E-Business
The Hanke’s Misery Index: How Africa’s Economic Challenges Are Holding Back the Continent Part 3
By Evans Woherem, Ph.D
Addressing the Root Causes
The section highlights the urgent need to address the root causes of poverty and economic challenges in many African nations. It emphasizes the importance of decisive action, effective leadership, and learning from successful examples to overcome these challenges and foster sustainable development.
The section also covers various key areas, including addressing immediate challenges, implementing sustainable economic strategies, promoting infrastructure development and regional integration, and the significance of unity among African nations.
- Addressing Immediate Challenges
Addressing the immediate challenges faced by African nations, as highlighted by the Hanke’s Annual Misery Index of 2022, is crucial. This section emphasizes the importance of tackling inflation, unemployment, and poverty-contributing factors to create an enabling environment for economic growth and improved well-being. To overcome these challenges, decisive action and effective leadership are required, prioritizing the well-being of citizens and implementing sustainable economic policies.
In order to accelerate development, African countries need to learn from successful examples. By studying countries that have transformed their economies and improved living standards, Africa can adapt their strategies and adopt a comprehensive, multi-pronged approach. This approach should include economic reforms, investments in education and skills, promotion of entrepreneurship, strengthening of institutions, improvement of infrastructure, and fostering regional cooperation.
By addressing the challenges highlighted by the Misery Index, African nations can create a favorable environment for economic growth and improved well-being. Effective leadership, learning from successful experiences, and implementing a comprehensive approach are essential for overcoming the present challenges and setting Africa on a sustainable path of development and prosperity.
- Implementing Sustainable Economic Strategies
To foster sustainable economic growth in Africa, it is crucial to address the root causes of economic challenges with comprehensive and innovative strategies. This includes implementing prudent fiscal policies to combat inflation effectively, controlling government spending, managing public debt, promoting transparency and accountability, and tackling waste and corruption in government spending. Additionally, creating sustainable employment opportunities through investments in sectors with growth potential, promoting entrepreneurship, vocational training programs, and public-private partnerships can empower individuals and drive economic progress.
Political stability is paramount for long-term economic growth. Fostering peaceful and inclusive societies, resolving conflicts through dialogue, and strengthening democratic institutions are key aspects to focus on.
By promoting the rule of law, protecting human rights, ensuring citizen participation, and establishing transparent governance structures, African nations can create a favorable environment for investment and sustainable development, attracting investments and encouraging the establishment of transparent governance structures.
Facilitating affordable and accessible credit is vital for stimulating investment and economic growth. African governments should work towards creating an enabling environment for credit access by implementing sound financial regulations, promoting competition among financial institutions, improving financial literacy, and empowering individuals and businesses with favorable credit terms through measures like credit guarantees for small enterprises.
- Promoting Infrastructure Development and Regional Integration
To achieve a sustainable future, Africa must prioritize infrastructure development and regional integration. Addressing Africa’s reliance on imported energy sources is a critical aspect of this endeavor.
By promoting decentralized renewable energy systems, such as mini-grids and community-owned projects, Africa can provide electricity access to remote areas while involving local communities in renewable energy initiatives.
These decentralized systems not only reduce dependence on imports but also yield cost savings, enhance energy security, lower emissions, and stimulate local economic growth. Successful implementation of these projects necessitates government support, financial incentives, and collaboration with the private sector.
In addition, digital connectivity and financial inclusion are instrumental in driving economic growth and development in Africa. By expanding broadband infrastructure and leveraging blockchain technology, Africa can revolutionize access to digital services, e-commerce, and education, thereby uplifting millions of lives.
This expansion of internet access extends the benefits of online banking, e-commerce platforms, and educational resources to underserved rural communities, fostering communication and collaboration between businesses and government agencies. Blockchain technology ensures secure and transparent financial transactions, effectively curbing fraud and corruption and bolstering trust in financial systems. Together, digital connectivity and financial inclusion empower Africa, promoting inclusivity and prosperity.
