What Happened to Africa's Economy - Part 2

What Happened to Africa's Economy - Part 2

Africa, consisting of 54 countries, is tagged the second largest continent and it is blessed with a lot of resources. The African soil is known to be fertile and a good option for agriculture. Experts have said that with the agrarian soil in Africa, the continent is capable of becoming a major food production hub of the world. To put it in context, Africa is capable of producing over 50% of agricultural products demand in the world.

Not only is the land fertile for agriculture, but the lands are also rich in mineral resources. All across the African continent are countries endowed with both oil & gas and solid minerals. There are countries with very large reserves of petroleum, gold, bitumen, coal, and a lot of other mineral resources. It has been said that African land is richer in mineral resources than other major continents of the world.

Unfortunately, despite the presence of these great endowments, the economy of Africa seems not to witness a radical change expected of such abundance. Most nations in Africa are largely underdeveloped. Only a hand few of African countries are tag ‘developing’.

This is quite sad. European and Asian countries known as developed countries have little natural resources at their disposal compared to African's. Nonetheless, they are able to maximize the little resources at their disposal to the best of their economy. Hence the need for the question, 'What happened to the Africa Economy?'.

New to CrestWayTrade? Open an account with us today for FREE!

Factors Responsible for the Underdevelopment of Africa Economy

The Africa economy is underdeveloped no doubt. However, this underdevelopment can be traced to some external and internal factors.
Each of these factors is analyzed below;
Imperialism, Colonialism, and Slave trade

Although the first series of this article partly addressed this. However, the fact that the effect of colonialism on Africa's economy is severe cannot be overemphasized. It has been the foundation of economic problems in the whole of Africa. As a matter of fact, after so many decades, Africa and its economy are yet to recover from these effects despite independence.

The European colonizers were known to have adopted a series of measures to enforce rules within Africa. Some of those rules include the determination of currency value. During colonization, the colonial masters made their currency the same currency for their colonized territory. After independence, they were able to determine the value of the new currency of those countries.

The market structure adopted by the colonial master was also unfavourable. To enforce compliance and dominance, there was an implementation of taxation. This was an attempt to drain the economic value of the people and to make them submissive. The working class that could have been an added advantage to the economy were made to work low paying jobs.

New to CrestWayTrade? Open an account with us today for FREE!

Internal factors

The activities of colonial masters are known to be external factors responsible for Africa's bad economy. Nonetheless, there are also internal factors within Africa countries responsible for her economic downward spiral. In spite of several attempts to curtail the effect of colonialism on Africa's economy. These internal factors are the ones upholding the bad economic condition. The factors are highlighted below;

- Bad governance
- Civil war
- Bigotry, nepotism, and tribalism
- Politicisation of economic interest
- Poor investment culture
- High rate of unemployment
- Preference for foreign good over locally made goods
- High rate of bribery and corruption
- Economic sabotage
- Insurgency
The above is clearly stated as factors responsible for economic decline in Africa.

Conclusion

African countries have enough resources to cater for their economic advancement. Aside from the fact that the majority of these resources remain unused, untapped, and unexplored. The activities of colonialism were instrumental to the underdevelopment. Meanwhile, the internal factors responsible for African underdevelopment will be explored in the next article. Please stay with us on this journey and let us know your thought so far.

References

- Wikipedia: Economic history of Africa
- Published journal: Colonialism, independence, and Underdevelopment in Africa by Princewill Dimkpa

New to CrestWayTrade? Open an account with us today for FREE!

