Let’s go to the root cause of this issue.

When you think your cost of capital is zero, you are under no obligation to multiply it. A house in banana island will generate better value than a tech startup. Because your cost of capital is zero. https://twitter.com/eldivyn/status/1288773245186039820

The typical African becomes rich through rent-seeking. They generate no value before making money through the right connections.

Let me correct that: they generate negative value by capitalizing on dysfunction. Unfortunately, the cost is externalized to the society.

Because they’ve generated money by doing nothing, the first thing they do is protect it by all means. Bank accounts abroad and houses in banana island, even if no one lives there.

Now contrast that with someone who created value and birthed his wealth by sweat and blood.

Such people feel the hustle in their souls. They see the pain and they know what it takes. And they are always willing to write that cheque.

Why? Because they know if they lose it all, they can start all over again. Because by building their wealth, they have build structures.

Once you have made money by sweat, you can make it back all over again. The second time is always easier than the first because of the connections and structures you’ve built along the way.

As for the rent-seeker, there is no structure. It is only connections.

And as we all know, connections are fickle. There is no guarantee that the person in power today will be in power tomorrow. So why take a risk on something that might not work when there is no coming back if you lose the first time?

At the end of the day, it has nothing to do with the color of the skin but how the money was made and the predominant culture around you.

That’s why hushpuppi bought a Bentley rather than buy a hotel in Oworonshoki.