Corruption: What You Need to Know

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Introduction

In a country where people care more about their own success than making the country better, corruption tends to grow. When individual achievements matter more than what’s suitable for everyone, corruption is at work – like in the personal, group, or even spiritual settings. Surprisingly, even in places of worship, if personal growth is more important than everyone growing together, corruption is already there. It’s okay to want personal success, but if you’re only focused on beating others, corruption might be creeping in. This could be because of the people around you or because you’ve been influenced by the environment. I always tell people you cannot be praying to buy a car and build a house when the environment is in chaos, you will be the target for the poor or those still struggling.

Corruption remains a pervasive issue that affects nations, individuals, and organizations on a global scale. In recent times, discussions surrounding the profound implications of corruption have gained prominence, shedding light on its far-reaching consequences. This article delves into the multifaceted impact of corruption, with a focus on the economic, social, and organizational dimensions. Drawing from a United Nations (UN) report on corruption’s staggering costs and its link to conflict, this article examines its implications for nations, individuals, and organizations, emphasizing its detrimental effects on African countries and their people. Furthermore, we explore the definition of corruption, elucidating its various forms and manifestations.

Image Source: Transparency International

Understanding the Enormous Costs of Corruption

A significant starting point for our exploration lies within the comprehensive UN report, which states that corruption has resulted in a colossal cost to the global economy, amounting to over $2.6 trillion or 5% of the global GDP (UN, 2018). This staggering figure raises critical questions about the destination of these immense financial resources. Unquestionably, a substantial portion of these funds can be attributed to African and other developing nations, where corruption has taken root and thrived. Research has consistently demonstrated a direct correlation between a country’s corruption levels and its developmental status, as well as the prevalence of poverty within its borders. The impact of corruption can be seen all over Africa, where funds meant for community or state development are directed to the personal pockets of some select few, while those projects suffer from stagnation or lack of funds.

Corruption and Conflict: A Complex Relationship

The UN report also underscores the intricate link between corruption and conflict. This connection between two seemingly disparate issues points to the destabilizing effects of corruption, which can exacerbate existing tensions and fuel conflicts. The representative of the United States emphasized this connection, highlighting how corruption’s unchecked growth permits transnational crime and drug trafficking to flourish. This, in turn, triggers mass migration and poses significant challenges to regions and the global community. Notably, historical instances like the “Arab Spring” serve as poignant reminders of the role corruption can play in sparking widespread protests and uprisings.

Corruption’s Stranglehold on African Nations

A closer examination of corruption’s impact on Africa unveils a distressing reality. Corruption has been a key factor in hampering the growth and development of many African countries. This often occurs with the complicity of external actors seeking to protect their interests. While corruption exists globally, the Western world’s foundation built on principles of trust, justice, and national interest has mitigated its impact to a considerable extent. African nations, plagued by deeply entrenched corruption, have struggled to realize their full potential, as misappropriated funds and resources hinder progress and exacerbate social inequalities. A portion of the corruption in Africa can be linked to Western influence aiming to maintain control over their investments and interests.

Defining Corruption: Unravelling Its Many Facets

To comprehensively address corruption, a clear understanding of its manifestations is essential. Corruption takes the form of offering, giving, or soliciting benefits to influence the actions of individuals in positions of authority. These actions can involve direct or indirect attempts to manipulate decisions, often resulting in fraudulent practices or the evasion of legal requirements. Benefits exchanged in corrupt transactions can encompass various forms, including monetary bribes, facilitation payments, kickbacks, inappropriate gifts, sponsorships, and other direct or indirect considerations.

The 3-Main Impact of Corruption especially on Africa

  • Economic Impact
  • Social and Human Impact
  • Organization Impact

Economic Impact: Corruption’s far-reaching implications extend to economic realms, where its detrimental effects are starkly evident. According to estimates from the World Economic Forum, global corruption amounts to a staggering $2.6 trillion or 5% of the global GDP. This not only undermines economic efficiency but also contributes to reduced equality and unfavourable business environments.

