Current Date:

Thursday, 18 October 2018
 

Business Vision: African Economic Opportunities

Africa is one of the richest continents with 1.2 billion poorest people, the formula that challenged economists

, no one can interpret the reality and the fact of the deteriorated economic situation in most of African countries, some of African leaders attributed that to colonialism policies, while others shouldered the responsibilities to the bad governance.
Africa is the world's potential reserve, with different types of resources, which characterized the continent and drew the attention of global business communities, but the questions are: what is the economic volume of Africa? Why do Africans fail to address the challenges? And what are the opportunities.
Africa is the second largest continent, it is population represents one sixth of the world's total population, and 60% of its land valid for agriculture, beside other resources, so 11% of global oil is in Africa, also it has 6% of gas and 4% charcoal.
African government failed to exploit the above mentioned economic factors due to the lack of security, good governance, educational services, health care and corruption, but the strong will can overcome the challenges and moves things towards development.
The cooperation between China and Africa is a golden chance and precious opportunity to change Africa from less developing continent to a crucial economic block, the Forum on China African Cooperation FOCAC which was established in 2000 is considered as a good tool to promote Africa, it addresses, industry, trade, investment and infrastructure, in 2015, during Johannesburg summit China released US$ 60 billion to support 10 African development projects, again China has announced the same amount in Beijing 2018 summit, distributed as follows, US$ 15 billion as grants, interest free loans and concessional loans, US$ 20 billion for credit lines, US$ 10 billion as special development fund, US$ 5 billion for imports from Africa and US$ 10 for investment.
FOCAC answered the raised questions set plans and policies to utilize the fund according to African 5 regional project priorities, FOCAC has classified Africa into, East, West, North, and South and Central, this division facilitate the mission of companies to implement projects perfectly.
The future is for FOCAC, which is a combination of the second largest economy in the globe (China) with the world's potential reserve (Africa).