account the year-end unemployment rate (multiplied by two), inflation rate, bank-lending rates, and the annual percentage change in real GDP per capita. The index combines these elements to yield the Hanke’s Annual Misery Index (HAMI) score, with higher scores indicating greater economic misery.

According to the 2022 HAMI scores, several African countries ranked among the 50 most severely afflicted nations. Zimbabwe claimed the unfortunate title of the world’s most miserable country with a score of 414.7, followed by Sudan (176.1) and Angola (93.518). Other countries on the list included Ghana (86.8), South Africa (83.492), Rwanda (69.192), Botswana (64.023), Madagascar (63.6), Malawi (63.5), Eswatini (63.1), Gabon (62.4), Sao Tome and Principe (62.3), Congo (Brazzaville) (61.5), Ethiopia (61), Libya (60.3), Namibia (55.7), Lesotho (51.6), Algeria (50.2), Nigeria (47.2), Tunisia (46.905), and Mauritania (45.4).

These nations confront profound challenges and overwhelming hardships, with their misery index scores reflecting the weight of inflation, unemployment, and burdensome lending rates.

The consequences of these elevated misery index scores extend widely within the affected countries. Scarce resources that could otherwise be invested in infrastructure, education, and healthcare are diverted towards addressing immediate needs, impeding long-term development efforts.

Additionally, political instability and human rights abuses erode social cohesion, intensify societal divisions, and constrain opportunities for dialogue and progress. Also, the displacement of millions of people places added strain on already fragile systems, burdening host communities and affecting regional stability.

Furthermore, these consequences transcend national boundaries. The high misery index scores contribute to a negative portrayal of the continent, potentially dissuading foreign investment and impeding economic cooperation. Consequently, the perpetuation of stagnation and economic hardships fosters a cycle of poverty, constraining opportunities for future generations and impeding the achievement of sustainable development goals.

Addressing the complex challenges facing Africa necessitates a comprehensive approach involving good governance, anti-corruption measures, poverty reduction strategies, human rights protection, economic stability, regional cooperation, and technological innovation.

By confronting political unrest, corruption, poverty, and economic instability while drawing inspiration from successful models, African nations can pave the path toward sustainable economic development, social stability, and improved livelihoods.

The following sections will delve deeper into each challenge, exploring their root causes, examining their implications, and discussing potential strategies and solutions.

By recognizing and understanding the hurdles faced by African nations, we can foster informed discussions and contribute to the formulation of effective policies that foster inclusive growth, shared prosperity, and the safeguarding of human rights, thereby transforming Africa’s economic landscape.

Economic Challenges in African Countries

The economic challenges faced by African countries are a matter of concern, with various nations experiencing significant difficulties. This section explores the economic struggles of Zimbabwe, Sudan, Angola, Ghana, and other African nations, shedding light on their specific challenges and rankings on the Misery Index.

This index, developed by Steve Hanke, a professor of applied economics at Johns Hopkins University, takes into account both the economic performance and the socioeconomic conditions of countries’ populations. Additionally, it highlights the contrast between countries facing misery and those achieving greater happiness, underscoring the uneven progress across the continent.

  1. Zimbabwe’s economic challenges and unfortunate ranking

Zimbabwe’s economic challenges have led to an unfortunate ranking as the most miserable country in the world for the second consecutive year, according to the 2022 Hanke’s Annual Misery Index. Several factors contribute to this ranking, notably the country’s staggering inflation rate, which reached 243.8% in 2022. Such high inflation erodes the value of the local currency, making it increasingly challenging for individuals to afford basic necessities and maintain a stable standard of living.

Moreover, Zimbabwe faces the hurdle of high lending rates, standing at 131.8%. These elevated borrowing costs make it difficult for businesses and individuals to access affordable credit, hindering investment and impeding economic growth. The lack of adequate financing opportunities stunts the economy’s expansion, resulting in stagnant development.

Trade integration, or rather the lack thereof, is another critical aspect impacting Zimbabwe’s economic situation. The decline in trade integration has restricted the country’s ability to acquire new technologies and attract investment. Trade integration plays a vital role in facilitating the sharing of knowledge, resources, and innovation among countries, which significantly contributes to economic growth. Without this avenue for collaboration and access to new opportunities, Zimbabwe finds it challenging to develop and improve its economic prospects.

The burden of debt and arrears to international financial institutions (IFIs) further exacerbates Zimbabwe’s challenges. The country’s substantial level of debt, coupled with its inability to make timely payments to IFIs, hampers its capacity for investment and development.

