IN 2009, the Democratic Republic of the Congo (DRC) had an estimated US$24 trillion in untapped mineral deposits, including the world’s largest reserves of coltan and significant quantities of the world’s cobalt.
The United States Geological Survey estimates that the DRC has 1 million tonnes of lithium resources. The mineral industry of Africa is the largest mineral industries in the world. Africa is the second largest continent, with 30 million km² of land, which implies large quantities of resources.
The 10 African minerals of highest economic value include: oil and gas — petroleum oil and natural gas is the driving force behind many economies in the
continent; gold — gold is the most mined resource in Africa; diamonds — African countries greatly contribute to the world’s share of natural diamonds; copper;
coal; platinum group metals; uranium; aluminium; bauxite; and iron and steel.
Agriculture in Africa has a massive social and economic footprint. More than 60% of the population of sub-Saharan Africa is smallholder farmers, and about 23%
of sub-Saharan Africa’s GDP comes from agriculture. Yet, Africa’s full agricultural potential remains untapped.
Agriculture forms a significant portion of the economies of all African countries, as a sector it can therefore contribute towards major continental
priorities, such as eradicating poverty and hunger, boosting intra-Africa trade and investments, rapid industrialisation and economic diversification,
sustainable. Tourism remains a key driver of Africa’s economy and contributes to job creation.
Tourism has become an important source of income for many regions and even entire countries. It also generates opportunities for employment in the service
sector of the economy associated with tourism.
Under-development in Africa is as a result of many contributing factors which include poverty, illiteracy, large extended families, corruption and lack of accountability. Poverty is one of the causes of underdevelopment in Africa. Unfortunate events such as slave trade, wars and other bad incidents.
Poverty in Africa is caused by a number of factors including corruption and poor governance, limited employment opportunities, poor infrastructure, poor
resource usage, wars and unending conflicts, poor World Bank and International Monetary Fund (IMF) policies, among others.
The poor World bank and IMF policies have also contributed to the downfall of the economy of several African countries. Critics of the World Bank and IMF have argued that policies implemented by African countries, intended to control inflation and generate foreign exchange to help pay off the IMF debts, often result in increased unemployment, poverty and economic polarisation thereby impeding sustainable development.
In May 2019, the IMF warned that African countries could face revenue shortfalls if the continent starts the implementation of the African Continental Free
Trade Agreement (AfCFTA) as planned.
The IMF maintained that, although the agreement will boost trade on the continent, it will negatively affect earnings and employment opportunities in some sectors of the member countries’ economy.
I believe that Africa tariff-free access to a huge and unified market will encourage manufacturers and service providers to leverage economies of scale; an increase in demand will instigate an increase in production, which in turn will lower unit costs.
Consumers will pay less for products and services as businesses expand operations and hire additional employees.
We look to gain more industrial and value-added jobs in Africa because of intra-African trade.
The AfCFTA, signed by 44 African countries in Kigali, Rwanda, in March 2018, is meant to create a tariff-free continent that can grow local businesses, boost intra-African trade, rev up industrialisation and create jobs.
Free trade is a policy to eliminate discrimination against imports and exports. Buyers and sellers from different economies may voluntarily trade without a government applying tariffs, quotas, subsidies or prohibitions on goods and services.
Free trade is the opposite of trade protectionism or economic isolationism. Why do countries join trade blocs? Increased foreign direct investment: An increase in foreign direct investment may result from the creation of trade blocs.
This can benefit the economies of participating nations by creating jobs in new or expanded businesses. Trade Effects: Trade blocs eliminate tariffs, which drives down the cost of imports.
Although economic liberalisation in Africa’s economies is greater than ever before, there are signs that many have reached a “freedom plateau” where they will remain unless and until third-generation economic reforms are implemented.
All is needed are policies which will never be toxic for business regulation. Transparency is the cornerstone of nation-building. Many life solutions are practical not intellectual but to adhere to the “constitution”.
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