Corruption is now rife in Africa to the extent that a prominent African business man based in London has launched an annual $5 million prize for Africa's most effective head of state.

Egyptian born Mo Ibrahim, who operates a mobile phone business in the U.K., says African leaders shall be rated every year to pick the eligible candidate. The successful candidates will get $5 million over 10 years when they quit power. They'll also get $200,000 annually for life.

Ibrahim told the BBC, "We need to remove corruption and improve governance." He believes without corruption and good governance, Africa would no longer require foreign aid. Ibrahim adds that, "The day we do not need any aid will be the most wonderful day in my life."

Dubbed the, "Mo Ibrahim Prize for Achievement in African Leadership," the initiative shall be launched on Thursday in London. The awards shall go to African leaders who offer security, health, education and economic development to their subjects.

The 60-year-old told the Financial Times newspaper, "Suddenly all the mansions, cars, food, wine is withdrawn. Some find it difficult to rent a house in the capital. That incites corruption; it incites people to cling to power."

While many have welcomed the move, Patrick Smith, of specialist publication Africa Confidential, told the BBC, "The people who know what to do and have done well are already doing it. And the people who are doing badly and are killing their own people or stealing state resources are going to carry on doing that."