Let’s start with the terms of trade. The trade deals are
unfairly skewed against Africa. Africa is a net importer of many goods from the
world. What’s even laughable is that it imports the very things it produces but
in another form. For example, picture that the continent produces tea and
coffee, but again has to import the same tea and coffee in a refined expensive form.
It produces cotton, yet has to import expensive clothing
from the rest of the
world. We can therefore argue that the manufacturing sector in Africa is very
nascent, and would do with much more improvement. Even in agriculture, where
the continent should have a natural head start, the continent is still not able
to penetrate the rich developed western markets due to subsidies that the
Western countries advance to their farmers. A cow in the United States receives
more than $2 of subsidies per day, more than the poverty line in many African
countries. It’s clear that Africa exports raw and semi processed goods, only to
import expensive finished goods.
One area that the world leaders could help in is the provision
of affordable energy in Africa. A high energy cost is perhaps the single
biggest reason why there are not enough factories in the continent. During the
US- African leaders’ summit, the United States government promised to help
increase the electricity grid connection to the African countries, but this has
still not become a reality. In a nutshell then, even though the continent’s
leaders have much to do to ensure that Africa becomes a better place to do
business and is rich and prosperous, the outside world needs to help,
especially in ensure that Africa engages in trade terms that are fair and
reasonable.
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