Comments

fagbohun 08 Apr '21
Good information.
julies 07 Apr '21
Bad government
sussanah 07 Apr '21
Bad governance; the bane of Africa's underdeveloped economy
goddey 07 Apr '21
What an great lecture
doublesupol 07 Apr '21
Bad governance and personal greed
blackmanoj 06 Apr '21
We will definitely be great if we utilized our resource well
idowu_omohu0001 06 Apr '21
Bad leadership and selfishness is Africa's problem
stevoo 06 Apr '21
The problem of Africa is bad governance, bribery and corruption, and poor implementation of policy etc
gs49 06 Apr '21
Yeah bigotry
ogodo 06 Apr '21
It's indeed a great platform
aa4love1 06 Apr '21
Bad leaders n bad governance is d cankerworm eating us deeply presently in Africa. If not we would hav been so great that even the colonial masters will still come n request from us. Bt reverse is the case
marveltimmy 06 Apr '21
Nice write up.
thesecondson 06 Apr '21
Great article
umoh 06 Apr '21
Nice write-up
evedyne 06 Apr '21
With all that has happened i still believe in Africa
julies 06 Apr '21
Africa will be good again
nwokedi 06 Apr '21
Wow!!! very educative!!!
jonathanchama 06 Apr '21
Africa will be great again
dareakins 06 Apr '21
Things will fall back in shape.
tosyn 06 Apr '21
Insightful piece
fagbohun 06 Apr '21
Nice information.
adebiyi 06 Apr '21
so enlightening
adebayo 06 Apr '21
Internal factor is more dangerous and has greater bad effect on us than colonization
smeg 06 Apr '21
Internal factors are more of a challenge. Corruption is a major killer!
amodumujeeb 06 Apr '21
It is well with African countries
amodumujeeb 06 Apr '21
It is well with African countries
bimak 06 Apr '21
Information is power
ayakaterver01 06 Apr '21
Best alternative income
pedromartine 06 Apr '21
I just learnt from Crestway
tonwee 06 Apr '21
Whoa! Nice write up.
smeg 06 Apr '21
Very impressive. Kudos
mkumz01 06 Apr '21
Very comprehensive
ogugua 06 Apr '21
This is still happening up till now
ijebs 06 Apr '21
We Africans r blinded by so many things, enthusiasm dies on a daily.. it high time we wake up Nd take charge..
coppy91 06 Apr '21
My love for this crest way trade no be here ooooo. Kudos to crest way trade
missgenius 06 Apr '21
Thanks Crestway
vychthur 06 Apr '21
Earn and get enlightened na crestway be that
parckadity 06 Apr '21
Crest way sure like bible
ajuluchukwu 06 Apr '21
Crestway surest way
olanite11 06 Apr '21
Good write up thanks
aliwa 06 Apr '21
Masterpeice
chalice2020 06 Apr '21
Very educative
saunobele 06 Apr '21
Good one. Make me remembered what we learn in old days
olad 06 Apr '21
Very informative crestway
olad 06 Apr '21
Very informative crestway
ruqyatu 06 Apr '21
May God help our economy
nafsy 06 Apr '21
Great discovery
jstar 06 Apr '21
Another word for corruption is Africa
97242835gc 06 Apr '21
Nice piece very educating
jwealth 06 Apr '21
Beautiful!
rosysexy19 06 Apr '21
Nice one, expecting more
olaknight 06 Apr '21
Nice article
chosenboy 06 Apr '21
Such a nice write-up
maceke 06 Apr '21
Yes Africa need self reliance.
ayotunde 06 Apr '21
Knowing the problem is one step and how to solve it is another..
adline 06 Apr '21
This is so educative
pantheon 06 Apr '21
Thumbs up. Weldon crestway
sundex 06 Apr '21
Very educative
olamichael 06 Apr '21
Insightful and educating. Thanks for the opportunity
omolejerome 06 Apr '21
Educative write up you have here .
michael95 06 Apr '21
Great insight!
oladiti 06 Apr '21
What an insight ....
valentine1413 06 Apr '21
Wow! I'm learning.
bolurepublic 06 Apr '21
Good write up
ioryenge 06 Apr '21
Seriously learning ooo.. More wisdom Crestway... De sure way...
osak 06 Apr '21
Greater impact
egbuonye 06 Apr '21
Quite Impressive
You must be a registered user on crestwaytrade to drop comments on our articles. Kindly login here or signup here

More Articles

Men Who Built America - Part 2 (Cornelius Vanderbilt) ...

Born 1749, Cornelius Vanderbilt is said to have accumulated ...

Read more>>
Men Who Built America - Part 1...

The popular saying 'America was not discovered, it was built...

Read more>>
Black Wall Street - A brief History...

I bet a larger percentage of people reading this are just he...

Read more>>
Who enthroned the Dollar? ...

Have you ever asked why the United States Dollar is the worl...

Read more>>
Evolution of Money - Part 2...

The previous topic discussed the definition of money and the...

Read more>>
Evolution of Money ...

The invention of money can be said to be one of the greatest...

Read more>>
What Happened To Africa's Economy - Part 8...

Over time, we have been able to establish the inadequacies i...

Read more>>
What Happened To Africa's Economy - Part 7 (Case Study of DR...

After Algeria, DR Congo is the second-largest country in Afr...

Read more>>
What Happened To Africa Economy - Part 6 (Case Study of Ugan...

The Republic Of Uganda is a country located in the East-Cent...

Read more>>
What Happened to Africa's Economy - Part 5...

South Africa is located in the south-eastern part of Africa ...

Read more>>
What Happened to Africa's Economy - Part 4 (Case Study of Ni...

If you have been following the series, we have been able to ...

Read more>>
What Happened to Africa's Economy - Part 3...

Exploring the economic situation of African countries is int...

Read more>>
What Happened to Africa's Economy - Part 2...

Africa, consisting of 54 countries, is tagged the second lar...

Read more>>
What Happened to Africa's Economy...

African is the second largest continent in the world after A...

Read more>>
Financial Intelligence - The What and Why...

You may or may not agree with us, but the problem with many ...

Read more>>
Fundamentals of Economics & How it Relate to Us...

Consciously or unconsciously you carry everyone carries out ...

Read more>>
The Apex Bank - Who, What and Why...

The Apex Bank is the highest bank in any independent nation...

Read more>>
Welcome to CrestWayTrade...

CrestWaytrade is a robust portfolio management platform that...

Read more>>
What's New With CrestWayTrade - Introducing CrestWay Juicy N...

One of the smartest investors in the world, Warren Buffett, ...

Read more>>
For technical complaints, mail us here