Economic growth in Africa

Economic growth in Africa

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economic growth in africa

Africa could transform its economy and witness a tremendous growth in development by improving their integration into the global production of goods and services, enhance the economic situation of Africa resistant to both internal shocks as foreign and about to make a solid economic growth.

If African countries were to maintain economic growth over time and ensure those benefits to the majority of the population it would help to finish with structural inequalities. They should continue their efforts to restore economic engine valves and continue to manage macroeconomic factors with caution. The slightest imprudence on his part could damage growth prospects. African countries should consider as a long-term opportunity to contribute to global value chains as an integral element of its strategy to grow robust, sustainable and inclusive way.

The UN report ( PDF ) about the African economic situation indicates that more effective participation in regional and global chains -the set of activities in various countries encompassing the life cycle of a product from conception to final- as consumption could serve as a springboard to Africa value diversify of its economy, mobilizing its internal resources and invest in critical infrastructure. For this, the continent must, above all, avoid slip back into low value-added activities. For example, Africa’s exports to the world grew faster than those in other regions in 2014, but most were staples that do not add more than 3.5% in world exports of goods of the same year.

 

economic growth africa

Avoiding this means investing in new more productive sectors, developing skills, creating jobs and acquire new technologies, knowledge and the markets informations. These interventions require sound public policy and business community willing and able to contribute to the realization of such benefits.
South Africa has been used as an example to all this. Where they managed to straighten his car industry significantly after eliminating obstacles and propose incentives to producers of spare parts and assembly lines. Also it shows that the development of agricultural business value chains in countries such as Ghana, Kenya and Ethiopia has worked in favor of job creation and has been an engine for economic growth in africa.

African economies have great potential with dynamic demographics, rapid urbanization and wealth in natural resources. Today, the challenge is to ensure the best possible integration into the global value chains and that its benefits contribute to the improvement of living conditions of the population of each country. Public policies should articulate in the picture of a concrete strategy to promote a more egalitarian economic and social transformation, while a sensible development ecologically.

The remarkable progress made in the field of human development, which translate into lower rates of poverty, a rise in income and higher rates of school enrollment and health coverage. Furthermore, he claims that real progress in this regard through the empowerment of citizens and environmental sustainability in order that the entire population can benefit.

economic developement in africa
Effective integration of value chains in poor and marginalized populations, which often includes women requires specific public policies and open business models to facilitate access to productive resources such as land and funding, strengthening productivity and increasing resilience by small producers.

At the moment there is an integration with global value chains, appropriate to mitigate potential risks, such as price volatility, unfair competition and vulnerability measures must be implemented. While regional and global networks provide opportunities incredible, women, men and communities must be able to compete from a fair position.

The matter here is that Africa has become the richest continent in the world in terms of natural resources such as oil, natural gas, uranium, coltan and all types of metals. The main problem here is that all these minerals are buried right under rain forests and many other lands with high rates of biodiversity that only live in there. If these African countries decide to extract all those minerals will have to destroy those ecosystems which will never again be replaced. Maybe it is not fair to tell Africa what is the path they should follow, because it is clear that in the US, Europe and Asia… we have all destroyed our ecosystems in order to “develop” our economies. But now we are already regretting it and paying the consequences.

My solution here is simple. The developed world has to give (for free) the most advanced technology in terms of electricity production to avoid the creation of more mines that will destroy the African continent. With wind power and geothermal plants Africa could supply all the power they need to grow. It is not cheap, it will definitely be a high risk investment but our children will benefit from our actions in the present. Let’s try to make a better world from the beginning before is too late.

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