The Situation
LEAD Africa recognizes the challenges confronted by the African development and governance environment. The
recently published commission report for Africa states: “While there have been improvements in many African
countries, weaknesses in government and capacity is the central cause of Africa’s difficult experiences over the last
decades.”
With a total (2018) population of 1,275,920,972 Billion, 16.7% of the world’s 7,631,091,040 billion people are Africans.
Yet, the continent accounts for only 5% of the entire capital inflow to the developing countries.
According to the World Bank, close to 40% of the people in Africa live on less than $1 per day.
According to world investment report 2018, by United Nations Conference on Trade and Development (UNCTAD),
Global flows of foreign direct investment fell by 23 per cent in 2017. Cross-border investment in developed and
transition economies dropped sharply, while growth was near zero in developing economies. With only a very
modest recovery predicted for 2018, this negative trend is a long-term concern for policymakers worldwide,
especially for developing countries, where international investment is indispensable for sustainable industrial
development.
According to the World Bank, more than half pf the extreme poor live in Sub-Saharan Africa. In fact, the number of
poor in the region increased by 9 million, with 413 million people living on less than US$1.90 a day in 2015, more
than all the other regions combined. If the trend continues, by 2030, nearly 9 out of 10 poor will be in Sub-Saharan
Africa.
So far, therefore, African leaders have largely failed to create modern economic institutions
relevant to the African conditions, adaptable to changing global patterns of production,
technology and markets, which can facilitate and promote sustainable human development and
growth. This is our challenge!
