The whole fuss over Facebook’s IPO – whether it’s overvalued, undervalued, or if Mark Zuckerberg wields too much veto power is a strange conversation to the ears of Africans. Every news outlet is crunching the numbers. I have a “different set of numbers” to list here – a bunch of people are getting crazy rich from this IPO alright, but just how rich from an African perspective:
1: Facebook’s estimated market cap: $70-100 billion, this is THREE TIMES the entire GDP of Ghana, which has a population of 24 million. This market value is also greater than the GDP of every single Sub-Saharan African country except South Africa and Nigeria, which has a population of 160 million.
2: Facebook’s revenue last year averaged over 3,200 employees was $1.2 million. Thus the”per capita GDP” of Facebook is 1,000 times the per capita GDP of an average Ghanaian (note it is actually more than 1,000 times the average annual income of a Ghanaian because GDP is more than just the sum of household income), and 10,000 times the average annual income of a Burundian, Congolese, or Liberian.
3: Mark Zuckerberg’s personal wealth from Facebook is $28 billion (assuming $100 billion market value). This figure is MORE THAN DOUBLE the GDP of the Democratic Republic of Congo, which has 71 MILLION people and covers an area equivalent to the entire United States east of the Mississippi.