africa in focus
Uploaded by matheew on Mar 01, 2018
MAKING AFRICA GREAT AGAIN/AFRICA IN FOCUS
Diversification does not occur in the vacuum. There needs to be an enabling environment to make diversification possible. Economic diversification holds great potential to increase Africa’s resilience and would contribute to achieving and sustaining long term economic growth and development in the continent. A number of factors have been identified at making Africa a better continent for living.
For Africa to diversify and grow into one of the most prestigious continents in the world, it needs to reduce aid dependence from the foreign countries/continents. Last year, Africa’s debt stood at 50%, which is way too much for countries to pay back their debts and so this will prevent rapid Africa’s economic growth. To prevent African countries from going into debts, it needs to stick to the resources it has. It needs to practice some strategies such as import substitution strategy, export orientation strategy and also invite investors to invest in African countries. These strategies will diversify the countries economy and this will raise Africa’s GNP and GDP.
Just think as to why Europe or North America are the most successful continents in the world....It is because of good governance. Good governance involves designing and implementing policies to nurture fledgling sectors and ensuring that they can develop in an environment that allows them to flourish and contribute more to the national economy. There needs to be efficient co-ordination among different decision-makers and stakeholders in the regional and global economic environment. Different governments of different states, should encourage good relationships between countries. With a good relationship between African countries will help to promote trade between African countries. This will lead to globalization and expanding of businesses which can compete internationally. This will reduce unemployment in Africa and it will raise the standard of living in Africa.
Among the various factors that have the potential to drive economic diversification, a country’s natural resources are actually important especially to the developing countries in Africa which mainly depend on natural resources. Many countries in Africa, export natural resources to different continents and the problem with this exportation is that the prices fluctuates which lowers economic growth. Therefore, the need for expanding the beneficiation of such products, and seeking sustainable utilization where possible, are priorities for African economic growth and diversification. So in order for African countries to...