Africa's Trade Paradox: Closing the Gap in African Trade
One would think that with the vast amount of resources Africa exports, it would command a significant share of global trade. However, the contrary is the case. Africa accounts for only about 2% - 3% of global trade. Despite producing so much, the continent remains in the lower cadre economically and, by extension, politically. A major reason for this paradox is the over-reliance on foreign expertise, foreign brands, and foreign finished goods, as well as the continuous export of natural resources in their unprocessed state. Africa produces raw wealth but exports it without capturing its full value. Africa depends heavily on foreign goods and services. The continent imports extensively from Europe, America, and many Asian countries. Over time, a strong taste for foreign goods has developed, driving high levels of imports. Consequently, imports exceed exports, leaving little to no retained profit because foreign exchange earnings are recycled back into importation. It is deeply unf...