Poverty Solutions in the Capital Market (A Flagship Initiative of the Empower Africa Today Poverty Fund)
By Prof. Magnus Kpakol, Executive Chairman, Economic Growth and Development Center (Economic Center)
Background and Rationale:
Despite numerous efforts, poverty rates in Nigeria and across Africa continue to rise, highlighting the urgent need for innovative and sustainable solutions. Traditional strategies, while important, have often failed to directly connect the poor with long-term opportunities for wealth creation. After years of service, including roles as Chief Economic Adviser to the President of Nigeria and National Coordinator of the National Poverty Eradication Program (NAPEP), I have come to a firm conclusion: Capital is the antidote to poverty.
Poverty cannot be fully eradicated without access to capital — financial, human, natural, and physical. Unfortunately, the poor remain largely excluded from the capital markets, arenas historically dominated by the wealthy. Legacy Wealth (Poverty Solutions in the Capital Market) as a project aims to change that by creating direct pathways for the poor to participate in wealth creation mechanisms and end the intergenerational transfer of poverty.
Project Objective:
To connect disadvantaged individuals and communities to the capital market, enabling them to build generational wealth, improve financial inclusion and literacy, and escape the cycle of poverty perpetuation.
Strategic Approach:
- Mobilize grassroots contributions from students, farmers, traders, transport operators, cooperatives, and other marginalized groups.
- Pool small individual contributions through custodians who will work with licensed asset managers to invest these funds in the capital market.
- Match pooled funds with contributions from socially responsible “heroes and champions” (individual philanthropists, businesses, and other supporters).
- Mandate human capital development by requiring participants to enroll in financial literacy, financial inclusion, income management, and soft skills training programs, coordinated by the Economic Growth and Development Center (Economic Center).
- Provide additional benefits such as free access to the One Shout App for enhanced personal security.
- Offer leadership opportunities and monthly compensation to student leaders and coordinators based on mobilization performance.
- Establish a Board of Advisors to provide strategic guidance, advocate for the program, and support expansion across Nigeria and Africa.
Target Groups:
- Students in tertiary institutions
- Farmer groups and cooperatives
- Market women and traders
- Transport workers
- Low-income communities
- Disadvantaged and vulnerable populations
Key Activities:
- Awareness Campaigns in universities, communities, markets, and rural areas
- Capacity Building Workshops on the capital market, financial market, financial literacy, financial inclusion, investment basics, entrepreneurship, income management, and soft skills
- Fund Mobilization Drives led by trained professionals, stakeholders, student and community leaders
- Investment Management by professional asset managers
- Monitoring, Evaluation, and Reporting by Economic Center to ensure transparency, accountability, and impact measurement
Expected Outcomes:
- Increased participation of low-income individuals in the capital market
- Improved financial literacy/inclusion and personal income management among participants
- Creation of generational wealth among previously disadvantaged communities
- Stronger community institutions capable of investing in education, healthcare, and infrastructure
- Reduction in poverty rates and intergenerational poverty cycles
- Promotion of entrepreneurship and higher quality of life for all
Partners and Stakeholders:
- Universities and student organizations
- Business, Academic and Government organizations; and Civil society
- Community-based organizations and cooperatives
- Poverty eradication heroes and champions
- Poverty Eradication Promise Keepers – PEP Keepers
- Financial institutions and custodians
- Licensed asset management firms
- Philanthropists, corporations, and social investors
- Securities and Exchange Commission (SEC) and other Government agencies/ regulatory bodies
- Media partners for advocacy and publicity
Governance:
The project will be governed by the Empower Africa Today Poverty Fund program of Economic Growth and Development Center, with advice provided by a distinguished Board of Advisors, comprising leaders from business, academia, government and civil society. .
Conclusion:
The Legacy Wealth (Poverty Solutions in the Capital Market) program is an innovative, bold, and transformational initiative designed to dismantle the barriers that keep millions trapped in poverty. By connecting the poor directly to the capital market, breaking the chains of intergenerational transfer of poverty and building the financial and human capital of the poor, we will unlock new possibilities for sustainable development and prosperity across Nigeria and Africa.
Capital is the key to ending poverty — and now, the poor will have their rightful place at the table of wealth creation. Legacy Wealth is now the new thing in the capital market. Poverty, you are history.