Africa – one of the best continents in the world which is
characterized by a vibrant culture and wonderful people. It is a hotbed of
amazing destinations, and this is why you find people from all walks of life
heading to this part of the world to enjoy their vacations or summer holidays.
However, a big problem eats Africa from within – most of the
countries on the continent are in the "third world."
Even though there is a substantial agricultural workforce,
Africa's economy is not something to smile about. This is primarily blamed on
the fact that most of the countries gained independence a few decades ago, and
putting structures that can lead to economic transformation has been the
primary challenge.
To add salt to the injury, experts project that by
mid-century, the region will lose up to 30% of its crops thanks to climate
change, and this could deteriorate the climate even further. The good news is
that third world countries in Africa can transform the economy and reduce poverty,
eliminate the risk of climate change, and improve productivity.
Africa business can thrive, and these nations that
depend mostly on international aid can rise, and become an inspiration to other
third world states in other continents across the globe. However, the
overarching question remains, how can these countries achieve this? Well, below
are some methods that can work.
Get the fundamentals
right
A few basics can help underpin an inclusive and sustainable
economic transformation. These include macroeconomic stability, decent employments, access to
finance and better management of sub-Saharan Africa’s abundant natural
resources Greater voice and accountability are essential to ensure
government responds to people’s needs, effective management of public budgets. On the social side, the
fundamentals include social and human development policies, with an emphasis on
public health, education and gender equality.
Transform agriculture
and land use
Low crop yields and rapid population growth have pushed the
expansion of cropland in sub-Saharan Africa far beyond the global rate, since
more farmland is needed to grow more food for more people. This contributes to
deforestation, exacerbates vulnerability to climate change and puts pressure on
the fragile ecology in the region’s vast drylands. Intensifying agriculture to
boost yields, combined with climate-smart farming techniques, can help boost
farmers’ incomes, reduce environmental degradation and strengthen resilience to
climate change. Landscape management efforts in Niger have allowed farmers to
produce 100 kg/ha (90 lbs/acre) more grain than before, with gross real annual
incomes increasing $1,000 per household for more than a million households.
These approaches should be mainstreamed into national agriculture plans.
Diversify into manufacturing
and other high-productivity sectors
Sub-Saharan countries have the potential to make robust
gains in manufacturing and other modern sectors. Africa’s share of world
manufactured export markets is so tiny – less than 1 percent – that even a modest
increase could have a big impact on the sector’s growth. To build up
manufacturing, there is an urgent need to strengthen infrastructure, in
particular for electricity. Focused efforts are needed to promote manufactured
and tradable service exports through better logistics, special economic zones
and other initiatives. Selective industrial promotion policies can help
overcome market failures, as long as they’re accompanied by transparency and
accountability.
Unleash the power of
urbanization
By 2050, sub-Saharan Africa’s cities will increase by almost
800 million people, nearly half of the projected rise in urban population
globally. Urbanization in sub-Saharan Africa has been something of a missed
opportunity so far, as it hasn’t been accompanied by economic transformation.
Many cities already suffer from severe traffic congestion, long travel times,
high road fatality rates, low energy efficiency, rising outdoor air pollution
and rising GHG emissions. While urban populations are growing rapidly, in many
cases, cities' physical footprints are growing even faster, creating urban
sprawl. Kampala, for instance, grew geographically by more than 10 percent a
year from 1990-2000, while population grew by 4.3%. A shift towards more
compact, connected and coordinated cities will assist in creating a more
productive, inclusive and clean urbanization.
Foster a modern
energy transition
Economic transformation in sub-Saharan Africa will require a
large increase in energy supply. At present electricity consumption per capita
is 17 of the world average, not enough to continuously power a 50-watt light
bulb. Some 620 million people lack access to electricity. Sub-Saharan Africa
has a few good things going for it on energy, though. For one, it has an enormously
rich portfolio of clean energy assets: about 1,100 gigawatts (GW) of solar
capacity, 350 GW of hydro, and 109 GW of wind. In addition, global
technological progress has created the potential for developing countries to
leapfrog to much more energy efficient processes and products than were
available to other countries as they developed decades ago.
Develop critical
infrastructure
One of the main reasons why most countries in Africa lag in
development is because they lack crucial infrastructure. Economist asserts that
the lack of modern infrastructure in most African countries costs the
entire continent about 2% in GDP every year, a figure that cannot be
ignored.
