What Happened to Africa's Economy - Part 3

What Happened to Africa's Economy - Part 3

Exploring the economic situation of African countries is intriguing. It leaves you to ask the question as to why the economy remains stagnant regardless of the massive endowments. A Research gate study has revealed that even the slight growth in Africa's GDP does not have an equitable share and an inclusive benefit. That is, there is no change in the rate of poverty in the continent.

Having discussed the foundational problem responsible for the bad economic situation in Africa - Colonialism. It is imperative we analyse the internal factors as well. These are the occurrences within Africa responsible for her stunt economic growth even after independence.

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Internal Factors responsible for Africa economy underdevelopment

The bad economic condition in Africa cannot be traced to imperialism, colonialism, and slave trade alone. Series of academic journals and even Wikipedia has attributed this menace to both colonialism and internal factors. These internal factors are explained as follows;

Civil war

Not long after independence and the departure of colonial masters. There was an outbreak of Civil Wars across several African countries. Nigeria had its own civil war in 1967 - 1970. The civil wars were either a result of a power tussle, control of economic assets or tribal differences. Consequently, these wars resulted in the destruction of lives, property and affected economic development.

Examples of countries involved are Nigeria, Liberia, Congo, Somalia, Sudan, Mali, and the Central Africa Republic. Ethiopia is currently experiencing a civil war between the UN-recognized government and the Tigray region. Just a few days ago an ISIS backed militias took over Palma a city in the north-eastern region of Mozambique. A good number of us are probably aware of the current situation of things in Nigeria - the herdsmen issues.
Bad Governance

This is another major plague that has affected the entire Africa continent. People in the helm of affairs are either incapable or unworthy. This is because of a lack of proper consultation and evaluation before assuming a position of power. As such, misplaced leadership has given birth to poor economic policies and decisions.

The politicisation of economic interest

This is a situation whereby the national economic interest is being toiled due to politics. Politicising in Africa is of great disdain thereof resulting in indecision. A political office holder might refuse to pass a favourable economic policy due to his/her political interest. This especially is prevalent in Nigeria of West Africa.

Economic sabotage

Africa countries are suffering a big deal from economic sabotage. Interestingly, most of the economic saboteurs are the elite and the political officeholders. Evasion of tax, over-invoicing, and channelling public investment into private use are key reasons for economic decline. Terrorism and pipeline sabotage in Nigeria can as well be classified as economic sabotage.

Preference of foreign goods over locally made goods

The European have succeeded in brain-washing some African to believe in the superiority of their products. A lot of Africans have bought into this untrue philosophy. Ignorantly, they will rather buy foreign goods rather than their locally made products. The effect of this on the economy is that it dries up the foreign exchange available in the economy.

Although we understand that due to several years of product evlution and development forieng goods are better. But, if locally made good will ever meet up to that standard and still be able to sell at competitive price we need to implement a 50/50 policy. Consumer will obviouly need to create a bias for locally made goods so as to encourage local production. Government policy will come in handy in this situation.

Poor investment culture

The idea of investment is critical to revitalising the Africa economy. However, there is no encouragement from the government regarding this. An average youth in Africa will prefer immigration rather than investing in his country. This also has been part of the causes of Africa's economic decline.

High rate of unemployment

The rate of unemployment is high and increasing day by day. A larger percentage of the supposed working-class of Africa are under-employed. The adverse effect of this on the economy is that it increases the poverty ratio and shinks the middle class.

Conclusion

Africa's economy is not what it is meant to look like. The factors responsible for this are both external and internal factors. The inadequacy in leadership and policymaking is a key player in economic decline in Africa. But we can both make a difference. We will look at The Nigeira situation more closely in the next article. Leave us a comment below.

References


Wikipedia: Economic history of Africa
Published journal: Colonialism, independence, and Underdevelopment in Africa by Princewill Dimkpa
Research gate study: Factors affecting economic growth in Africa by John C. Anyanwu

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Comments

noahzawah 08 Apr '21
Information is key
chosenboy 08 Apr '21
Yes you are right
xcellent 08 Apr '21
Nigeria ????????????????
fagbohun 08 Apr '21
Nice information.
idowu_omohu0001 08 Apr '21
Africa needs a change of mindset
olanite11 07 Apr '21
Yea it's well
pedromartine 07 Apr '21
We just need to restructure the economy again
bimak 07 Apr '21
Informative
gs49 07 Apr '21
Oh......really?
97242835gc 07 Apr '21
God help us in Nigeria
ayakaterver01 07 Apr '21
Crestway is a wise choice
evedyne 07 Apr '21
The African economy will rise again against all odds
pantheon 07 Apr '21
Thank you crestway
umoh 07 Apr '21
Africa's economy is not what it is meant to look like. The factors responsible for this are both external and internal factors. Africa need to rise up.
necessity 07 Apr '21
Very educative
tosyn 07 Apr '21
Insightful , welldone CRESTWAY
nafsy 07 Apr '21
Educational
jwealth 07 Apr '21
Nice piece
olaknight 07 Apr '21
All the best Crestway
nwokedi 07 Apr '21
Sit tight syndrome!!!
fagbohun 07 Apr '21
Good information.
temi 07 Apr '21
Corruption
ishola1706 07 Apr '21
????????????
ishola1706 07 Apr '21
????????????
jonathanchama 07 Apr '21
We shall become great again!!
adebayo 07 Apr '21
Corruption and unqualified leaders top it all
michael95 07 Apr '21
We shall overcome!
patricia 07 Apr '21
Going higher
patricia 07 Apr '21
Going higher
dareakins 07 Apr '21
We shall overcome someday
ijebs 07 Apr '21
We will survive..
rosysexy19 07 Apr '21
I wish more people are enlighten about this, then we'll all be in a better place today
ayotunde 07 Apr '21
Together we can do it..
iykezcul 07 Apr '21
Wow! This is good
smeg 07 Apr '21
We're too greedy! If any seating government official will be determined to build his/her country without any desire for selfish gains, we would have gone past here
bolurepublic 07 Apr '21
Impressive!
kenhinde 07 Apr '21
Wow, I love this.
omolejerome 07 Apr '21
This issue is a perpetual continum. Nice write up.
samsono 07 Apr '21
This is an impressive economic analysis.. Can't wait for the next article
missgenius 07 Apr '21
Interesting
parckadity 07 Apr '21
Crest way its a ritual of d brain
oladiti 07 Apr '21
Economic sabotage has to be top of the log for Nigeria internal factors .
egbuonye 07 Apr '21
What a detailed write up. Part 4 on the way?
olad 07 Apr '21
Interesting
adline 07 Apr '21
Very interesting
maceke 07 Apr '21
Corruption is the main reason for economy underdevelopment in Africa. But thanks to crestway.
ogugua 07 Apr '21
Crestway lectures; Very interesting.
saunobele 07 Apr '21
Good information
valentine1413 07 Apr '21
Very Educative
kingvic01 07 Apr '21
Nigeria is a country blessed in many aspects both agricultural an mineral resources but the niglegence of leaders also have contributed alot to the economic setbacks of nigeria.
amodumujeeb 07 Apr '21
What a great write-up, but I feel non-challant attitude of some of the well meaning Africans too contributed to our present state of economy. Govt alone cannot do it all.
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