Perhaps, it is an irony that Africa is both a
blessing and burden to the world. Africa sure has its shortcomings, but it is
not all that gloomy as it were given recent available statistics. Africa is
expected to see a recovery in Gross Domestic Product (GDP) growth from its
present 3.0 per cent to 3.5 per cent in 2018. Africa's GDP will further grow to
3.7 per cent in 2019, according to the 2018 edition of the World Economic
Situation and Prospects report (WESP2018).
Conversely, Africa with the staggering
statistics of migrants to other parts of the world is no doubt a burden to the
world. A larger percentage of migrant crisis and conflicts between nations of
the world is partly causes by Africa and other regions of the world that are
yet to find a lasting solution to their burgeoning population vis-Ã -vis
economic prosperity.
But, why the large-scale exodus of people?
The factors pushing people to leave sub-Saharan Africa – and the paths they
take to arrive at their destinations – vary from country to country and
individual to individual
The most disturbing part of the whole
scenario is that this modern day migration similar to the slave trade era when
our forefathers were ferried as labourers in a plantation field is on a
voluntary level and it is more or less appearing that many people are going on
a mission of no return.
The notoriety of the slave route in Libya
where thousands of Africans are taking to pass through the Mediterranean Sea as
well as the horrendous loss of human lives on that route is better imagined
than felt.
Given the huge loss of lives that now
characterize the migration crisis, it behooves on all the stakeholders to come
up with a better way of upturning the push factor which is the promise of
economic prosperity that made people to be so desperate to cross to the land of
no return.
The bottom line however is that, Africa which
is the world’s second largest and second most populous continent with the
population of over 1.3 billion as at June 2019, worldwide which is equivalent
to 16.64% of the world population, has what it takes to feed her population and
perhaps the rest of the world, especially with its around 600 million
uncultivated arable land or roughly 60% of global total.
As a matter of fact, agriculture and food
production especially through the value chains exploration still holds the key
to economic prosperity of the African continent. To say the least, Africa’s
huge population is the reason bigger manufacturing countries of the world such
as China, US, Germany India, South Korea and United kingdom are scrambling to
take advantage of the African large market.
A 2019 Nigeria Consumer report by Coronation
Merchant Bank tagged “Power to the price point” for instance is very
instructive on how Africa can turn her agricultural potentials and huge
population for prosperity through the empowerment of small holder farmers as
well as the promotion of the informal sector by boosting the SMEs.
The report which consciously studied the
price movement of quoted food and home personal care companies relying on the
data that with Nigeria’s population increase of 4.6% per annum such companies
ought to enjoy steady growth, but the reverse was the case.
Coronation Merchant Bank which set up a model
household on an average salary of N 35,000-N40,000 typical of what is being
paid to tens of thousands of Nigeria and sent them for shopping found out that
the model household members came back with packaged products that are not
listed with reasonable price differential to the bigger and perhaps global
brands being promoted by the economically prosperous nations, which means
Nigerians are beginning to consume locally produced goods designed to rival the
big brands which are listed.
The result of this research is sending a
strong signal to African nations and its leaders that there is a new potential
economic prosperity magic only if we take a closer scrutiny at it. A recent
report from Kenya for instance indicated that multinational companies are
leaving Kenya enmass. Most of them blamed the influx of cheap imports into the
local market for their exit. The situation is similar in other African
countries like Nigeria.
What then should African leaders do in the
light of the Coronation merchant bank research of power to the price point?
Although no countries of the world can exist in isolation in terms of trade.
Africa mostly export our raw material such as crude to other parts of the world,
but the bottom line is to concentrate importations on goods of technical and
high technological nature that perhaps cannot be easily produced at home,
instead of continuing to act as dumping ground for substandard importation.
Thus, Instead of allowing the importation of
cheap products from large manufacturing companies of the world like China to
flood the market thereby stifling the growth of the multinationals in her
economy, African continent and her leaders should rather promote the growth of
emerging SMEs and agro processing companies which are on the rise. The main
issue will then be to standardise.
It is believed that through this simple
economic logic, Africa can be able to provide employment for her teeming
population daring the odds daily by risking their lives to cross the deadly
border..
Reports have it that Africa food market alone
could create 1 trillion dollars opportunities by the year 2030 if we can expand
their access to capital, electricity, better technology and irrigated land to
grow high value nutritious foods. Why then do we expose our citizens to danger
in different parts of the world with this huge potential on our hands?
Already, some domestic African global brands
are giving the big multinational companies of the world a run for their
investments and gradually pushing them out of the market. Some of the local
companies identified include South Africa-based mobile telecommunications
company, MTN, Kenyan FMCG manufacturer Bidco, Angolan beverage company
Refriango, Moroccan bank, Dangote brand in Nigeria among others.
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