Tuesday, May 28, 2024

African Problems 5-28-24

Africa got a slow start in developing sustainable economic growth. Their participation in the Industrial Revolution in the 1800s was limited to providing raw materials to developed Western countries and that economic model has continued.  

Africa had been home to previous powerful ancient empires like Egypt and Ethiopia. The other African countries had their own Kingdoms, but the infrastructure improvements made by the European countries were not affordable to raw material providing countries.

Africa’s population was divided and spread out, living in villages without clean water or sanitation. Africa’s internation trade centers included mining areas where jobs were available and Trade and Government centers were located where ports and road systems already existed. These mining and trade centers had more infrastructure.

The villages had the Missionaries who brought in resources like schools, medical treatment, water wells and septic tank systems. Villages continued to build their own structures and provide their own food and irrigation systems.

Africa’s culture was influenced by Tribal Rules aimed at assigning responsibility to family members. If the father of the family died, the oldest son took responsibility for his mother and siblings. These rules continued to be followed.  This gave the governments a chance to focus on trade and economics unless violence broke out between political factions or droughts created famines. 

Africans continued their colorful cultural celebrations with drums and dance. Our familiarity with this was kept alive by National Geographic Magazine, news reals and tourism.

Current economic conditions finds African countries are suffering from Biden’s Inflation, higher energy costs and a declining global economy.

Of Africa’s 51 countries, 7 have Debt to GEP at 100% or above. Zimbabwe tops the list with a Debt to GDP at 284.9%. 7 countries have a Nominal GDP above $100B. Egypt tops the list with a Nominal GDP of $398B.

4 countries have populations above 100M. Nigeria tops the list with a population of 223.8M.

Most have large rural populations living in villages without clean water or sanitation. Most don’t have adequate roads or electricity. Jobs are scarce and living costs are high. Governments are continually distracted with fighting poverty and disease.

African countries continue to be sources of needed raw material including rare earth material needed in computer chips. China is active in African countries to secure supplies of rare earth material.

If Trump is elected in 2024, African countries could see a reduction in energy prices and lower inflation, but also lower Export dollars for those who provide crude oil.

Overall, for Africa it’s more of the same. Mining will continue to supply demand and Some countries could add low wage manufacturing to their list of exports.

African political destabilization has persisted as opposing factions have wasted time fighting each other.  European Colonization from 1884 to 1914 ended the Kingdoms. Ending this period introduced the battle for control between political factions until 1945 when decolonization began. The establishment of democracies with Presidents and Legislatures did not bring factions together. Now counties are breaking up as factions take control of pieces of these countries.   

Norb Leahy, Dunwoody GA Tea Party Leader

 

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