For example, Gupta et al. (1998), in their paper “Does Corruption Affect Income Inequality and Poverty”? Li et al (2000), Hendriks et al. (1998), and Johnston, M. (1989) Corruption, Inequality, and Change argue that corruption increases income inequality through several channels. First, to the extent that corruption decreases economic growth, which is more likely to increase the income share of the poor than the rich, it increases income inequality and poverty. Second, corruption leads to a bias of the tax system in favor of the rich and powerful, thus making the effective tax system regressive (Hendriks et al. 1998), which implies that the burden of the tax system falls disproportionately on the poor.

A potential link has been suggested between corruption levels, poverty rates, and a nation’s gross domestic product (GDP), with Africa often cited as an example. While some argue that higher corruption can impede economic growth, leading to an increase in poverty and a decrease in GDP, the relationship is multifaceted and influenced by a range of factors like governance, education, healthcare, infrastructure, international trade, and other elements that collectively shape a country’s economic and social landscape, however, I believe corruption plays a major role. Corruption influences policies, processes, and critical decision that affects human life when people are induced or moved by personal gain.

In African countries, the notional tax system is not regressive. However, corruption allows the rich and powerful to escape their tax obligations, hence the tax burden falls almost exclusively on the poor. Corruption leads to the concentration of assets among a few wealthy elites. Because earning power depends, to some extent, on resource endowment (including inherited wealth), the rich are able to use their wealth to consolidate their economic and political power further.

Social and Human Impact: Corruption’s corrosive influence seeps into the fabric of societies, inflicting social and human costs. It fosters a culture of mistrust, erodes social cohesion, and perpetuates inequality. Vulnerable populations are often hit the hardest, as resources meant for their welfare are siphoned away through corrupt practices. Furthermore, corruption can impede the delivery of essential services, exacerbating poverty and hindering human development.

As individuals shift their attention from the advancement of their nation to their own personal growth, the foundation of their value system starts to erode. This shift in focus results in a transformation of their objectives, with personal gain overshadowing their regard for human well-being. This shift is especially evident when observing instances where political leaders in African nations allocate substantial resources to benefit themselves, rather than investing in projects that foster national development. The prioritization of personal security has even surpassed the importance of national security, as demonstrated by their inclination to assign themselves generous health allowances. This enables them to seek medical treatment abroad, instead of contributing to the enhancement of local healthcare facilities that could benefit the entire population. The pervasive presence of corruption further exacerbates societal inequalities by creating distinct socioeconomic classes, ultimately deepening the divide between the affluent and the underprivileged.

Organizational Impact: Organizations, both public and private, are not immune to corruption’s grasp. Corrupt practices within institutions compromise their integrity, tarnish their reputation, and impede growth. Rampant corruption can lead to a lack of investor confidence, decreased foreign direct investment, and hindered economic progress.

When corruption permeates a nation’s institutions, its effects on organizations within the country are profound. Transparency vanishes, giving way to a lack of fairness and equity. The principles of a level playing field erode, and the market becomes driven by those who can offer the most money. Enterprises find themselves allocating additional resources to accomplish tasks, as their profits are diminished by the need to pay bribes. The quality of work and overall productivity decline, as nearly everything can be acquired through monetary means, undermining healthy competition and fostering monopolies.

Moreover, funds that the government collects in the form of taxes for growth and development are diverted toward granting personal favours to individuals

Conclusion

The impact of corruption on nations, individuals, and organizations is profound and far-reaching. The UN report’s revelations regarding the exorbitant financial costs of corruption serve as a wake-up call for concerted global efforts to combat this menace. The link between corruption and conflict underscores the urgency of addressing corruption to ensure global stability. In the African context, corruption’s devastating effects have hindered progress and perpetuated inequalities, highlighting the need for tailored solutions. By defining corruption’s various forms and understanding its diverse impacts, societies, and institutions can work together to forge a future that is free from the corrosive effects of corruption. As we navigate the complexities of corruption’s influence, a united front against this scourge offers hope for a more just, equitable, and prosperous world.