Furthermore, sustainable infrastructure development plays a crucial role in building a greener and more efficient future for Africa. By prioritizing green infrastructure projects, such as renewable energy-powered transportation systems and energy-efficient buildings, Africa can significantly reduce greenhouse gas emissions, improve air quality, and generate employment opportunities in the clean energy sector. Integrating smart city concepts further enhances efficiency by leveraging technology to optimize traffic flow and monitor energy usage, promoting sustainable urban development.
To drive economic progress, regional integration and trade promotion are vital for Africa. Strengthening regional economic communities encourages collaboration, reduces trade barriers, and harmonizes regulations, facilitating cross-border investments.
Developing robust transport and logistics networks enhances connectivity, enabling seamless movement of goods and services between businesses and markets. By promoting cross-border investments, Africa can leverage new technologies, skills, and job opportunities, fostering sustainable growth and development across the continent.
In conclusion, promoting infrastructure development and regional integration is crucial for Africa’s sustainable future. By focusing on decentralized renewable energy systems, digital connectivity, sustainable infrastructure, and regional collaboration, Africa can overcome challenges, drive economic growth, and foster prosperity.
- Uniting African Nations for Economic Progress
The unity and cooperation among African nations through regional or continental integration are paramount for driving economic progress. Currently, intra-Africa trade represents just 14.4% of total African exports. However, according to forecasts from the United Nations Conference on Trade and Development, implementing the African Continental Free Trade Area (AfCFTA) has the potential to boost intra-Africa trade by approximately 33% and reduce the continent’s trade deficit by 51%. The relatively low levels of intra-regional trade in Africa compared to other regions like Europe (69%), Asia (59%), and North America (31%) underscore the need for enhanced collaboration within the continent.
The urgency for African countries to unite at the regional or continental levels cannot be overstated. Many African nations lack the necessary size and strength to effectively operate on their own. Encouragingly, the ongoing efforts made by East African countries towards unity serve as an inspiring example for the rest of Africa, emphasizing the importance of cooperation in addressing pressing economic challenges. Prompt adoption of the East African model by other African countries and regions is essential.
The African Union (AU) has already taken significant strides in tackling economic challenges through initiatives like the AfCFTA, African Agenda 2063, and the development of the Pan-African Payment and Settlement System by the African Export-Import Bank. These commendable efforts deserve recognition and support as they hold tremendous potential to drive Africa’s development. It is crucial to effectively implement these projects within their designated timeframes.
Successful execution of these initiatives would not only enhance intra-Africa trade but also contribute to overall economic growth and prosperity in Africa. Given the urgency of the situation, it is imperative for all African countries to unite and collectively overcome the obstacles that have hindered their progress.
Investing in critical areas such as inflation management, unemployment reduction, poverty alleviation, entrepreneurship promotion, political stability, affordable credit, renewable energy, digital connectivity, sustainable infrastructure, and regional integration is vital for Africa’s development.
By adopting a comprehensive approach and drawing inspiration from successful examples, Africa can reduce poverty, improve the quality of life, and stimulate economic growth. Effective leadership, innovation, and a commitment to learning from successful experiences are essential in paving the way towards a prosperous and inclusive future for Africa. The unity of African nations is the key to unlocking the continent’s economic potential.
Conclusion
The economic challenges faced by African countries, as evidenced by the Hanke’s Annual Misery Index of 2022, highlight the urgent need for comprehensive and targeted strategies to address the root causes of these issues. Factors such as inflation, unemployment, political instability, and poor governance have a profound impact on the well-being and development of African nations. To overcome these challenges and unlock Africa’s economic potential, a multi-faceted approach is necessary.
Addressing inflation requires prudent fiscal policies, control over government spending, transparency, and accountability to combat rising prices. High unemployment rates, particularly among the youth, call for investments in education, vocational training, entrepreneurship promotion, and public-private partnerships to create sustainable job opportunities. Political stability is crucial for long-term economic growth, and it can be fostered through peaceful and inclusive societies, resolving conflicts, and strengthening democratic institutions.
