Africa, despite its large population, remains a small player in the global economy, with a combined economy of less than 3% of the world economy. Apexnewsgh reports
The continent’s political heterogeneity makes it difficult to stand united on contentious issues, and most African countries are not part of global value chains. However, external economic challenges and tensions affect them deeply.
A new era of competition between the US and China does not augur well for the continent, given the experience of proxy wars in the Horn of Africa and Angola during the Cold War.
China’s growing economic influence in Africa, already the world’s factory and largest trader, is unmatched by the US. China’s engagement in Africa is broad and deep, and the US should find ways to collaborate rather than compete with China to maintain its influence on the continent.
The African Growth and Opportunity Act (Agoa) trade model, with its low levels of trade reciprocity, is well-suited to Africa’s needs. The US should use Agoa to boost Africa’s exports, not as a stick for economic coercion to achieve political objectives.
Africa’s ruling elites are looking towards China’s autocratic development model as a means to reduce poverty, as democracy and the free market haven’t delivered development.
The youth bulge is expanding, with limited prospects for formal employment, a healthy life, or meaningful education.
Source: Apexnewsgh.com/Ghana
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