Instead of directing resources towards productive sectors and infrastructure, Zimbabwe must allocate a significant portion of its income to debt repayments. Furthermore, the accumulation of arrears makes it increasingly difficult for the country to obtain new loans, thereby limiting its potential for growth.

Consequently, a considerable portion of the Zimbabwean population is grappling with severe financial difficulties, struggling to meet their basic needs. The combination of high inflation, exorbitant lending rates, limited trade integration, and a significant debt burden has created a challenging environment for individuals and businesses alike. Addressing these issues through effective economic policies and reforms becomes crucial to alleviate the financial hardships faced by Zimbabweans and foster sustainable development.

  1. Sudan’s Economic Challenges and Political Instability

Sudan has been grappling with a range of significant economic challenges that have had a substantial impact on the country. One of the primary concerns is the soaring inflation rate, which reached a peak of 220.71% in April 2022.

However, according to projections by the African Development Bank, there is hope for improvement, with inflation expected to moderate to 83.2% in 2023 and further decrease to 75.5% in 2024.

Simultaneously, Sudan has witnessed a rise in the poverty rate, which reached 66.1% in 2022. This increase is partly attributed to the high unemployment rate of 20.6% during the same year. The economic hardships faced by the Sudanese population are further exacerbated by political instability.

In addition to these challenges, Sudan has been grappling with an ongoing armed conflict since 2011. This protracted conflict has resulted in significant human casualties, with over 500 lives lost, and has displaced more than 1 million individuals.

Furthermore, Sudan is confronted with environmental challenges, including land degradation, temperature increases, droughts, floods, erratic rainfall, and locust invasions. These environmental factors have had a detrimental impact on agricultural output, impeded GDP growth, and destroyed livelihoods.

Despite these formidable challenges, Sudan boasts abundant natural resources, such as arable land, livestock, and minerals. However, the full utilization of these resources has been hindered by financing deficiencies.

Effectively addressing the economic challenges faced by Sudan and overcoming political instability are pivotal steps towards improving the country’s economic prospects and enhancing the well-being of its citizens.

To be Continued …….


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Government, Industrial Sectors became the Primary Targets for Cybercriminals in 2025 – Report

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According to the global report by Kaspersky Security Services ‘Anatomy of a Cyber World’, the government sector has emerged as the most targeted sector for the second consecutive year, accounting for 19% of all high-severity incidents in 2025.

The industrial sector closely followed at 17%, while the IT sector rose to third place with 15%, displacing finance from the top three targeted industries.

The ‘Anatomy of a Cyber World’ is a comprehensive global report drawing on incident statistics from Kaspersky Managed Detection and Response, Kaspersky Incident Response, Kaspersky Compromise Assessment and Kaspersky SOC Consulting.

This report sheds light on the most prevalent attacker tactics, techniques and tools, as well as the characteristics of detected incidents and their distribution across regions and industry sectors.

Building on these findings, the report reveals that government bodies continued to be the most targeted sector in 2025. A deeper examination of the root causes of attacks within this sector uncovers that Advanced Persistent Threats (APTs) were the most common, accounting for 33,3% of incidents.

This trend highlights the increasing sophistication of adversaries who persistently evolve their tactics to bypass automated protection. Additionally, 18,9% of government organisations experienced social engineering attacks, underscoring that employees remain a critical entry point for cyber threats.

This dual vulnerability, from both advanced persistent attackers and social engineering campaigns, underscores the need to strengthen not only technology but also organisational resilience.

Implementing measures such as role-based access control and limiting privileges can significantly reduce the impact of compromised accounts, particularly in large, distributed government environments.

The industrial sector presents a different but equally concerning profile. Threats in industrial environments are distributed with striking uniformity: APT-driven incidents constitute 17,8%, malware 14,9% and social engineering 13,9%.

This pattern suggests that industrial organisations attract a broad range of adversaries with different capabilities and objectives, rather than being primarily targeted by a single type of threat actor. Notably, confirmed cyber exercises like red teaming accounts for 22,8% of incidents in the sector, the highest share among the top three industries, reflecting growing investment in proactive security validation among industrial organisations.

In contrast, the IT sector shows a markedly different pattern. With 41% of incidents attributed to human-driven APT attacks, the highest rate across all sectors, IT organisations are clearly a priority target for sophisticated threat actors seeking to exploit trusted relationships and scale their impact through supply chains.

APT traces, which are artifacts from previous advanced persistent threat activity, were identified in an additional 17% of cases, while social engineering accounted for 11%. In contrast, red teaming represents only 9% of IT incidents, suggesting that proactive security testing remains underutilised relative to the sector’s actual threat exposure.