Africa Tech

Africa and Technology Development

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Advancements in technology have had a significant impact on the global economy. The African economy has been included, and technological advances are gradually transforming various sectors of the economy. This white paper will examine how technological advancements impact the African economy and the potential benefits and challenges of the technological revolution.

Africa is adapting to changes fast, and its population demographic (higher population of youths) has made it even easier for adoption.

How-technology-could-promote-growth-in-6-african-countries

The current state of technology in Africa

In recent years, there has been a significant increase in technology adoption in Africa. According to the World Bank, the number of internet users in Africa increased from 2.1% in 2005 to 28.2% in 2020. Mobile phone penetration has also increased, with over 500 million mobile phone subscribers in Africa. Additionally, the continent is seeing an increase in investments in technology, with various tech startups and accelerators emerging across the continent. Today, Africa has produced more unicorn companies from technology than any other in shorter times.

Increased access to information and communication

Advancements in technology have provided Africans with greater access to information and communication. With the rise of mobile phones and the internet, individuals and businesses can communicate and access data anywhere. This has improved productivity and efficiency in various sectors, such as healthcare, agriculture, and education.

Improved access to financial services

The rise of fintech startups in Africa has increased access to financial services, particularly for the unbanked and underbanked populations. Mobile money platforms, such as M-Pesa in Kenya, Paga, Flutterwave, MonniePoint, and ConnectPoint in Nigeria, have revolutionized how people send and receive money, pay bills, and access credit. This has provided opportunities for entrepreneurs and small businesses to access financial services, which has led to increased economic growth and reduced poverty levels.

Increased job opportunities

The rise of technology in Africa has created new job opportunities, particularly in the tech industry. The growth of tech startups and accelerators has led to the creation of jobs in various fields, such as software development, data analysis, and digital marketing. This has also led to increased innovation and competition, which has led to improved products and services across various sectors. In Nigeria alone, the Central Bank of Nigeria has licensed over 150 financial technology companies offering numerous services, creating at least 5,000 direct job opportunities supporting more than 500,000 Micro, Small, and Medium businesses nationwide. Technology has helped the African economy more than we thought, and there is still space for unexplored areas in manufacturing, Agriculture, healthcare, housing, etc.

Challenges of technology in Africa

Infrastructure

One of the significant challenges facing technology adoption in Africa is the need for adequate infrastructure. Governments and private sector stakeholders need to invest in infrastructure to support the growth of technology in Africa. Many parts of Africa still need access to reliable electricity and internet connectivity, which limits the potential of technology adoption in various sectors.

Skills gap

There is a significant skills gap in the African tech industry, particularly in software development and data analysis. This limits the potential of the tech industry to create more jobs and contribute to the economy’s growth. Governments and private sector stakeholders need to invest in education and training programs to bridge the skills gap in the tech industry.

Cybersecurity

The rise of technology has also increased the risk of cybercrime and cybersecurity threats in Africa. Many African countries lack adequate cybersecurity policies and infrastructure, which puts individuals and businesses at risk of cyber attacks. Governments and private sector stakeholders need to invest in cybersecurity infrastructure and policies to mitigate the risks of cyber attacks.

Education & Research

The current infrastructure of our educational sector needs to provide adequate support for research that could drive innovation. Whether it’s the education policies, infrastructure, or lack of appropriate research fellows, the impact and potential of such research still need to be explored. Despite the presence of technology and research investment by several companies in universities, they tend to offer grants to a select few who need proper oversight on utilizing such funding.

The government must intervene and provide support to unlock research and innovation potential in manufacturing, aerospace, drone technology, 3-d, and artificial intelligence. The government’s involvement in this sector can significantly shape the educational infrastructure and policies required to facilitate impactful research that can drive innovation and have real-world applications.

Africa needs to build her own using her talent and her resources.

