The lack of diversification of African economies, often dependent on income from a single commodity, makes the continent vulnerable and at the mercy of the slightest external shocks.
African economic and global financing [Business]
For instance, the fall in oil prices on the world market has plunged the economies of Central Africa, into a deep recession over the past 5 years.
Cocoa price fluctuations are negatively being felt in Ivory Coast and Ghana.
The same is true for copper prices in Zambia or cobalt prices in the DRC.
Faced with the growing need for funds, many African countries have even sought the assistance of some international traders in some unusual deals. More and more African states are pledging in advance, the production of raw materials such as oil in exchange for fresh cash.
Chad and the Congo experimented at their own expense, before discovering that these traders, who generously lend money to these desperate states, had set up a strategy of which is not in their best interest.
Our Jean David-Mihamle gauges the views of economic intelligence specialist, Guy Gwet on the issue.