Interestingly, the finance sector was displaced from the top three targeted industries. According to the report, red teaming in this sector accounts for 36,1% of incidents, reflecting a mature, compliance-driven approach to proactive defence, while confirmed APT activity remains comparatively low at 11,5%.

This pattern indicates that sustained investment in security assessment can effectively enhance a company’s ability to identify vulnerabilities early, avoiding costly breaches and reducing the risk of significant damage to reputation and operations.

“Government, industrial and IT organisations consistently attract sophisticated adversaries because of the strategic value of what they hold, operate and connect to geopolitical intelligence, critical infrastructure and global supply chains respectively. The 2025 data confirms that these attacks are not opportunistic: they are targeted and often aimed at establishing persistent access.

Each of these sectors needs to operate on the assumption that determined attackers will find a way in, and focus their defences on early detection, rapid containment and minimising the window of exposure. So, proactive threat hunting, continuous monitoring and regular compromise assessments are no longer optional for organisations of any size across these industries,” comments Sergey Soldatov, Head of Security Operations at Kaspersky.

 


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4 Nigerian Startups Selected to Join Milestone 10th Google for Startups Accelerator Africa Cohort

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Four Nigerian technology startups – Bani, MasteryHive AI, Regxta, Termii – have been selected to join the 10th cohort of the Google for Startups Accelerator Africa.

4 Nigerian Startups Selected to Join Milestone 10th Google for Startups Accelerator Africa Cohort

Chosen from an exceptionally competitive pool of nearly 2,600 applications, these innovators are part of a final pan-African group of 15 companies. With an acceptance rate of less than 1%, their selection highlights the immense technical talent and resilience emerging from Nigeria’s digital ecosystem.

The selected Nigerian startups are utilizing Artificial Intelligence to address critical local and regional challenges:

Bani : A cross-border payments infrastructure platform eliminating settlement delays for African businesses trading globally.

MasteryHive AI : An AI-native platform automating transaction reconciliation, fraud detection, and AML monitoring.

Regxta : Combines alternative data-driven credit scoring with a hybrid digital-agent distribution model to deliver financial products to unbanked micro businesses.

Termii : An AI-native communications infrastructure platform ensuring reliable financial messaging for banks and fintechs.

African tech founders are actively solving fundamental infrastructural challenges, bridging gaps in financial inclusion, healthcare, and supply chains with complex AI. The continent’s venture ecosystem showed remarkable resilience by raising $3.9 billion in 2025. However, scaling deep-tech solutions requires specialized technical infrastructure, advanced cloud capabilities, and strategic mentorship to complement this capital. Accelerator programs provide these exact tools, ensuring local innovations can sustainably grow into businesses that power the continent’s digital economy.

Gbolade Emmanuel, CEO of Nigeria-based Termii, noted: “At Termii, we’re building AI-powered infrastructure that ensures financial transactions don’t fail, from login PINs to payment OTPs and fraud alerts. The Google Startup Accelerator is helping us accelerate our AI roadmap and scale globally, and even in the first week, access to technical support and insights has been incredibly valuable for our next phase of growth.”

“We are absolutely thrilled to welcome these exceptional founders into Class 10,” said Folarin Aiyegbusi, Head of Startup Ecosystem, Africa. “African startups are driving essential economic growth and social development. Our role is to serve as a supportive partner, providing these developers and founders with the technical infrastructure, mentorship, and global network they need to scale their solutions and amplify their real-world impact.”

Running from April 13th to June 19th, 2026, the hybrid program will provide the 15 startups with dedicated guidance from experienced mentors and industry experts, alongside hands-on technical workshops focused on AI and machine learning.

Since launching in 2018, the Google for Startups Accelerator Africa program has supported 106 startups from 17 African countries, empowering them to collectively raise over $263 million and create more than 2,800 jobs.

For more information on the full list of 15 startups participating in Class 10, please visit the Google Africa Blog at https://blog.google/intl/en-africa/company-news/meet-the-15-startups-joining-the-google-for-startups-accelerator-africa-class-10/.


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Nigeria’s Innovation Flywheel: Turning Early AI Uptake into Economic Acceleration

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By: Deen Yusuf, Managing Director, Microsoft Nigeria

Nigeria has never struggled with ingenuity. It is a place where innovation grows from necessity, and where developers, entrepreneurs, and problem solvers consistently push past limitations to build what does not yet exist.

Nigeria’s innovation flywheel: Turning early AI uptake into economic acceleration

Deen Yusuf, Managing Director, Microsoft Nigeria

But in the era of artificial intelligence, ingenuity alone is no longer enough. The nations that will lead are those that not only innovate, but also ensure AI reaches workers at every level of the economy, because innovation without diffusion is simply potential left on the shelf.