To stimulate investment and economic growth, affordable and accessible credit must be facilitated through sound financial regulations, competition among financial institutions, and favorable credit terms for individuals and businesses.
The promotion of decentralized renewable energy systems can reduce Africa’s reliance on imported energy sources, improve energy security, and foster local economic development. Digital connectivity, financial inclusion, and the adoption of blockchain technology can revolutionize access to digital services, e-commerce, and education, promoting inclusivity and prosperity.
Sustainable infrastructure development, prioritizing green projects and smart city concepts, is essential for building a greener and more efficient future in Africa. Regional integration and trade promotion play a vital role in economic progress by fostering collaboration, reducing trade barriers, and enhancing connectivity. In fact, Africa needs to unite into confederated countries in order to maximize its potential and its place in the committee of nations.
By investing in these areas and adopting innovative strategies, Africa can address the root causes of economic challenges, reduce poverty, and promote sustainable economic growth. Effective leadership, learning from successful examples, and a commitment to comprehensive development are crucial in transforming the economic landscape of Africa and improving the livelihoods of its people. With the right policies and actions, Africa can pave the way for a prosperous and inclusive future.
In 2025, nearly 8,500 users from small and medium-sized businesses (SMBs) globally faced cyberattacks where malicious or unwanted software was disguised as popular online productivity tools, Kaspersky reports.
Based on the unique malicious and unwanted files observed, the most common lures included Zoom and Microsoft Office, with newer AI-based services like ChatGPT and DeepSeek being increasingly exploited by attackers. Kaspersky has released threat analysis and mitigation strategies to help SMBs respond.
Kaspersky analysts explored how frequently malicious and unwanted software are disguised as legitimate applications commonly used by SMBs, using a sample of 12 online productivity apps. In total, Kaspersky observed more than 4,000 unique malicious and unwanted files disguised as popular apps in 2025. With the growing popularity of AI services, cybercriminals are increasingly disguising malware as AI tools.
The number of cyberthreats mimicking ChatGPT increased by 115% in the first four months of 2025 compared to the same period last year, reaching 177 unique malicious and unwanted files. Another popular AI tool, DeepSeek, accounted for 83 files. This large language model launched in 2025 immediately appeared on the list of impersonated tools.
“Interestingly, threat actors are rather picky in choosing an AI tool as bait. For example, no malicious files mimicking Perplexity were observed. The likelihood that an attacker will use a tool as a disguise for malware or other types of unwanted software directly depends on the service’s popularity and hype around it. The more publicity and conversation there is around a tool, the more likely a user will come across a fake package on the Internet.
To be on the safe side, SMB employees – as well as regular users – should exercise caution when looking for software on the Internet or coming across too-good-to-be-true subscription deals. Always check the correct spelling of the website and links in suspicious emails. In many cases these links may turn out to be phishing or a link that downloads malicious or potentially unwanted software,” says Vasily Kolesnikov, security expert at Kaspersky.
Another cybercriminal tactic to look for in 2025 is the growing use of collaboration platform brands to trick users into downloading or launching malware. The number of malicious and unwanted software files disguised as Zoom increased by nearly 13% in 2025, reaching 1,652, while such names as “Microsoft Teams” and “Google Drive” saw increases of 100% and 12%, respectively, with 206 and 132 cases.
This pattern likely reflects the normalisation of remote work and geographically distributed teams, which has made these platforms integral to business operations across industries.
Among the analysed sample, the highest number of files mimicked Zoom, accounting for nearly 41% of all unique files detected. Microsoft Office applications remained frequent targets for impersonation: Outlook and PowerPoint each accounted for 16%, Excel for nearly 12%, while Word and Teams made up 9% and 5%, respectively.
The top threats targeting small and medium businesses in 2025 included downloaders, trojans and adware.
