Africa is still experiencing challenges that defines its developmental course in future despite having a great fortune in the shape of natural resources and human capital. Many of the African countries still have a long way to go before realizing the dream of sustainable economic growth while being victim of ‘resource curse’. Speaking of Africa’s potential, it is predicated intricacies such as political instability, economic fluctuations, influence from outside forces and climate change which are hampering the progress.
The major cause of unpredictability of the future development of Africa is political instability.
However, there also remains opportunity for more creation, development, and advancement. With the global attention shifting to Africa, it is important to understand the causes of this uncertainty, that lies ahead, and what among possible steps can pave the way to sustained development.
However, I believe that the major cause of unpredictability of the future development of Africa is political instability. The problem of governance has plagued many African countries through corruption, lack of democracy and authoritarian rule. Political instability leads to economic uncertainty and decline of foreign investments. Military takeovers and rebellions, social turmoil and political instability challenges the DNA of development affecting regions like Sahel, Central Africa and parts of East Africa.
Also, the problems of corruption, vague authority of the government in many countries and no or low standards of accountability and transparency prevent the proper adherence to development policies. Inefficiency and instability of institutions contribute negatively to inequalities and poverty, so several African countries are in a vulnerable state.
But the situation is gradually improving. Several countries such as Ghana, Botswana and Namibia within a similar timeframe have also shown economic growth. These nations have proved that the African countries can set sustainable indices for development with good leadership and political will. However, the question is how other countries can follow these successes and manage to avoid the political barriers which hinder growth.
Africa is an indebted economy which makes it prone to fluctuating global market prices since most of its businesses and revenues originate from raw material exports. Oil, minerals, agricultural produce can hugely influence the national economy of a country. Each time the prices go down, the exporting countries experience slow growth, which means less jobs, fewer services, and less development initiatives.
While Africa joined the global markets, its integration has normally been in the form of providing natural resources.
Moreover, while Africa joined the global markets, its integration has normally been in the form of providing natural resources. Hence, it is susceptible to the so-called resource curse.
Another problem of high economic risk relates to foreign debt. African governments have taken loans principally to finance infrastructure projects but the capacity to repay such debts is unclear. Debt crises, as in the context of Zambia and others, are perceived with certain sustainability of economic growth. However, many African countries continue to depend on donor funding and other external financing sources for the continuity of growth leading to skewed external orientation. This makes African economies even more dependent on financial resources from the developed world and political changes in donor nations.
However, Africa’s economy has potential for growth among countries facing the issues. The African Continental Free Trade Area (ACFTA) that was signed in 2021 offers an avenue to increase trade within the region, development of the African products and less reliance on exports to other markets.
ACFTA can transform the continent into a single market to help improve the continent’s bargaining power on the international market. For this opportunity to be materialize, however, the African countries must overcome the challenges to intra-African trade, including inadequate communication infrastructure, policy incoherencies, and political turbulence.
Many African countries continue to depend on donor funding and other external financing sources.
International environment is another factor that is greatly influencing the level of development uncertainty. Climate change is making many of these problems worse, especially hunger, water scarcity, and forced migration across Africa. Global warming or climate change characterized by increased temperatures, unpredictable rainfall and increased incidences of natural disasters negatively impacts crop production, a critical element of many African economies. For instance, Horn of Africa is evident to have had extreme dry spell in the past years which resulted to famine and migration of people.
Global warming, pollution and depletion of natural resources, continued land degradation, deforestation and desertification are on the rise in some parts of Africa. For instance, the issue of desertification affects highly the Sahel region, this has culminated to competition for resources like water and fertile land. At the same time, accelerated population growth rates are exerting more stress on already stretched ecosystems.
However, Africa also has brighter prospects like becoming a leader in renewable energy and thus developing sustainable electricity supply. With abundant resources in both solar and wind power, the continent could use technology to meet its energy needs as well as to assist in trying to curb climate change. Funds in renewable energy and integrated farming systems also have potential for both embracing environment and enjoying economic development as well as enhanced employment opportunities for the poor in rural areas.
However, youth unemployment is a huge challenge, meaning that millions of young people enter job markets which limited job openings. Thus, Africa is facing social unrest, migration, youth hopelessness and more instability.
This comes at a time when African population is relatively young who can boost innovation and development. New technology centers in the cities such as Lagos, Nairobi and Cape Town prove that Africa’s youth can support technological development and new sources of income. But there is a need for governments and the private sector to invest in education, vocational training and job creation programs to maximize the results across Africa.
Democracy along political reforms that enhance openness and accountability are important for establishing state structures which are favorable to investment and development.
Africa’s development uncertainty is not part of the plan, it should not be seen as a fait accompli or an irreversible course of events. Achieving the impossible is often possible if one knows and understands what various policies, strategies, and investments are required to really make a difference.
Democracy along political reforms that enhance openness and accountability are important for establishing state structures which are favorable to investment and development. Emphasis should be placed on aggressive diversification of the economies, departing from the dependence on raw material and developing technology, manufacturing and services sectors which will translate to reduced economic insecurity and growth.
One has to embrace the fact that the climate change issue can only be solved through investments in renewables and sustainable farming. Similarly, provision of job opportunities to the youth is required to ensure social justice. Measures such as ACFTA may accordingly catalyze economic openness and improve the ability of the African states to adapt to external environment fluctuations.
Dr Muhammad Munir is a renowned scholar who has 26 years of experience in research, academic management, and teaching at various leading Think Tanks and Universities. He holds a PhD degree from the Department of Defence and Strategic Studies (DSS), Quaid-i-Azam University, Islamabad.