Yet research shows this diffusion is far from guaranteed. While global generative AI usage continues to rise, the adoption gap between the Global North and Global South is widening at almost twice the rate.

Even the United States, despite leading in frontier AI, has fallen behind smaller, highly digitized economies in workforce adoption.

It’s clear that access constraints, not a lack of creativity or ambition, pose the greatest threat to equitable AI progress. For Africa, and for Nigeria in particular, this risk cannot be ignored.

The barriers slowing Nigeria’s AI acceleration

Microsoft’s Global AI Adoption in 2025: A Widening Digital Divide report shows that though Nigeria’s appetite for innovation remains strong, the underlying systems required to translate that energy into mainstream adoption are underdeveloped. While startups, government institutions, researchers, and investors are actively exploring AI applications across multiple sectors, national adoption has risen only marginally, up just 0.6 percentage points, from 8.7 percent in the first half of 2025 to 9.3 percent in the second half of the year.

Access remains the most immediate constraint. Connectivity gaps, inconsistent speeds, and high data costs limit the everyday use of AI tools. With median mobile speeds of 46.78 Mbps and fixed broadband at 27.54 Mbps, Nigeria ranks below the global benchmarks needed for reliable, cloud-based AI services.

Skills shortages create a second barrier. While momentum is building, Nigeria still requires the specialized talent required to build, integrate, and manage advanced AI systems. Talent emigration further widens the gap.

Language and localization gaps compound the challenge. Most large language models leverage English-language training data, excluding many Nigerian languages and limiting the cultural relevance of AI tools in a country with rich linguistic diversity.

Finally, fragmented regulation slows progress. Overlapping mandates across agencies create uncertainty around governance, privacy, and security, fueling public hesitation and reinforcing fears around job displacement.

Learning from global AI leaders

The fastest-accelerating countries, including the UAE, Singapore, Norway, Ireland, France and Spain, share a clear blueprint: early investment in digital infrastructure, robust skilling ecosystems, and decisive government leadership.

The impact of this approach is evident in the UAE, where the AI Diffusion Report shows national adoption rising from 59.4 percent in the first half of 2025 to 64 percent in the latter half, a 4.6-percentage-point increase.

The Emirates’ AI advantage didn’t materialize overnight. It was built deliberately and with years of foresight. In October 2017, five full years before ChatGPT captured global attention, the UAE appointed the world’s first Minister of State for Artificial Intelligence. That same year, the country launched a national AI strategy covering nine priority sectors and establishing governance frameworks.

This sequencing proved consequential. When the current generative AI wave arrived, UAE residents encountered a familiar technology, one their government had been deploying in public services and discussing in national conversations for half a decade. The foundation was already in place.

Regulatory pragmatism has been a key driver of the UAE’s rise as a global AI leader. Early on, the country established sandbox environments that allowed controlled experimentation and learning. It then introduced targeted visa programs to attract and retain AI talent, ensuring the ecosystem could scale.

This was reinforced by principle-based guidelines that offered clear direction without stifling innovation or creating compliance paralysis.

Over time, this approach built trust in the most durable way possible: through proven outcomes and AI systems that deliver value in everyday transactions.

For Nigeria, a similar path begins with deliberate government action through initiatives such as 3MTT and Project Bridge.

These programs lay the groundwork for strengthening talent and infrastructure, expanding access and connectivity, and accelerating digitization across ministries, departments and agencies.

Professional bodies also have a critical role to play. Through training, workshops, and sector-specific guidance, they can demystify AI, correct misconceptions, and help workers understand its benefits.

Early adopters already show what is possible. Through its advanced analytics-driven marketing platform, Terragon Group is helping its clients achieve returns of up to 900 percent, while financial services group Access Holdings has significantly accelerated product development cycles using AI-driven tools.

Local language relevance is equally essential. South Korea’s surge in AI adoption, for example, rising from 25th to 18th in the global rankings, only accelerated once AI models became highly effective in Korean. Nigeria can follow this path by investing in indigenous language AI.

Initiatives such as Awarri and Paza, a recent collaboration with Microsoft Research, are starting to show how culturally rooted AI tools can expand access and inclusion.

Nigeria stands at a pivotal moment. The ingenuity is here; the ambition is here, and now the pathway is clear.

With focused investment in infrastructure, talent, localization, and forward-leaning governance, the country can move from early promise to broad-based AI participation, ensuring AI becomes a driver of inclusive growth and opportunity for every Nigerian.


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