Conclusion

Technology advancements can transform the African economy and create new opportunities for growth and development. However, to fully realize the potential of technology in Africa, there is a need for governments and private sector stakeholders to invest in infrastructure, education and training programs, and cybersecurity policies and infrastructure. By addressing these challenges, Africa can leverage technology to drive economic growth and improve the lives of its citizens.

You can also read my recent article here Rising Africa and her Opportunities

Rising Africa and her Opportunities

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Africa is home to diverse cultures, people, and landscapes, it’s a beautiful continent with over 54 countries today and islands. As of 2021, the estimated population of Africa is around 1.34 billion people. Africa is the world’s second most populous continent after Asia. The population of Africa is expected to continue growing rapidly, with estimates suggesting that it will reach 2.5 billion people by 2050. This means Africa it is for those with vision because there are lots of problems to be solved. The good news is that Africa is adopting technology faster than most other places around the world.

Here, I want to focus on payments in Africa and the emerging companies in this sector. Africa is a continent that has been experiencing rapid economic growth in recent years, with a young and dynamic population that is driving the demand for digital solutions. The payments landscape in Africa is evolving rapidly, with emerging companies leading the charge toward digital payments and financial inclusion.

Why Africa is the Investment Destination

Investing in Africa is a smart move for several reasons. First, Africa has a rapidly growing middle class, which is driving demand for goods and services. This creates a ripe environment for businesses to thrive and succeed. Second, Africa has a young and highly educated population that is eager to learn, innovate and contribute to the economy. This creates a fertile ground for innovation and entrepreneurship. Third, Africa has a vast and diverse natural resource base, which can be leveraged for economic growth and development.

How People can Invest in Africa

Investing in Africa has never been easier. There are several ways you can invest in Africa, including through stocks, bonds, exchange-traded funds (ETFs), mutual funds, and private equity. Investing in Africa through ETFs or mutual funds is an easy way to get exposure to the continent’s rapidly growing economies without having to manage individual stocks. But the focus of this article is investing in startups that building products that are solving real African problems from payment to commerce to health and agriculture and lots more.

Market Size and Potential of Return on Investments

The market size for payments in Africa is huge and growing rapidly. According to a report by McKinsey, Africa’s payment market is expected to reach $500 billion by 2025, up from $200 billion in 2019. This growth is being driven by the increased adoption of mobile and digital payments, as well as a push for financial inclusion. you can further read this by McKinsey; fintech-in-africa-the-end-of-the-beginning

Investing in Africa has the potential for high returns, but it is not without risks. As with any investment, it is important to do your due diligence and research the companies and markets you are investing in. However, with Africa’s vast potential, investing in payments in Africa can be a smart move for those looking to diversify their portfolio and capture the growth potential of this exciting and dynamic continent.

In conclusion, Africa is a continent that is full of opportunities and potential, especially when it comes to payments and digital solutions. As the payments landscape in Africa continues to evolve, emerging companies are leading the charge toward financial inclusion and digital transformation. Investing in Africa is a smart move for those looking to diversify their portfolio and capture the growth potential of this exciting continent.

Startups with Unicorn Status

Here are some of the African unicorn companies, which are privately held startups with a valuation of at least $1 billion:

  1. Jumia – an e-commerce platform operating in 14 African countries.
  2. Interswitch – a digital payments company providing services in Nigeria and other countries.
  3. Fawry – a digital payments company based in Egypt.
  4. OPay – a mobile payments and ride-hailing platform operating in Nigeria and other countries.
  5. Flutterwave – a digital payments platform operating in Nigeria and other countries.
  6. Chipper Cash – a cross-border payments platform operating in several African countries and the United States.
  7. Twiga Foods – a digital marketplace that connects farmers and food vendors in Kenya.
  8. Yoco – a digital payments company providing services to small businesses in South Africa.
  9. Andela – a talent development and outsourcing company operating in Nigeria, Kenya, Uganda, and Rwanda.
  10. Jumo – a digital finance platform operating in several African countries.

