Africa’s poverty crisis is being driven by weak institutions, low productivity, and a failure to convert potential into economic progress, according to Paul Alaje, a senior economist. Speaking at the Paul Alaje Colloquium in Abuja, he emphasized that poverty thrives in environments with weak or captured institutions. The continent’s challenges, he noted, are structural rather than resource-based, with low productivity and high underemployment entrenched in many economies.

Alaje identified insecurity, poor governance, limited technological adoption, and difficulties in moving goods and people across borders as key factors compounding Africa’s economic weaknesses. He argued that poverty is a systematic condition, not just a shortage of income, and that breaking this system is essential for development. The economist pointed to countries like South Korea, Rwanda, Singapore, Botswana, and post-war Germany as examples of how strong institutions, industrial strategy, and investment in skills can lift millions out of poverty.

To reverse Africa’s decline, Alaje proposed four pillars: economic transformation, governance, security, and technology. He urged Nigeria to prioritize production over imports, expand regional value chains, stabilize macroeconomic policy, and invest in broadband, digital identity, and technical skills. Stronger cross-border cooperation, easier travel within Africa, and security partnerships are also essential for growth, he said.

Alaje stressed that industrialization will not succeed without credible public institutions, digital public services, reliable power, improved transport links, and a stable currency. He called for anti-corruption reforms, community-based security, modern surveillance tools, and more support for small firms and vocational training. African governments, he said, must remove barriers to trade, simplify visa rules, and align regulatory systems to encourage continental integration.

The economist’s comments come as many African countries face widening inequality, youth unemployment, and slow productivity growth, despite abundant natural resources and a growing population. Recent World Bank data show that about 61% of Nigerians live below the international poverty line, while roughly 464 million Africans live in extreme poverty, with the continent’s overall poverty rate estimated at 43.9%. The World Bank notes that expected economic growth will likely only reduce poverty modestly, due to limited job creation and structural challenges. Alaje’s remarks highlight the need for African countries to strengthen governance, build human capital, and expand access to technology to achieve prosperity.