_____________________________________________
7 Top Reasons Why Africa Is Still
Poor, 2019
“While $134B flows in each year,
predominantly in the form of loans, foreign investment and aid; $192B is taken
out, mainly in profits made by foreign companies, tax evasion and the costs of
adapting to climate change." - Health Poverty Action.
The presence of some of the world’s fastest growing economies in Africa
serves as fodder for the Africa rising narrative. A walk around capital cities
of Nigeria, Kenya, South Africa, Angola, and others, will put a stamp on the
discourse that Africa is rising at a significant rate. The crane-filled
skylines, construction of road networks and railway lines, multi-million dollar
mansions and business malls erupting across major towns and cities, and growing
technologies are just but a few indications of the continent’s ascent to
prosperity.
One
can only wonder why there is still a widening gap between the rich and the poor and why
Africa is still struggling with poverty despite the fact that it is home to a
major percentage of raw materials that are in hot demand around the globe.
During the recent World Economic Forum in Davos, African leaders argued that powering
Africa will answer the continent’s growth in future. According to them,
powering Africa will create jobs, cause industrialization and business
expansion.
Whereas
powering Africa would contribute a lot to growth on the continent, we argue
that for Africa to grow sustainably, it will need to pursue comprehensive
methodologies that address all the bottlenecks to development. We contend that
to understand what the areas for reform are, governments will have to first
understand the reasons why Africa has been held back for so long.
Here,
we have assorted the issues that Africa needs to pay attention to in order
to be at par with the rest of the world in terms of prosperity.
1) Civil Wars and Terrorism
The
argument that civil wars, like terrorism, contribute to poverty is a
no-brainer. Wars disorient people and leave them destitute. They also
disconnect businesses from their clients. Moreover, roads and communication
networks are destroyed or barred which further cripples these businesses.
Industries collapse, people loose jobs and investors lose confidence in the
affected country thus pushing the affected region down the economic slopes.
Then,
of course, there is the trail of deaths and scores of people left injured not
to mention the loss of property which adds to the increase in poverty levels in
areas marred by wars and terrorism.
According
to the 2015 Global Terrorism Index,
the cost of terrorism to the world was $52.9 billion in 2014. This is the
highest number since 2011. 32,000 people died due to terrorism acts in the same
year.
In
Nigeria, the Boko Haram insurgency has
led to over 100,000 deaths since it started its brutal operation six years
ago.the Boko Haram insurgency has
led to over 100,000 deaths since it started
These
terrorist acts have not only resulted in deaths and injuries but have also
affected the socio-economic divisions in the country.
Reports
from the oil producing country say that business activity in regions like Kano
had dropped by 80% by 2015.
Apart from business disruption, the revolt has caused sporadic migration,
abandonment of professions and jobs, discouraged foreign investment, food
scarcity and dehumanized people. All these factors put together will attract
poverty in the region.
Nigeria,
which became Africa’s largest economy in 2014 is experiencing economic
challenges with World Bank’s Global Economic
Prospects 2016 predicting that the country’s economy will
continue to slow down.
With
such high economic impacts and deaths, poverty is inevitable.
2) The Unending Corruption
Dubbed
‘Kitu kidogo’ or ‘chai’ (loosely translated as ‘something small’ or ‘tea’)
in Kenya, corruption
has taken root in most African
countries.
This
has contributed to the plight of Africa today. Senior leaders in government and
private sectors alike have resorted to taking bribes.
A
survey by the Transparency International(TI) indicated
that most African governments are not able to meet their citizen’s expectations
due to rampant corruption.
The
respondents said that corruption in the region was increasing despite the
campaigns and activism by civil society and the population. The police were identified as the
most corrupt group across the region.
At
least in every news item, one story covered is about how a high-ranking
official is under investigations over
corruption allegations. While this is good news to many, the laws on
corruption are lenient allowing those caught in the act an easy passage.
According
to Control Risks’ annual survey ‘International attitudes towards corruption’,
Africa is increasingly aware of the corruption problem and even the importance
of managing it within the region.Africa is increasingly aware of the corruption
problem and even the importance of managing it within the region. While the
culture is strong, what is not is the political will and legislative framework
to deal with corrupt cases especially those involving senior political leaders.
In
an interview with Mark Doyle
of BBC President Ellen Johnson-Sirleaf of Liberia revealed that
she underestimated the level of corruption in her government when she took the
leadership position.
"Maybe
I should have sacked the whole government when I came to power," she said.
"Africa is not poor," President Johnson-Sirleaf told the reporter,
"it is poorly managed.""Africa is not poor," President
Johnson-Sirleaf told the reporter, "it is poorly managed."
In
some instances, acts of corruption have been used to fuel civil wars and terrorism.
3) Education and the knowledge gap
Even
up to today, some African households cannot afford basic education for
their children. Although some governments in the region have taken up the
matter of basic education provision as a government project, many areas lack
schools and even where schools are, they are sparsely located posing a
challenge to the young children who would rather help at home than make the
long walk to school.
Inadequate skills and knowledge cripples
the economy as there is no skilled labor to drive the nation.
"[The]
education that Africa needs is one that is skills-based, technologically
grounded and globally competitive," Said Adejumobi, head of the governance
and public administration division at the United Nations Economic Commission
for Africa, while speaking to CNN. education that
Africa needs is one that is skills-based, technologically grounded and globally
competitive.
For
Africa to be competitive, there is a need to invest in reinventing its
education and research systems.
A
majority of African youth are not employed today due to inadequacy in education and
technical skills. Corruption in form of nepotism has also affected the rate of
employment on the continent.
You
can find more information about education in Africa and its challenges by
reading some of our articles below.
4) Health and poverty
Health
and poverty are interconnected. When a continent is not able to create quality
health infrastructure and system for its own people, it risks falling into a
trap where the economy remains stagnated.
