Unleashing Africa's Economic Potential: From Dark Continent to Bright Future

Central Idea: Africa has, for long, taken the tag of the Dark Continent, but the economic potential; behind that perceived darkness is too immense to ignore.

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Introduction

Africa has enormous economic potential, backed by its vast deposit of natural resources and a potentially virgin market that is unexploited.

From the different studies that have been on the continent's potential, natural resources like oil, minerals, fertile lands, and a vast blue economy place it strategically for spurring economic growth. The population is also fast-growing, with over 1.2 billion inhabitants.

Transition: To spur progress, Africa must stop looking abroad and establish mechanisms to exploit its colossal resource potential and human capital to grow.

Body

Africa has some of the most coveted minerals and resource deposits in the world, whose wealth can transform the continent if well used.

The Democratic Republic of Congo has huge deposits of diamonds and copper. Eighty-nine percent of the world's gold comes from Africa in countries like South Africa, Tanzania, and Ghana (Van Alstine, 2014). South Africa produces 92% of the world's platinum, among many other minerals in the continent.

River Congo, which stretches over 2500 kilometers, can wholly light Africa with green energy through hydro-powered electricity generation (Van Alstine, 2014).

Large water bodies like the Mediterranean surround the continent to the North, Indian Ocean to the East, and the Atlantic Ocean to the West, all of which can support a blue economy. There is also an impressive lacustrine ecosystem in the continent.

Transition: The resources in Africa are, in most cases, underutilized, and the continent's development has suffered a lag as a result.

Despite the substantial raw material output in Africa, the continent only commands 1.5% of the world's total manufacturing production (Calderon et al., 2020). This meager output profoundly affects the continent's balance of trade.

The low manufacturing potential of the continent leaves the continent with a trade deficit with its trading partners.

In 2015-217, Africa exported US$760 billion worth of goods to the rest of the world and imported $5,140 billion worth of goods from America alone (Calderon et al., 2020). This imbalance can be dealt with when manufacturing improves in Africa.

Transition: The continent should take cues from China to accelerate economic growth and turn potential into reality.

Africa's population should make ready labor and market for any trade and business in the continent.

The continent has a population almost similar to that of China.

The vast resources in Africa cannot even compare to what China has, but China's GDP is almost five times higher than that of Africa. Whereas Africa has a GDP of $2.6 trillion, China is almost hitting $14 trillion (Calderon et al., 2020). Africa has enough potential to match China's GDP and surpass it.

Transition: Investors have a golden chance to take up the opportunities gaping in Africa. They can utilize the resources and the labor and be part of the story of transforming the continent.

In order for the continent's economic success to come to fruition, proper policies must be put in place for the prudent management of resources. Further, investors should go into an environment that allows ease of doing business. In that path, Africa shall realize a great deal of economic success. It shall change from an economically potent content, to force in the global economy.

References

Calderon, C., Cantu, C., & Zeufack, A. G. (2020). Trade Integration, Export Patterns, and Growth in Sub-Saharan Africa.

Van Alstine, J. (2014). Transparency in resource governance: The pitfalls and potential of "new oil" in Sub-Saharan Africa. Global Environmental Politics, 14(1), 20-39.