THE ECONOMY OF AFRICA

THE ECONOMY OF AFRICA.

1.                                                                                                                                                                                         

The above image illustrates a market . A market is the way in which an economic activity is organised between buyers and sellers through their behavior and interaction with one another. Buyers, as a group, determine the overall demand for particular products at various prices while sellers, as a group , determine the supply of a particular product at various prices. This activity contributes largely to economic growth since the buyers gain satisfaction and the sellers gain income which improves their standards of living. In this way, the economy gains revenue through the taxes collected from the income earners.

2.

The above image shows how some of the African economies have managed to increase their GDP(Gross Domestic Product) over the years.  GDP of the above countries increased due to high investment rate and  low level of inflation among many others.The bars in the image show to what percentages these countries have managed to increase their GDP'S. GDP is regarded as one of the primary indicators  used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy.

3.

The above image illustrates a sample of a few African countries  in worst economic situations and promising or good economic situations. Some of the causes of poor economic situations in Africa are, poor utilization of resources, wars, high inflation, low level of investment, poor infrastructure and many others. Africa as a continent has managed redeem itself by encouraging proper allocation  and utilization of resources, attracting more investors, good leadership  in country's such as Rwanda whose economy has emerged due to its good leadership. 

4.

 The Africa industry sector holds the key for the region's growth. Mauritius is the best example of how an African country's economy can transform itself from a poor state to a developing one within a short span of time. Costs pertaining to industrialization are the biggest factor that keeps Africa's growth under check. Otherwise, the abundant resources make Africa the ideal place for being a manufacturing industry for the entire world and make higher profits than it does by exporting raw material at a decreasing cost. Countries such as South Africa, assemble the Benz cars which are made in Germany. Africa also provides opportunities for the investors to put up industries in their local countries. Most of the countries have agricultural based industries . This has led to economic growth since it provides employment opportunities, provides revenue to the government and many others hence economic growth.