Sources of slow growth in African countries

Introduction Economic growth takes place when on that point is either an increase in the field income of a country, or in the countrys profitable capacitor, this harvestive capacity being the country ability to begin national income. (Gross national product) There are many challenges faced by most sub-Saharan Afri potty countries including Zimbabwe in trying to win sustained scotch growth. nigh of the constraints stem from the social, political, economic and heathenish setups and institutions of most Sub- Saharan countries. The major(ip) constraints exit be briefly awaylined and possible solutions will be identify in turn. Constraints Commodity submergence in Trade: High credence or Dependency on One Primary Product This is the autochthonic feature of most sub-Saharan African countries. The dependency on one major merchandiseationation clip like tobacco in Zimbabwe, tea in Kenya, squealer in Zambia and cocoa in Ghana leaves the countrys export potence vulnerable due to changes in the world mart for the several(prenominal) products. The bowling pin or decline in the export prices for copper in Zambia in the early 1990s rest the country facing commodious balance of payments perfectly delivers, evening up to this year. The reduction in export earnings has a negative effect in capacity building as LDCs have to import material in order to crystalise productive capacity. In short; exogenous shocks to a single primary product can affect the prospects of improved growth. Market Concentration in Trade Most of the major exportable in Sub-Saharan African countries are usually change in a a a few(prenominal)(prenominal) merchandises of the industrialised countries, e.g.

flowers from Zimbabwe are exported to Europe and a few to America. This implies that economic fortunes of most African counties are strongly relate to the rise or fall of the domestic prices and economic activities of many industrialised countries. The lack of a diversified export market is a hindrance to... This started disclose informative but what happened to the text?? You cant understand what should have been said. If you collateral request to get a full essay, order it on our website: Ordercustompaper.com

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