Poverty
is both a cause and a consequence of poor health. Poor living conditions
increases the chances of poor health. In turn, poor health entraps communities
in undying poverty.
One
of the consequences of diseases is that it depletes individuals, households and
communities’ energy to work to build their lives and that of the society. With
less individuals working to make their lives better, poverty creeps and
entrenches its roots.
WHO
reports that approximately 1.2 billion people
in the world live in extreme poverty-surviving on less than one dollar per day.
Diseases
especially communicable ones spread more rapidly in communities that are poor
and do not have access to basic amenities. Take for example the spread of
Malaria which can easily be managed through simple yet vital but scarce
utilities like mosquito nets and repellents.
HIV/AIDS, cancer
among other diseases have also contributed to increased poverty levels in
Africa. These diseases, apart from ‘decapitating’ the victims, leave families
and communities in debt which further worsens their ability to sustain
themselves.
5) Geographically Disadvantaged
In
this case, nothing much can be done. Being placed in a geographically
disadvantaged location only calls for innovative ideas to utilize the available
resources to advance lives.
A
significant number of African countries suffer because they are landlocked-
geographically unlucky.
A
country like Switzerland is landlocked but it is surrounded by stable
economies, creating a platform for trade. On the other hand, most landlocked countries in
Africa are surrounded by unstable and conflict-filled
countries, most landlocked countries in
Africa are surrounded by unstable and conflict-filled
countries. These factors injure the economy of the landlocked countries.
Uganda, a landlocked country bordered by South Sudan and Democratic Republic of
Congo stands as a good example. These neighbors feature civil wars all year.
Although
Africa boasts of indigenous and numerous resources, they are poorly distributed among
countries and within states/regions in those countries. Despite that,
governments have not adopted strategic ways to redistribute such wealth to the
citizens.
Wealth
distribution is an issue, but what is even more disturbing is how great and
promising resources like oil and precious minerals are exploited by foreign
investors and big corporations which pay little or no taxes to the countries in
which they operate. Such practices have left Africa twirling in poverty.
6) International Aid
In
the recent past African leaders have been heard arguing that International Aid
has curtailed Africa’s growth efforts. During the recent fourth World
Government Summit in Dubai, President Paul Kagame of Rwanda said
that donor support should not be relied on forever but instead be used to build
institutions and the economy.
“Our
vision is to make sure we are able to stand on our own feet and develop our
country, attract investment and do business. There is no reason why we can’t
grow intra-African Trade to the levels we see in America or Europe. What is
good is not necessarily being small but good management of whatever you have,
small or big,” he said."There is no reason why we can’t grow intra-African
Trade to the levels we see in America or Europe."
Whereas,
some non-governmental organizations have helped Africa through support in
health, education, governance and in other sectors, some firms have been
accused of using stories of desperate Africans to advance their own selfish
goals.
The Kibera slum in Kenya is one good example.
Kibera, the largest slum in Nairobi and second largest urban slum in Africa is
located just 5 kilometers (3.1miles) from the capital, Nairobi. The slum is filled with a sea
of NGO’s which have not done so much for residents who continue
to scavenge for a living in these tough economic times.
Another
outlook into Africa’s failing economy is the loss that Africa is experiencing
as the foreign aid-giving countries suck Africa dry of its
resources. The outflow costs to Africa surpass the inflowsThe
outflow costs to Africa surpass the inflows that get to the continent in form
of aid. Health Poverty Action highlights that Africans are losing almost six
and a half times what their countries receive in aid each year.
Video
source: Health Poverty Action
“While
$134 billion flows into the continent each year, predominantly in the form of
loans, foreign investment and aid; $192 billion is taken out, mainly in profits
made by foreign companies, tax dodging and the costs of adapting to climate
change. The result is that Africa suffers a net loss of $58 billion a year. As
such, the idea that we are aiding Africa is flawed; it is Africa that is aiding
the rest of the world,” the report argues.
Africa
is also to blame when it comes to misappropriation of aid funds and
corruption among the officials.
7) Unfair Trade Policies
Introducing
fair trade policies for African countries to trade with nations abroad will grow
Africa’s economy much faster than aid would. Unfair trade strategies have
rubbished Africa’s growth exertions.
The
US, the European Union are protecting key industries that Africa could compete
with like agriculture, thus it has become more difficult to trade in this
sector.
Poverties Organization argues that
instead of the international communities protecting their benefits, they should
give preferential market conditions to poor countries for export or
agricultural development. This, ‘Poverties’ adds would provide them (African
nations) a path to fast development, and hopefully diffuse the benefits to
inner regions. This will have a direct effect in the internal market, help it
to thrive and alleviate poverty in African countries that are landlocked.
The
discourse on poverty in Africa is like a jig-saw puzzle: Africa as a region is
rich but her people are poor.
Although
Africa is rising, poverty is curtailing the continent’s growth efforts. As a
region, Africa needs to address the negligence of sound economic policies.
Corruption, selfish personal interests, thirst for power, religious and ethnic
differences are clogging the pipeline within which development would have
flowed.
Governments,
regional communities and private sector should develop effective strategies
based on regional needs and partner with like-minded corporations local or
foreign to drive Africa’s Development wheel forward.
Africa
has the potential to rise above any other continent if only it laid emphasis on
shunning corruption, providing basic amenities including water, food, shelter,
energy, education and security for all. If we look keenly at what is coming to
Africa in terms of aid and what is going out of Africa in terms of profits, tax
evasion and debt payments, Africa can be summed as wealthy. In fact, Africa is
financing other continents.
Africa
is a wealthy continent. Let us all strive to grow the region to live its name,
‘Africa a land of wealth!’.
Comments
Post a Comment