Third world countries in Africa need to invest in key
infrastructures such as roads, railways, communication, and electricity. This
will, in turn, increase productivity and enhance the smooth transportation of
goods to readily available markets. Ultimately, a boost in economic
output will be realized.
Another essential thing that African countries need to
invest in is sanitation systems and clean water which will lead to a healthy
population. As they say, a healthy nation is a working nation. Therefore, with
good health, the population will work and increase GDP, which will lead to
notable economic growth.
Develop human capital
If third world countries in Africa want to develop
economically, they have no option but to invest in the skills of its people.
This is critical in improving the standards of living. According to the United
Nations, more than 33% of school-aged children do not go to school in
sub-Saharan Africa. Additionally, 50% of women under the age of 25 are
illiterate. This is shocking!
African nations need to improve access to education and come
up with laws that will make elementary and secondary education compulsory for
all children. Some countries such as Kenya have already rolled out a program
that will see 100% transition from primary school to secondary school, which is
an excellent step towards future economic growth.
Fight corruption
It is a shame that the most corrupt countries in the world
are in third world, and those that top the list are from Africa.
A country cannot thrive if over half of its budget is used
to finance corrupt dealings. Fighting this vice should be a national issue, and
governments need to ensure that those found capable are brought to book, their
property seized, and the money used to build modern infrastructure.
Address population growth
Proper Education
systems
Education and skills development are the only secure
foundation for inclusive growth – and Africa lacks those foundations. Fewer
than one-in-three of the region’s children make it to upper secondary school,
starving firms of skilled workers and closing an escape route from poverty.
To make matters worse the quality of education is abysmal.
In Vietnam, sustained growth has been underpinned by the development of an
education system that is producing learning outcomes to rival those in the UK.
Tanzania is seeking to achieve universal secondary schooling. But after five
years of schooling, fewer than half of the country’s children can pass a grade
2 numeracy test – and the case is not untypical.
Fixing Africa’s failing education systems should be seen as
a top economic policy priority.
Demography adds to the urgency. By 2030 the number of
Africans aged 15-to-24 will rise by 100 million. Equipping this rising
generation with skills would act as a catalyst for dynamic and inclusive
growth. Yet few political leaders have grasped the nettle of education reform.
Peace and Security
In a more stable political and economic environment, some of
these countries could tap their natural resources to finance economic growth.
The Democratic Republic of the Congo, for example, controls half of the world’s
cobalt reserves and a quarter of the world’s diamond reserves. Sierra Leone has
about 5 percent of the world’s diamond reserves. Ethiopia and Mali have 22
million and 19 million hectares of arable land, respectively. If these countries
where peaceful, it could attract businesses to help develop their resources,
they could push their economies upward on the path of steadier growth.
Furthermore, the rate of return on foreign
investment is higher in Africa than in any other developing region. Global executives
and investors cannot afford to ignore this. A strategy for Africa must be part
of their long-term planning.
The time for businesses to act on those plans is now.
Companies already operating in Africa should consider expanding. For others
still on the sidelines, early entry into emerging economies provides
opportunities to create markets, establish brands, shape industry structures,
influence customer preferences, and establish longterm relationships. Business
can help build the Africa of the future. And working together, business,
governments, and civil society can confront the continent’s many challenges and
lift the living standards of its people.
Too often, Westerners ask only whether Africa's problems
affect their security and, learning that they do not, decide to ignore them.
Such short-term thinking must now change, especially given the new, global
threats that have emerged since September 11. The West should adopt a new,
enlightened form of self-interest and be open to engaging in new sorts of
involvement in Africa. Sick states there cannot be restored with the medicines
and surgical techniques of a bygone era. What is required instead are
international joint ventures as discussed above. These arrangements would avoid
the evils of colonialism and the errors of more recent peacekeeping and
state-building efforts. The outcome -- a healthier, more stable, and more
secure Africa -- would benefit everyone, on the continent and around the world.
Finally, African countries need to address the issue of
population upsurge. In 2010, this continent was home to 1 billion people.
Experts project that if the current birth rates are anything to go by, the
population will double in the next two decades. To alleviate poverty,
developing countries need to put emphasis on family planning. When birth rates
are reduced, GDP per capita will increase, and high standards of living will be
improved. #SustainableAfricanEconomies #FixingAfrica #ItsPossible #HealthySecureStableAfrica
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