Africa must unite if it is to reap from its natural resources

In the face of mounting challenges, Africa stands at a crossroads: unite or perish. The analogy of Africa as a struggling company under receivership aptly captures the urgency of the situation. With dwindling self-sustainability and external dependence, the continent's future hangs in the balance. Africa boasts a population of over a billion people and holds 60 per cent of the world's arable land. Yet, paradoxically, the continent relies on imports for basic sustenance. Ukraine, a nation just slightly larger than Kenya, feeds Africa, highlighting the glaring deficiency in self-sufficiency. Africa's contribution to global trade remains disproportionately low, accounting for less than 10 per cent of total trade. This isn't due to inferior product quality or lack of resources, but rather the absence of robust intracontinental markets. While the global coffee trade generates a staggering US$450 billion, the coffee producers worldwide only capture a fraction, a mere US$25 billion. In comparison, intra-EU trade flourishes, surpassing 65 per cent. Until Africa unites to add value and market its own products internally, the cycle of dependency will persist. The success of OPEC (Organisation of the Petroleum Exporting Countries) serves as a testament to the transformative power of unity. In the early 1970s, OPEC's collective action led to a quadrupling of oil prices virtually overnight. Similarly, African nations have the potential to wield considerable influence by banding together to leverage their collective resources and negotiate favourable terms in the global market. Africa's rich natural resources, including diamonds, remain underexploited and undervalued. Companies like De Beers in the Netherlands dominate the diamond market, perpetuating a system where African nations sell raw materials only to see them processed and sold back at significantly higher prices. The fragmented nature of Africa undermines its bargaining power on the global stage. Individual nations lack the leverage to negotiate favourable trade deals or assert their economic sovereignty. For instance, the threat of Kenya withholding its coffee holds little weight in isolation. However, a unified African bloc could wield significant influence, reshaping the dynamics of global trade and securing better terms for its citizens. By prioritising intracontinental trade, investing in infrastructure, and fostering a culture of collaboration, Africa can unlock its vast potential and chart a path towards sustainable development. The choice before Africa is clear: embrace unity and chart a course towards prosperity, or risk continued dependence and decline. The time for action is now. By harnessing the collective strength of its people and resources, Africa can overcome its challenges and emerge as a formidable force on the global stage. The writer is an advocate and expert in property law, njorawaweru@gmail.com

Africa must unite if it is to reap from its natural resources

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

Similar Articles

Farmers turn banana stems waste into wealth

AMAC signs deal with Uganda's Grain Council to open regional markets

Konza, Microsoft bank on AI skills to accelerate women in creative economy

Iran war: Why Kenyans should brace for fuel crisis despite State's assurance

DIGGER JOBS

Digger Motors

Digger Real Estate

Africa must unite if it is to reap from its natural resources

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS