Economic Challenges

Larry Elliott writes about the continents economic challenges:

"...At the level of the firm, productivity tends to be weak because of a lack of investment in both physical and human capital. In countries such as Ghana, there is evidence of micro-financing initiatives to provide seed-corn capital for individual traders, but it is still early days. At the second level, governments need to think strategically about what their priorities are. The drive for universal primary education is welcome but there has been no similar expansion of secondary, let alone tertiary, education. The regional challenge is pretty straightforward. Africa needs three or four powerhouses - one in each part of the continent - to drag the rest along. South Africa, Nigeria and Kenya are the potential hubs for regional markets in which countries can exploit economies of scale and the potential to trade. Trade barriers within Africa are as serious an impediment to development as are unfair global trade rules..."