Zimbabwe Among Nations with Widest Wealth Gap as Income Inequality Persists

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HARARE – Zimbabwe ranks among the top 30 countries globally with the widest income disparity between its richest and poorest citizens, according to a recent report by InsiderMonkey. The report highlights the stark wealth inequality in the Southern African country, placing it at 11th position, based on data from the World Inequality Database for 2022.

InsiderMonkey’s analysis used the income share of the wealthiest 10% compared to the bottom 50% to gauge the extent of economic inequality in each nation. The findings reveal that 17 of the top 30 countries with the widest income gaps are from Africa, with nine of them in the Southern African Development Community (SADC). Of particular concern, six SADC countries, including Zimbabwe, rank within the top 10 for income inequality.

In Zimbabwe, the wealthiest 10% of the population controls 59% of the country’s income, while the poorest half hold only 9.2%. Neighbouring SADC nations fare similarly: Botswana ranks 10th with a 59.3% income share for the top 10% and 8.1% for the bottom 50%, while Eswatini’s figures stand at 59.9% and 7.9%, respectively.

South Africa, which has one of the world’s most unequal societies, shows the top 10% controlling 65.4% of income, with the bottom 50% at 13.3%. Zambia, Mozambique, and Namibia follow, all showing significantly lopsided income shares favouring the top 10%.

In contrast, Seychelles, though ranking 30th, still demonstrates a considerable gap with the wealthiest 10% holding 52.1% of income compared to 12.1% for the poorest half. Angola, another notable African country on the list, sees its top 10% holding 58% of wealth, leaving just 9% for the bottom 50%.

The report warns that excessive inequality can harm social cohesion, increase political polarization, and stifle economic growth. Conversely, too much equality can stymie investment and growth, pointing to the need for a balanced economic structure.

“This data highlights a need for equitable growth policies to prevent the extremes of inequality,” InsiderMonkey notes, emphasizing that economic stability often requires balanced wealth distribution.

Zimbabwe’s government has set an ambitious target to achieve upper-middle-income status by 2030, under President Emmerson Mnangagwa’s development slogan, “leaving no one and no place behind.” However, the data suggests a widening divide, as half the population remains significantly disadvantaged.

As Zimbabwe strives to meet its 2030 vision, the widening wealth gap raises questions about whether the country’s economic policies are effectively reaching the most vulnerable citizens. The stark inequality reported by InsiderMonkey signals that without targeted interventions, Zimbabwe’s economic growth may continue to benefit the wealthy few, leaving the majority struggling to make ends meet.