These companies are a testament to the entrepreneurial spirit and potential for growth in Africa’s tech and startup ecosystem.

you want to talk about investing? you can send me an email.

Steps to Successful Project, and Changing Technology Landscape

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Introduction

Project management is the process of planning, executing, monitoring, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria at a specified time. The primary challenge of project management is to achieve all project goals within the given constraints.

In 2023, project management will likely continue to evolve and adapt to changing technology and business environments. Here are a few trends and developments that are likely to impact project management in the coming years:

  1. Increased use of remote teams: With the ongoing COVID-19 pandemic, more companies will continue to rely on remote teams, requiring project managers to have experience and skills in managing virtual teams.
  2. Greater use of Artificial Intelligence (AI) and automation: Project managers will increasingly use AI to automate repetitive tasks, such as scheduling and resource allocation, which will help them to work more efficiently and effectively.
  3. Emphasis on agile methodologies: Agile project management methodologies, such as Scrum, will continue to gain popularity in 2023, as they allow organizations to adapt to changing requirements and market conditions quickly.
  4. Focus on sustainability and social responsibility: Companies are becoming more aware of the need to be socially responsible and sustainable in their operations, which will require project managers to consider these aspects when planning and executing projects.
  5. Cybersecurity: Project managers must be aware of the growing threat of cyber-attacks and take steps to protect their organizations’ data and systems.
  6. Greater use of data analytics: Project managers will leverage data analytics to make data-driven decisions, monitor project performance, and predict potential risks.

Overall, project management in 2023 will continue to focus on delivering projects on time, within budget and scope while considering the impact of the project on the people, processes, and technology.

Steps to prepare for project management and ensure the success of a project.

Step 1: Define the Project

The first step in preparing for project management is to define the project clearly. This includes identifying the project goals and objectives, as well as the project scope, deliverables, and constraints. These steps will help ensure that all stakeholders clearly understand what the project is and what is expected of them.

Step 2: Develop a Project Plan

The next step is to develop a project plan. This plan should include details such as the project schedule, budget, and resource requirements. It should also include a risk management plan to identify and mitigate potential risks. A well-developed project plan will help to ensure that the project stays on track and that all stakeholders are aware of the project’s progress.

Step 3: Assemble a Team

The third step is to assemble a team of qualified individuals to work on the project. The team should include individuals with the necessary skills, experience, and knowledge to meet the project’s objectives. It is also critical to define clear roles and responsibilities for each team member.

Step 4: Monitor and Control Progress

The fourth step is to monitor and control the project’s progress. This includes regularly reviewing the project schedule, budget, and resource usage to ensure that the project is on track. It also involves identifying and addressing any issues or problems that arise. By monitoring and controlling progress, the project manager can ensure that the project stays on track and that any issues are addressed in a timely manner.

Step 5: Close the Project

The final step is to close the project. They include completing all project deliverables, finalizing the project budget, and conducting a project post-mortem to identify what went well and what could be improved upon in future projects.

Conclusion

By following these steps, organizations can effectively prepare for project management and ensure the success of their projects. Defining the project, developing a project plan, assembling a team, monitoring and controlling progress, and closing the project are all critical steps in the project management process. By taking the time to prepare for project management properly, organizations can increase the likelihood of project success and achieve their desired outcomes.

DISCOVERING YOURSELF-3

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In our series of discovering yourself, we have shared several other ways of self-discovery, which include your background, and past and present experiences. In this series, we will be focusing on training and Skills, as tools for self-discovery. You sharpen your skills through training and constant exercise. Remeber these are excepts from my book, you can always buy this book from amazon here.

Your Training

You may have had several trainings based on interest or in the line of the work you do. From the story of the Ultimate Survival series I shared in your past experience. This training might be of immense value to some other people. I, for example, have attended several trainings both local and international, some were even online and free. These trainings have pointed out some skills I could offer without stress. So, go through your training and see the ones you have been applying over time. I have trained several people on how to write proposals, finance, project management, and how make presentations. All this I was able to do because of some of the trainings I have attended. The story of Serena Williams below buttresses the importance of training.

