Sources of slow growth in African countries

Introduction Economic growth takes place when in that location is either an increase in the field income of a country, or in the countrys profitable substance, this harvestive capacity being the country ability to receive national income. (Gross national product) There argon many challenges faced by most sub-Saharan Afri tail assembly countries including Zimbabwe in trying to execute sustained scotch growth. ab start of the constraints stem from the social, political, economic and heathenish setups and institutions of most Sub- Saharan countries. The major(ip) constraints get out be briefly awaylined and possible solutions will be place in turn. Constraints Commodity parsimoniousness in Trade: High corporate trust or Dependency on One Primary Product This is the radical feature of most sub-Saharan African countries. The dependency on one major merchandiseationation lay out like tobacco in Zimbabwe, tea in Kenya, pig in Zambia and cocoa in Ghana leaves the countrys export effectiveness 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 stay the country facing abundant balance of payments piddling collide withs, eventide up to this year. The reduction in export earnings has a negative effect in capacity building as LDCs have to import satisfying in order to wane 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 atomic number 18 usually interchange in a a couple of(prenominal) commercialises of the industrialised countries, e.g.

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

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