E-Business
The Hanke’s Misery Index: How Africa’s Economic Challenges Are Holding Back the Continent
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.
- 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.
- 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 …….
Galaxy Backbone Limited (GBB) has been ranked first overall in the 2025 Federal Government Website Performance Scorecard.
This is a landmark achievement for Nigeria’s digital economy.
The ranking, conducted by the Bureau of Public Service Reforms (BPSR), is the definitive benchmark for digital excellence and transparency across all Ministries, Departments, and Agencies (MDAs).
Professor Ibrahim Adepoju Adeyanju, managing director and CEO of Galaxy Backbone, received the award during a ceremony in Abuja.
He described the feat as a validation of the agency’s“Nigeria First”data sovereignty strategy and its relentless pursuit of service excellence.
This recognition comes as the Federal Government intensifies its push to achieve a fully paperless civil service by December 31, 2025.
GBB has been the primary architect of this transition through its 1Gov Enterprise Content Management (ECM) platform, which now hosts the operations of almost all federal MDAs.
The award adds to a growing list of accolades for Galaxy Backbone in 2025, following its recent win of the “International Standard Excellence Award for Best IT Service Provider.”
As the central hub for government shared services, GBB’s performance serves as a blueprint for other agencies currently undergoing digital transformation.
With its expanded fiber-optic backbone now covering over 13 states and its secure cloud solutions, Galaxy Backbone remains the cornerstone of Nigeria’s vision to become a leading digital nation by the end of the decade.
Okitipi Samuel, a Nigerian man, has been taken into custody by the Nigeria Police Force for his alleged role in a global cyberattack on Microsoft 365 users.
Benjamin Hundeyin, Force public relations officer, disclosed this on Thursday in Abuja while briefing journalists on the outcome of investigations carried out by the National Cybercrime Centre of the Nigeria Police Force.
Hundeyin said the centre, under the leadership of Ifeanyi Uche, its director and Commissioner of Police, commenced investigations in collaboration with Microsoft, the Federal Bureau of Investigation, the United States Secret Service, and the United Kingdom’s National Crime Agency.
According to him, investigations revealed that a phishing toolkit known as “Raccoon 0365” was used to create fake Microsoft login portals to harvest user credentials and unlawfully access email accounts belonging to corporate organisations, financial institutions, and educational institutions in several countries.
“This investigation commenced following credible intelligence received from Microsoft USA through the FBI, indicating that a malicious phishing toolkit known as Raccoon0365 was being used to create fake Microsoft login portals, harvest user credentials, and unlawfully access the email accounts of corporate organisations, financial institutions, and educational establishments,” Hundeyin said.
He added that between January and September 2025, several reports of unauthorised access to Microsoft 365 accounts were traced to phishing emails designed to mimic legitimate Microsoft login pages, enabling business email compromise, internal phishing, data breaches, and other cyber-enabled fraud.
Hundeyin said digital forensic analysis and cryptocurrency tracing identified wallets connected to the illegal operation.
He noted that operatives were deployed to Lagos and Edo states, leading to the arrest of three suspects identified as Joshua, James, and Okitipi Samuel between September 20 and October 4, 2025.
“Following extensive digital forensic and technical intelligence analysis, the centre conducted cryptocurrency tracing that identified suspicious wallets connected to cash-out schemes.
“Acting on actionable intelligence, operational teams were deployed to Lagos and Edo states, resulting in the arrest of Joshua, James, and Okitipi Samuel. Searches at their residences led to the recovery of mobile devices, laptops, and other digital exhibits linked to the fraudulent scheme,” he said.
Hundeyin identified Okitipi Samuel, also known as “0365” and Moses Felix as the principal suspect and developer of the phishing infrastructure.
He added that investigations confirmed Samuel unlawfully used the email details of one of the arrested individuals without consent to register some of the accounts used in the operation.
The police spokesperson said further investigations revealed that the identities of Joshua and James were used without their consent.
“There was no evidence linking them to the creation or operation of the phishing scheme. They were victims of identity theft,” Hundeyin said.
He said a prima facie case had been established against Samuel for identity theft, unlawful access to computer systems, creation and distribution of malicious software, unauthorised interference with network data, and aiding and abetting fraud.
Hundeyin added that the suspect would be charged under relevant provisions of the Cybercrimes (Prohibition, Prevention, etc.) Act, 2024.
He said the suspect would be prosecuted in Nigeria, noting that the country has the capacity to enforce its cybercrime laws, although extradition could be considered if formally requested through due process.
Hundeyin assured Nigerians that the police, under the leadership of Kayode Egbetokun, inspector-general of Police, would continue to protect the country’s digital ecosystem and urged citizens to practise good cyber hygiene by being cautious when clicking links and sharing personal information online.
Speaking separately, Ifeanyi Uche, director of the National Cybercrime Centre, urged Nigerians to exercise caution online.