Phishing and spam
Apart from malware threats, Kaspersky continues to observe a wide range of phishing and scam schemes targeting SMBs. Attackers aim to steal login credentials for various services — from delivery platforms to banking systems — or manipulate victims into sending them money through deceptive tactics. One example is a phishing attempt targeting Google Accounts.
Attackers promise potential victims to increase sales by advertising their company on X, with the ultimate goal being to steal their credentials.
Beyond phishing, SMBs are flooded with spam emails. Not surprisingly, AI has also made its way into the spam folder — for example, with offers for automating various business processes.
In general, Kaspersky observes phishing and spam offers crafted to reflect the typical needs of small businesses, promising attractive deals on email marketing or loans, offering services such as reputation management, content creation, or lead generation, and more.
Nigerian Financial Intelligence Unit (NFIU) has credited a series of strategic reforms under the national Anti-Money Laundering, Counter-Financing of Terrorism, and Counter-Proliferation Financing (AML/CFT/CPF) framework, behind Nigeria’s significant strides toward exiting the Financial Action Task Force (FATF) greylist, marking a critical milestone in the country’s fight against money laundering, terrorist financing, and financial crimes.
In a statement, Chief Executive Officer of NFIU, Hafsat Bakari, praised the collective efforts of government agencies and stakeholders. “Congratulations and a job well done as Nigeria comes closer to exiting the FATF grey list. The results achieved as part of the strategic reforms must be applauded,” she said.
She said the NFIU, serving as the Secretariat of the Inter-Ministerial Committee on AML/CFT/CPF, spearheaded the development of a comprehensive roadmap to address deficiencies highlighted in Nigeria’s 2021 mutual evaluation report. She explained that the roadmap was recently reviewed and endorsed at the FATF Plenary in Strasbourg, France, where it was acknowledged that Nigeria has completed the implementation of its Action Plan within the agreed deadline—a rare achievement among listed jurisdictions.
Bakari emphasised the pivotal role of political leadership in this success: “The clear focus and leadership of His Excellency, President Bola Ahmed Tinubu GCFR, provided an enabling environment for the reform processes. His dynamic leadership, alongside the support of the Federal Executive Council and the National Assembly, has been a critical success factor.”
She also highlighted the crucial contributions of the Judiciary, which has demonstrated the effectiveness of Nigeria’s legal framework in combating financial crimes. The Attorney-General of the Federation and Minister of Justice, Minister of Finance and Coordinating Minister of the Economy, and the Minister of Interior, who led the Inter-Ministerial Committee, were credited for providing strategic direction.
“The commitment of these key officials, along with support from the National Security Adviser and various ministers, has been instrumental in driving the reforms forward,” Bakari noted.
A broad coalition of agencies formed the backbone of the national effort, including the Central Bank of Nigeria, Economic and Financial Crimes Commission (EFCC), Federal Inland Revenue Service (FIRS), Nigeria Customs Service, Nigeria Police Force, and many others. Their coordinated efforts have strengthened Nigeria’s defenses against illicit financial activities.
Despite the progress, Bakari cautioned that key steps remain before Nigeria can officially exit the greylist. “A critical upcoming milestone is the onsite assessment by the FATF in the next few weeks. This assessment is an opportunity to demonstrate Nigeria’s highest political commitment to sustaining the reform programme and to showcase the impressive results achieved by both public and private sectors in preventing, detecting, and disrupting serious crimes.”
She reaffirmed the NFIU’s dedication to the ongoing fight: “The NFIU remains committed to supporting and working with all stakeholders in strengthening our collective defenses against money laundering, terrorist financing, and other serious crimes.”
The African Continental Free Trade Area (AfCFTA) is strategically positioning Africa to tap into a $712 billion digital trade market by 2035, leveraging key partnerships and trade-enabling infrastructure to deepen continental integration and economic sovereignty.
Wamkele Mene, Secretary General of the AfCFTA Secretariat, made this known on Wednesday at the 2025 Afreximbank Annual Meetings (AAM2025) in Abuja.
