The economy of a region is greatly determined by factors that are intertwined in the community set up. This beliefs and values that may influence the regions economy is focused on the culture, geographical setting as well as the economy of the area. Economic development in Africa is highly based on its strength in its economy, culture, as well as the geographic region with encloses the community and it’s environ. Geographical set up may be in a position to support agriculture, mining process, as well as other trade off opportunity. In addition, the cultural setting in the community that entails the values, believes and behavior moulds the people’s character towards enhancing the economy of the region. More over, the living standards and the strength of a region will focus on the economical standard of a place which is boosted by the by the various activity in the region that is in a position to support the economy. Features like increase in gross domestic product in relation to increase in trade in the local and the global market, development of improved geographical function as well as the authority will to execute the development. Africa’s developmental factor is enhanced by query on the increasing role influence by the large regions hence an opportunity to diversify products.
In order for Africa to develop economically there should be merging of various sector with the abroad advanced countries like China, Brazil, and India , that impacts on raw materials as well as the commodities. Through such regional development, countries like South Africa transform in all sectors of financial flow and trade development via infrastructure development project, technological transfer, as well as the knowledge transfer as projected in the Economic Development Report 2010(EDAR’10). The development of long standing steps on investment and trade flow of exports like minerals, farm produce, ores, manufactured goods importation, as well as the crude oil export. A change of trend in Africa where traditional method of trade is being valued should really impacts’ on the dependency by traditional on exports in relation to the added undervaluation products ( Specter M., 2010.p.35).
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Through the cooperation like the South to South corporation has led to inclusion of Africa in the developmental Teams, in addition to the elaborate corporation like, China –Africa Corporation (FOCAC). More over, there are extra linking institutions in Africa like the India, Brazil, Turkey, Republic of Korea, in coordination to the strategic intercontinental partnership. The basic important views are based on the collaboration to enhance official products movement as well as the investment movement in coordination to trade veterans’. In consideration to the investment and financial movement in Africa, increases it’s merchandised capability in trade via various non Africa developing regions impacting on increase by $ 97 billion in 2004 from US$ 34 billion by 1995 and consequently leaped to$283billion in 2008 (John W & Christian W. 2006. P23).
The foreighn direct investment
In relation to the investment conscious step taken by African nation, a positive impact on increase towards the green field foreign direct investment (FDI) schemes initiated by the investors. The initiation of foreign investors that lead to investment office, manufacturing, as well as the parallel company from previous present organization, come into increasing by 184 in 2008 from 52 in 2004. Therefore, contrary to the data official scale flow of increasing developing countries, the estimate is analyzed to be US$2.8 billion as per 2006 reflection due to incorporation of China. As a result the African aid increased by 83% in relation to allegiance by the by the China government in 2009 to double its assistance (Timothy T.2010.p.20)
In coordination to the foreign investors trade with the African, there was positive impact towards the development of total trade hence surpassing total trade with the European Union as well as its other trading partners. The movement of assistance progress (ODA) from foreign investors is directed to the infrastructure department as well as the production department of in the Africa Financial System. As a result, there is development of the resources achievable in the area in relation to the diversified in fiscal option in Africa. The reflection is seen through local donors giving to ODA movement about 22% to infrastructure as well as production department. While focusing on the scale development, China has been the best supporter of bilateral trade to Africa as projected by the support by Chinese, to African infrastructure in the sub Saharan Africa. This led to increase in trade in Africa to all the investors in the corporation.
In the long-term economic progress plan, Africa should be in a position to offer assertive in negotiation with foreign investors to air the domestic concern. Through well elaborate of challenges by the Africa authority to the foreign investors helps motivation of education policy that promotes effective global interaction. Therefore, the global corporation will help the African authority develop diverse products as well as complex products. More over, support by the foreign investors helps increase bond above extractive department, developing technology transfer, as well as learning. Development of loans from foreign country who partners has led to increase ease in accessing finances for projects promoting local capacity to repay.