Uche advised members of the public to avoid clicking on links from unknown or unexpected sources, noting that such links often contain malware or phishing tools designed to compromise devices and personal data.
He warned that indiscriminate clicking of links or responding to unsolicited emails could lead to unauthorised access to personal and corporate accounts, urging citizens to “wash their cyber hands” by verifying sources before taking action online.
Nigeria has unveiled a comprehensive, multi-pronged strategy designed to localise WSIS+20 commitments. This roadmap accelerates national transformation by prioritising robust infrastructure, transparent internet governance, and advanced cybersecurity through deep stakeholder collaboration.
Unveiled in New York at the Nigerian high-level side event titled “Re-Imagining Digital Cooperation for Sustainable Development: From WSIS+20 Vision to Local Action,” the strategy cements Nigeria’s position as a primary architect of the world’s digital future.
Speaking at the event, the Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, CCIE represented by Director, Corporate Planning and Strategy, Dr. Dimie Shively Wariowei said Nigeria’s approach is deliberately aligned with the four core activity areas identified under the ongoing WSIS+20 review process.
According to him, the focus areas provide a practical framework for translating global digital commitments into measurable national outcomes, ensuring that international resolutions drive inclusive growth and sustainable digital development at the country level.
Inuwa identified digital infrastructure as the foundation of effective localisation, noting persistent challenges in extending connectivity to underserved and remote communities. Beyond infrastructure gaps, he highlighted affordability constraints and digital literacy deficits, stressing that addressing these issues remains central to Nigeria’s digital inclusion drive.
He explained that government alone cannot shoulder the burden of nationwide digital infrastructure deployment, given Nigeria’s vast geographical spread, hence the adoption of collaborative Public-Private Partnership (PPP) models. He disclosed that Nigeria, in collaboration with the World Bank, is implementing a major fibre-optic project spanning about 90,000 kilometres nationwide to boost connectivity.
The NITDA DG also revealed that the current National Broadband Plan, which has guided broadband expansion in recent years, is nearing completion, with plans underway to renew and reposition it for the next five years. The renewed plan, he said, will strategically target increased broadband penetration as a catalyst for digital access and economic growth.
On internet governance, Inuwa referenced Nigeria’s active participation in the Internet Governance Forum (IGF), noting that the country successfully hosted its annual national IGF. He said the forum operates on a multi-stakeholder model that brings together government, the private sector, civil society and the technical community to foster cooperation and informed policy dialogue.
Cybersecurity, he added, remains a critical pillar of Nigeria’s localisation efforts. He cited the existing Cybersecurity Act and ongoing efforts to strengthen the legal framework through a reviewed version currently awaiting parliamentary approval. These measures, he said, are designed to mitigate risks associated with increased internet use and to protect users and critical digital infrastructure.
Inuwa further stressed Nigeria’s ambition to play a leadership role in advancing digital cooperation across Africa through inclusive, multi-stakeholder engagement. He underscored the importance of coordinated national data collection, noting that reliable, country-specific data is essential for tracking progress and presenting Africa’s digital development story on the global stage.
He concluded that sustained engagement and follow-up actions arising from the WSIS+20 review would strengthen digital cooperation among African countries and ensure that global digital commitments translate into tangible national and regional impact.
Stakeholders commended Nigeria’s efforts in the digital space, acknowledging the country’s growing role in shaping Africa’s digital future.
Earlier, Ms. Jennifer Chung, Co-Convener of the Informal Multi-Stakeholder Sounding Board (IMSB), praised Nigeria for convening a broad-based, multi-stakeholder delegation and for its commitment to the meaningful implementation of WSIS+20 outcomes.
Chung stressed the growing demand for localised WSIS follow-up mechanisms, noting that platforms such as the annual IGF, National and Regional IGF Initiatives (NRIs), and youth-led forums are vital for tracking progress towards the 2030 Agenda and Africa’s Agenda 2063.
She described the WSIS+20 review as a critical step toward effective monitoring, reliable data collection and evidence-based evaluation, particularly for developing countries in the Global South. According to her, these measures are essential to achieving WSIS targets and ensuring that no region is left behind.
Drawing parallels with the Asia-Pacific region, Chung noted that challenges around affordable and meaningful connectivity remain widespread across developing economies. She emphasised that expanding broadband penetration and reducing the cost of access are crucial to closing digital divides in Africa, Asia-Pacific and other parts of the Global South.
She also highlighted the need to enable active citizen participation in emerging technologies, including artificial intelligence and future innovations such as quantum technologies, stressing that inclusive digital access is key to maximising the benefits of digital transformation.
Reflecting on the WSIS+20 review process, Chung praised the innovative and inclusive approach adopted through the informal multi-stakeholder sounding board, describing it as one of the first of its kind in global digital governance. She called for sustained collaboration among governments, the private sector, civil society and the technical community to carry the WSIS vision from global commitments to local action.
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