THE African economy it is guided by the exploration of natural resources such as oil, gas and minerals such as gold and diamonds.
The continent, however, is the poorest in the world, a result of colonial and neo-colonial exploitation.
Agriculture, tourism, manufacturing and services are still poorly practiced in most African nations. The same happens with the transport and communication sectors, whose expansion is still limited.
In most of the 54 African countries, the economy is directly impacted by extreme poverty, food crisis, administrative mistakes, high inflation, debt and wars.
Economic growth
The African economy experienced unprecedented growth in the first two decades of the 21st century.
With the increased demand for oil, natural gas and food, the continent benefited from the increase in prices.
The external debt forgiveness, in 2005, carried out for humanitarian reasons to 14 African countries, also had a positive effect in the region.
ores
Countries like Tanzania have registered growth rates of 6% a year, since 2006, thanks to the increase in the price of gold on the international market.
In Boston, growth is 5% per year, due to diamond reserves. The country allocates most of its resources to finance, free of charge, primary education.
Oil and Gas
The main oil producers on the continent are: Algeria, Libya, Egypt, Nigeria, Equatorial Guinea, Gabon and Congo-Brazzaville, Angola. Sudan, Mauritania, São Tomé and Príncipe and Chad are emerging as new producers.
Africa has 10% of the world's oil reserves and 8% of gas reserves.
Tourism
In countries of the North Africa, like Egypt, Morocco and Tunisia, tourism plays an important role in the economy. This activity is also an important source of income for Cape Verde and most coastal countries in both the Atlantic and Indian Oceans.
Kenya and South Africa's nature parks attract tourists interested in seeing the great wildlife. Hunting, although controversial, is responsible for the income of these countries as well.
According to data prepared by the UN, tourism in Africa, from 2011 to 2014, represented around 8.5% of GDP and generated 2.1 million jobs.
It should be noted that women occupy a third of these jobs. Since 1996, tourism in Africa has grown at a rate of 9% per year.
Agriculture
Agriculture in Africa is the economic activity that occupies most of the population. Kenya has been standing out as a reference country in organic agriculture.
Ethiopia is the fifth largest coffee exporter in the world and has grown at 6% a year since 2006, thanks to demand from countries like India.
Sub-Saharan countries even invest in partnerships that allow them to solve the region's water shortages so that they can plant with as little liquid as possible. They produce corn, cassava, bananas and beans.
On the other hand, Brazilian companies are occupying the lands of Angola, Mozambique and Sudan, promoting agriculture.
Through diplomatic agreements and Embrapa (Brazilian Agricultural Research Corporation), Brazil helps Angolans to plant and be self-sufficient in food production.
Despite growth, rising cereal prices and agricultural modernization, in 2012, FAO did A warning: 28 African countries would still need international food aid to avoid suffering from the hunger.
Foreign investment
THE China it was the country that most invested in the African continent in the first decades of the 21st century. The Chinese formed partnerships and now work with oil, civil construction and telecommunications companies. There are more than 10,000 companies from China doing business in Africa.
However, the Chinese bring part of the workforce to these projects and it is estimated that there are 100,000 Chinese working there.
Despite representing only 3% of the volume of trade with China, Africa is a strategic continent for the Asian giant. The goals are not just economic, but diplomatic, as China seeks allies to:
- counterbalance American influence in the world;
- prevent Japan from winning votes from African countries to be elected permanent member of the UN Security Council;
- exclude any international recognition to Taiwan.
Problems
Despite the optimistic data, there is much to be done in the continent that still suffers from unstable or undemocratic political regimes.
2016 was a difficult year for African economies, with the fall in the price of raw materials. Nigeria lost its position as the continent's first economy and went into recession.
THE South Africa it narrowly escaped the devaluation of its currency and the validity of the CFA Franc, used by 12 countries on the continent, was questioned.
The continent still suffers from lack of security and infrastructure that can compromise its growth.
It is important to remember that the thirty countries with the lowest HDI in the world are in Africa.
Illnesses
Another negative factor for the economy of African nations is the high number of epidemics. Today, HIV is a reality of Sub-Saharan Africa, raising expenses and killing the economically active population.
In West Africa, the Ebola epidemic was responsible for the 70% drop in tourism incomes in Liberia and Senegal.