Trade of South Africa
Gains achieved from such corporation should be evenly distributed to support export and imports at available rate to the bilateral traders. Africa should try to coordinate as well as manage support from the foreign investors hence minimizing cost of transaction as well as ensuring efficient progressive outcomes. Forums like United Nation Economic in relation to Social Council should initiate national experience as related to aid utilization. Development approach towards associating direct investment by foreign should be associated by the local authority hence increasing target on attraction of Southern FDI in relation to domestic economies hence creating job and causing rational integration.
The presence of a variety of tribe as well as the races provides an improved system of hospitality, which helps the investors to rely on the country due to presence of related race, which makes them feel secure. An example of South Africa promotes the friendliness in the country due to divergent races in the country. The region being raged or flat in topography reflects the culture of the region as pastoralist or agriculturalist hence helping the country to know the main area to bank on. The culture of some African setting being nomadic is determined by the weather of the region, that is if it is harsh as most of sub Saharan or if it is fair for agricultural settlement. In such cases, the government tries to develop ways of supporting the divergent sectors.
The African authority has been in constant consultation with its foreign investors to try to market their local animal and poultry products at affordable rate. The packed meat product from various animals and poultry are exported to the relevant countries hence fetching enough income into the countries, which boost the economy. This is reflected by the masaai community who are majorly pastoralist and heavily depends on the animal’s product for survival (Timothy T.2010. p.30). In relation to pastoralist in Sub Saharan country that faces desert or semi desert highly depend on export of animal products to the investment.
Alternatively, the few countries in tropical rain region as well as the equatorial region heavily depends on agriculture for survival hence require the government intervention through corporation which support them from harsh weather encroachment. Organization such as IFAD has constantly been targeting how to help the African authority to develop a mechanism towards boosting their production for commercial and local consumption. Therefore, the locals are advised by the concerned authority not to depend on traditional culture of growing agricultural products but use intensified tools towards promotion of the economy. Through the government, and investors concern in helping the citizens purchasing intensified machines towards developing a culture of production that satisfy the economy.
In the export-oriented crops, the government should involve investors through privatizing some of the local industry that support the export crop, to help export highly graded products to the foreign country hence earning foreign income. Initiation of growing of diversified types of crops by the local African farmers as well as production of drought resistance crops will help the economy of a country to be stabilized. This is realized when the African countries has more than enough to feed its citizen hence eliminating the dependency on the foreign countries for help through loans and grants. A healthy nation ensures that the is readily available workforce which the investors may require.
How to increase economic development in Africa
African countries should developed an evolutionary modern learning technique which may be as a result of the ancient learning culture, to help impact its work force with the right skills towards development. As a result, the African countries will be in a position to export human skilled workforce that help boost the economy via the remitted money back home to their family or investment. In relation to the economy motivation, the local diversity in heritage and the food they prepare should be a tourist attraction target. In coordination with the government, the authority can market its heritage to the foreign and local area to create awareness hence in the end the tourist both at global standard and local level contribute to the economy when they visit various site with cultural values (Robert P,2010, p.20).
Some cultures promote social stratified system, which gives the class of each race as well as the social interaction aspect. The cast system in some area may hinder economical development in different region as compared to the development part of it hence the African authority should provide a system that entails all the levels without discrimination via development of policy friendly measures. Therefore, color and class would be a concern.
The reflection of contemporary Africa should be seen in human as well as natural resources despite the fact that it is engulfed in political, social and economic challenges. The African authorities are trying to develop policy as well as programs that help to unleash the regions potential towards contributing towards global economy and solving of environmental problems. In consideration to the depletion of plant as well as animal species in the west, the continent should develop ways to preserve abundant resources for the purpose of tourist attraction and future investors banking. The region has been greatly influenced by external influence whereby some of the post colonialist extracted many resources that lead to depletion of a big extends. Extraction of timber in Gabon has lead to depletion of some species.
The presence of minerals like Gold, Diamond , copper ,Tanzanite as well as other important mineral has lead to investment being heavily achieved on various cycles (Robert P,2010.p. 42).
The development of well-developed structures has led to Africa economy not being affected by the global crisis as it financial basis was not heavily depended on foreign lending. This was because of the authority concerned creating avenues for the progress in economy. The marketing of African strength led to investors encroaching in the potential areas as demanded by the agreement by the authority. In addition, well-developed infrastructure funded by the foreign investors led to reliability in investing strategy, which would as a result impact on positive development.