Factors Hindering Growth of Economy in Africa
There are several factors that affect economic growth in Africa such as investment, high education and development of infrastructure. These same factors have contributed towards holding the continent back from development.
There have been numerous economic reforms made in the continent and deals which have been given to China (on resource rights) that have made it possible for the continent to record gradual growth. Climate change, politics and unstable governments have also contributed towards hindering economic growth in Africa. The following are some of the factors that continue to hinder economic growth within the continent.
Majority of the African nations are not economically empowered because they don’t understand what sets the difference between the underdeveloped countries and developed ones such as Europe, Asia and America is technology. Simply put, this means how a country is able to create access and make use of ICT and Science to solve socio-economic issues. Technological innovation is what drives the world. Agriculture, transportation, clean water and medicine are all influenced by technology and the continent needs to embrace this in order to advance.
Poorly planned economic structures
Because majority of African nations haven’t adopted technology, they also haven’t made any changes to the economic structures they inherited after gaining independence. As a matter of fact, most African nations, if not all, rely on exportation of raw materials such as diamond, cocoa timber in raw forms yet there is no value in such exportation. Since they don’t have the capacity to manufacture, it also means they have to import things and this further hinders economic development.
This is major economic development deterrent and it is seen in African countries such as Sudan, Sierra Leone, Somalia and Congo. Whenever there is civil war in a country, investors do not dare to make any investment and this in turn inhibits growth and impedes employment opportunity creation. What is more, the infrastructure is also affected and this forces such countries to spend more on repairing infrastructure than coming up with development plans.
Foreign aid overdependence
While foreign aid is of great benefit to Africa’s economy, overreliance on the same has caused the economy to stagnate. For majority of African nations, foreign aid makes up a large percentage of the budget yet this shouldn’t be the case. Africa needs to get on its feet so it no longer relies on foreign aid to enhance education or infrastructure. African nations should therefore look for ways of creating their own revenue instead of budgeting on what will be issued by developed nations.
With help offered by writers at EssaysExperts.net, you can buy a high quality and perfectly written paper that will earn you an ‘A’ grade. We have the best writers on our team hired after they have gone through a series of tests to prove they have great research and writing skills.
We guarantee the minute you place your order with us, you will receive a paper that is 100% tailored to match your academic standards. We have a competent team of editor and a quality assurance team that counterchecks each paper to ensure it is written according to your guidelines.
Go on and place your order with us today in order to enjoy perfectly written and well formatted papers that meet and exceed your expectations!