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.
Nigerian Postal Service (NIPOST) has signed an international mail partnership with KLM Royal Dutch Airlines for improved delivery access to over 200 countries without middlemen.
Tolani Odeyemi, postmaster-general and chief executive officer of NIPOST, described the deal as a “major milestone” for the country’s logistics and postal sector.
In a statement on X on Monday, Odeyemi explained that the new agreement marks NIPOST’s first direct international airline partnership for several years.
“For a long time, NIPOST operated without any direct partnerships with international airlines, relying heavily on multiple third-party handlers,” the Postmaster-General stated. This often resulted in delays, higher costs, and uncertainty around the delivery of packages.”
She explained that under the new arrangement, KLM will directly handle all outbound international mail from Nigeria, eliminating the need for intermediaries.
“This translates to faster and more reliable delivery, reduced risk of loss or damage, lower handling charges, and access to over 200 countries through KLM’s global network,” the Postmaster-General stressed.
According to Odeyemi, NIPOST’s breakthrough came after it began settling long-standing debts owed to international carriers, a step she said was key to “rebuilding global trust” in Nigeria’s postal system.
She revealed that talks were also ongoing with Ethiopian Airlines to bolster regional and continental logistics, particularly on African and Eastern routes.
“Our goal is clear and unwavering: to connect Nigeria regionally and globally, efficiently, securely, and affordably,” Odeyemi asserted.
The NIPOST CEO described the development as a significant win for Nigerian businesses and small and medium-scale enterprises that rely on international shipping, stating, “You now benefit from quicker, more affordable international shipping, greater peace of mind with improved reliability, and new potential to reach and grow in global markets.”
Odeyemi commended the teams behind the scenes and pledged continued improvements in service delivery, adding that the deal signals a turning point for the agency.
The evolution of AI is not only affecting various industries, but it has also transformed cybercriminals’ tactics. One alarming trend is the use of AI to enhance phishing scams, refining them, targeting specific individuals, and making these attacks almost impossible to recognise.
Kaspersky reviews how AI is changing phishing techniques and why even the most cyber-aware employees may fall for these scams.
According to a recent Kaspersky study, the number of cyberattacks experienced by organisations in the last 12-months is reported to have increased by nearly half (48%) in the Middle East, Turkiye and Africa (META) region.
The most ubiquitous threat came from phishing attacks, with 51% of those questioned in the META region reporting this type of incident. With AI becoming a more prevalent enabler for cybercriminals, over half of the respondents in META (53%) anticipate significant growth in the number of phishing attacks. In this text, Kaspersky examine how AI is used in phishing and why experience alone is sometimes not enough to avoid becoming a victim.
Personalisation through AI
Previously, phishing attacks relied on a generic mass message sent to thousands, hoping some of the recipients would fall for the bait. AI has changed this into scripting highly personalised phishing emails in large numbers. Using publicly available information like that on social media, job boards, and companies’ websites, these AI-powered tools can generate emails tailored to an individual’s role, interests, and communication style.
For example, a CFO might receive a fraudulent email that mirrors the tone and formatting of their CEO’s messages, including accurate references to recent company events. This level of customisation makes it exceptionally challenging for employees to distinguish between legitimate and malicious communications.
Deepfake technology
AI has also introduced deepfakes into the phishing arsenal. These are increasingly being leveraged by cybercriminals to create fake but highly accurate audio and video messages, crafted to reflect the voice and appearance of the executives they seek to impersonate.
For example, in one reported case, attackers used a deepfake to impersonate multiple members of staff during a video conference, convincing the employee to transfer approximately $25.6 million. As deepfake technology continues to advance, it is expected that such attacks will become more frequent and harder to detect.
Bypassing traditional defenses
Cybercriminals can manipulate the script of traditional e-mail filtering systems with the use of AI. By analysing and mimicking legitimate email patterns, AI-generated phishing emails can bypass security software detection. Machine learning algorithms can test and refine phishing campaigns in real time, enhancing their success rates and making them increasingly sophisticated.
Why experience is not enough
Even experienced employees are falling victim to these advanced phishing attacks. The level of realism and personalisation that AI can achieve may override the skepticism that keeps experienced professionals cautious. Moreover, AI-generated attacks often exploit human psychology, such as urgency, fear, or authority, pressuring employees into acting without double-checking the authenticity of the request.
Combatting AI-hyped phishing
To defend against AI-driven phishing attacks, organisations must adopt a proactive and multi-layered approach that emphasises comprehensive cybersecurity. Regular, up-to-date AI-focused cybersecurity awareness training is critical for employees, helping them identify the subtle signs of phishing and other malicious tactics.
Kaspersky Automated Security Awareness Platform can help with such training. Alongside this, businesses should implement robust security tools, such as Kaspersky Next and Kaspersky Security for Mail Server, capable of detecting anomalies in emails, such as unusual writing patterns or suspicious metadata.
A zero-trust security model also plays a vital role in minimising the potential damage of a successful attack. By restricting access to sensitive data and systems, this approach ensures that even if attackers breach one layer of security, they cannot compromise the entire network. Together, these measures create a comprehensive defense strategy, combining advanced technology with vigilant human oversight.
At least 10 out of every 100 Nigerians have fallen victim to data breaches since 2004, according to a new report by global cybersecurity firm Surfshark, raising serious concerns about the country’s long-standing vulnerability to cyber threats.
Surfshark’s research is based on data gathered from 29,000 publicly available databases.
Each unique breached email address is treated as a separate user account, and breaches often include additional personal data such as passwords, phone numbers, IP addresses, and postal codes.
The data was anonymised before analysis, and countries with populations under one million were excluded from the study.
Findings of the report revealed that a staggering 23.2 million Nigerian user accounts have been compromised in the past two decades, an alarming figure in a country with an estimated population of over 230 million.
This includes 7.3 million unique email addresses and 13 million passwords leaked into the public domain.
“Cyberattacks remain a persistent and growing threat globally, and Nigeria is no exception,” Surfshark stated in its analysis.
Despite a significant 85 per cent drop in new data breaches in the first quarter of 2025, falling from the previous quarter’s numbers—Nigeria still recorded over 119,000 breached accounts during the period. This places the country 34th worldwide in total breach volume.
Even with the recent decline, the scale and depth of past breaches remain troubling.
According to the report, 56 percent of Nigerian users affected by breaches are at heightened risk of identity theft, extortion, and unauthorised access to their online accounts.
“In Q1 2025 alone, an estimated one Nigerian account was breached every minute,” Surfshark noted.
The global picture also shows a dramatic shift: the number of leaked accounts dropped 93 percent year-on-year—from nearly 974 million in Q1 2024 to just 68.3 million in Q1 2025.
Countries with the highest number of breaches include the United States (16.9 million), Russia (4.4 million), and India (4.2 million).
However, when adjusted for population, smaller nations like South Sudan, Spain, and Slovenia reported the highest breach density, with South Sudan recording 61 breached accounts per 1,000 residents.
Luís Costa, Surfshark’s research lead, warned that the downturn in breach numbers should not lead to a false sense of security.
“Cyberthreats are constantly evolving, and attackers are adapting their tactics. Strong security practices, frequent password updates, and enabling two-factor authentication remain essential,” Costa stated.
The report underscores the urgent need for improved cybersecurity infrastructure and public awareness in Nigeria, as millions remain exposed to potential exploitation due to past breaches.
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