Category: Africa

Important economies
Basically it has to be said that the African continent is not completely impoverished. There are significant regional differences in this fact. The wealthiest nations can be found in the north and south of Africa. In North Africa, Egypt should be mentioned in the first place. In addition, there have been close links with the European economy for a long time.

In the south, South Africa is the continent’s most important economic nation. Due to the rich natural resources, the economy was able to develop better here. Gabon and Equatorial Guinea should also be named in this context, as they have rich oil resources. There is also positive development in West Africa.

Effects of politics on the economy
Africa is shaped by its colonial times. The legacy of colonization is still debated today. During the colonial period, Africa achieved a certain level of prosperity through the export of special raw materials. However, the one-sided orientation of the economies of the individual African states had negative consequences in the years after colonization. Years of cultivation of monocultures made the land unusable, and price fluctuations on the international market led to further problems in economic planning.

During the colonial period, the Europeans in particular were shaped by racism. That is why they set up so-called protectorates after they immigrated to African countries. In these it was ensured through legislation that the ruling upper class was only occupied by Europeans. The end of the colonial era led to massive emigration and deprived Africa of its educated upper class. There was a lack of suitable offspring in the African states.

To this day there is a problematic political situation in Africa. Democratic approaches have so far had little success. Military dictatorships and other centralized forms of government were able to prevail quickly again and again. While some governments do indeed seek to improve the situation generally, others are characterized by their corruption and bribery. The result is that people are reluctant to invest money in the country. The social injustice created in this way has a negative impact on the African economy. Not only are investments in the country avoided, but certain goods that are not available on the local market are also imported. This deprives the African economy of capital and weakens the local market. In Africa, due to its history, it was never possible for a healthy middle class to develop. If a country does not have a middle class that can save enough and thus invest in the country again, then there can be no economic development in this country. For more information about the continent of Africa, please check mathgeneral.com.