According to him, the Protocol on Digital Trade is central to AfCFTA’s strategy for unlocking the potential of Africa’s growing digital economy.
“We intend to harness this significant market, which is estimated to be over $712 billion by the year 2035, presenting opportunities for young entrepreneurs, investment in data centres, the commercialisation and movement of data, and the development of digital public infrastructure,” Mene said.
He emphasised the critical role of Afreximbank in providing the financial architecture required to support the AfCFTA’s implementation, especially in reducing and eliminating tariff and non-tariff barriers.
“Without the support of Afreximbank, the AfCFTA will not succeed. It requires trade finance tools, support for industrial development, green trade, and green industrialisation,” he added.
Among the tools introduced in collaboration with Afreximbank is the Pan-African Payment and Settlement System (PAPSS), which enables intra-African payments in local currencies, reducing dependence on the US dollar and lowering transaction costs. Mene stressed that trading in foreign currencies like US dollar between African countries is no longer sustainable.
“We must use our own currencies. We must ensure the economic sovereignty of our continent and guard ourselves against ever-shifting global geopolitical tensions that affect payment systems,” he said.
He also disclosed that $10 billion has been mobilised under the AfCFTA Adjustment Fund to support countries implementing the agreement, with an initial ZIP package of $1 billion. Furthermore, a $1 billion AfCFTA Automotive Fund has been established to support component manufacturers and vehicle assembly on the continent. The sector, if well-supported, could generate $46 billion by 2035.
Additional initiatives include the AfCFTA E-Tariff platform, the Rules of Origin Manual, and the soon-to-be-launched Transit Guarantee System, which are all geared towards simplifying trade procedures and boosting intra-African trade.
“We have moved beyond political aspirations to establishing a functional and legally binding multilateral African trading system. This includes protocols on investment, competition policy, and digital trade,” Mene said.
Despite these milestones, he warned that numerous challenges persist. These include inefficient customs systems, high trade costs that limit SME market entry, political instability, and persistent food insecurity which blocks smallholder farmers from accessing markets. He called for continued collaboration between political leaders and development finance institutions to address these obstacles.
“We should be proud of what we have achieved, but also mindful of the difficult journey ahead. Conflict and instability, particularly in rural regions, continue to prevent millions of farmers from accessing markets. We must tackle these issues with urgency if the full potential of AfCFTA is to be realised,” Mene said.
During a question and answer after the launch of African trade and economic outlook report, Yemi Kale, Group chief economist and managing director of Research and Trade Intelligence at the African Export Import Bank, said between May 2024 and 2025 transaction volume through Pan-African Payment and Settlement System (PAPSS) increased by over 1,000 percent, reflecting increased adoption of the payment system.
CCPT Dismisses Class Action Suit against MultiChoice over Tariff Hikes
Flutterwave Named in 2025 TIME100 Most Influential Companies List
GSK to Slash Cost of Malaria Jab to Less than $5
Households Earning ₦250,000 Or Less Monthly Won’t Pay Tax – Oyedele
Rack Centre Signs Collocation Deal with TelCables Nigeria
General News2 days agoOpenAI Unveils New AI Agent for Software Developers
Telecom2 days ago15 African Startups Using AI Selected for Google Accelerator Cohort 9
Telecom2 days agoMTN Nigeria Receives UN Women Award for Empowering Women Nationwide
Telecom2 days agoUS Bans Use of WhatsApp on Official Devices over Security Concerns
E-Financial1 day agoFidelity Bank Clears the Air: MD Not Linked to Woobs Case
Telecom2 days agoMTN Nigeria Launches “Mega Billion Promo” to Reward Customer Loyalty and Drive Financial Inclusion
Telecom2 days agoMTN Nigeria Donates Medical, Digital Equipment to Lagos Primary Healthcare Centre
General News1 day agoSEC Advocates for Advanced Financial Inclusion by 2030