Inequality 'greater than feared'

In the past two decades Africa's rich have benefited immensely from unprecedented economic growth, while more citizens live in poverty than ever before, a new report says.

Social justice organisation Oxfam's report, entitled Starting with people,details the crisis facing Africa's poor and issues a challenge to African leaders "to champion new economic models".

"New data shows that Africa's inequality crisis is greater than feared," Oxfam said in a statement as delegates met in Durban for World Economic Forum Africa, which runs until tomorrow.

"African leaders must build a new more 'human economy' to tackle inequality and poverty," Oxfam said, adding that new data from the Brookings Institute reveals levels of inequality in a number of African countries far higher than previously thought.

A growing population meant there were 50 million more people living in extreme poverty in sub-Saharan Africa in 2012 than in 1990.

"Seven of the 20 most unequal countries in the world are African. Swaziland is the world's most unequal, now closely followed by Nigeria," the statement read.

"In South Africa, three billionaires own the same wealth as the poorest half of the population - about 28 million people."

Oxfam said "decades of record GDP growth benefited a wealthy elite but left millions of other Africans behind.

"As a consequence, poverty has declined more slowly in Africa than in any other region."

Forecasts predict 250 to 350million more people could be in dire poverty in the next 15 years.

"Inequality in Africa is fuelling poverty, fracturing societies and stifling the potential of millions of people," said Winnie Byanyima, executive director of Oxfam and co-chairman of WEF Africa 2017.

"It will become a major drag on economic growth. Africa should not imitate failing policies of Europe and the US and find a new economic model that works for all Africans - not just the fortunate few," she said.