Serena Williams, born September 26, 1981, found her passion at the age of three (3) after starting intensive training supported by her father who was also her coach then. She continued training and playing until 1999, that’s 15 years later when she won her major title, becoming one of the youngest players to win a major title. Since then she has gone ahead to win over 37 titles including singles and doubles, this is one of the biggest feats achieved by any single woman tennis player, she was ranked No.1 in Women Tennis Association (WTA) in 2018.

Serena found her passion through training and since then has been very consistent. She is a very diligent trainer. Your training can be a pointer to who you are and your capabilities. Take Cristiano Ronaldo as another example; he trained hard daily to become one of the world’s greatest footballers, winning the FIFA Ballon d’Or four times. I could give examples of so many other athletes and professionals who trained hard to reach the peak of their careers and become well known all over the world.

As a trainer and coach, I have come to realise that my trainings make up some of the products I develop for my company today. Your training means you have been equipped with information and potential tools to succeed in that endeavor or field. Training is an information dishing period and it helps you become better in taking critical decisions. In Malcolm Gladwell’s book, “the Outliers” he mentioned the ten-thousand-hour rule. He said from research those who have worked on something or trained in a particular field become professionals after they have worked in that field for ten- thousand- hours. Training makes you an expert in that field, don’t take it for granted. Train like your life depends on it, through training you can develop that innate potential and fire them to live.

Your Skills

Check out those skills you apply without stress, those things you do seemingly effortlessly and better than most people. They are strong pointers to who you are, don’t take them lightly, instead, take them seriously. Take football, for example, Lionel Messi was discovered to be very skillful at an early age. And today he is one of the best things to have happened to football in the 21st century. Below is his story as told here: Lionel Messi was born on 24 June 1987, in Rosario, Argentina to a working-class family. His father was a factory steel worker, and his mother a cleaner.

He began playing from an early age, and his talent was soon apparent. However, at the age of 11, Messi was diagnosed with growth 20 hormone deficiency (GHD). This was a condition that stunted growth and required expensive medical treatment, including the use of the drug Human growth hormone. His local club, River Plate was interested in signing Messi but didn’t want to pay for his medical treatment. However, Messi was given a trial with Barcelona, and Coach CarlesRexach was impressed – offering Messi a contract, which included paying for Messi’s treatment in Spain. Messi moved to Barcelona with his father and became part of the prestigious FC Barcelona youth academy.

“I made a lot of sacrifices by leaving Argentina, leaving my family to start a new life. But everything I did, I did for football, to achieve my dream. That’s why I didn’t go out partying, or do a lot of other things.” – Lionel Messi

Messi progressed through the ranks and was given his first appearance in the 2004/05 seasons, becoming the youngest player to score a league goal. In 2006, Messi was part of the double-winning team which won both La Liga (Spanish League) and the Champions League. By the next season, (2006-07) aged just 20, Messi was the first-choice striker and an essential part of the Barcelona team – scoring 14 goals in 26 league games.

In the 2009-10 season, Messi scored 47 goals in all competitions, equalling Ronaldo’s record total for Barcelona. As the seasons progressed, Messi kept improving and breaking his own records. In the calendar year 2012, he broke the all-time world record for most goals scored in a calendar year. His final total of goals in 2012 was 91 – beating the previous record of 85 by German Gerd Muller, and Pele’s milestone of 75 in 1958. This is what Gerd Muller said about him:

“My record stood for 40 years 85 goals in a year and now the best player in the world has broken it, and I’m delighted for him. He is an incredible player, gigantic.”

In today’s world, you can’t even survive without a critical skill. That is why you must discover what they are, or train to acquire one. Skills are the differentiating factor in today’s workforce and they determine the level you operate in any society or group. You are valued based on your skills and the value you add to people and organizations.

Develop your skills by training.

To your Success

Lawrence Obi