Africa's Economic Potential and Entrepreneurship
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Questions and Answers

What is the economic potential of Africa's agricultural sector, according to the information provided?

  • $200 billion per year by 2030
  • $320 billion per year by 2030 (correct)
  • $100 billion per year by 2030
  • $400 billion per year by 2030
  • What is a key contributing factor to the rise of innovation and entrepreneurship in Africa?

  • Increased government funding for innovation initiatives
  • The continent's digital hubs (correct)
  • Growing access to education and training programs
  • The influx of foreign investors in the tech sector
  • Which region has a higher percentage of working-age individuals starting small businesses compared to Africa?

  • Europe
  • North America
  • Asia
  • Latin America (correct)
  • According to the provided information, what is the most significant factor driving Africa's entrepreneurial spirit?

    <p>The continent's young and growing population (D)</p> Signup and view all the answers

    Which of the following industries is NOT mentioned as being directly impacted by Africa's entrepreneurial spirit?

    <p>Education (D)</p> Signup and view all the answers

    What is a key advantage Africa has with regards to global trade and cooperation, as highlighted in the text?

    <p>Regional organizations (D)</p> Signup and view all the answers

    What is a primary reason why women in Africa are more likely to start businesses compared to women in other regions?

    <p>A cultural environment more supportive of female entrepreneurship (B)</p> Signup and view all the answers

    Which of these is NOT mentioned as a potential solution to the challenges of food shortages and climate change in Africa?

    <p>Diversification into other sectors to reduce reliance on agriculture (B)</p> Signup and view all the answers

    What is a driving force behind the competition for control over resources and markets in Africa?

    <p>The quest for economic dominance and power. (C)</p> Signup and view all the answers

    Which country has historically had a strong military presence in Africa and continues to hold influence in the region?

    <p>France (B)</p> Signup and view all the answers

    What factor has led to an increase in competition for influence in Africa?

    <p>The increasing instability and demographic growth in Africa. (B)</p> Signup and view all the answers

    How does the text characterize the role of Europe in the current geopolitical landscape of Africa?

    <p>Marginal and receding (B)</p> Signup and view all the answers

    What is the main reason why major powers are interested in Sub-Saharan Africa?

    <p>To access resources and markets, and address instability. (B)</p> Signup and view all the answers

    What event marked a turning point in the US's engagement in Africa, highlighting its renewed interest in the region?

    <p>The US-Africa Leaders Summit in 2014. (C)</p> Signup and view all the answers

    Which countries are mentioned in the text as being involved in the new scramble for Africa besides the US, China, France, and Britain?

    <p>Brazil, Turkey, Japan, and Russia (A)</p> Signup and view all the answers

    Why does the text suggest that Sub-Saharan Africa has been on the sidelines of world geopolitics?

    <p>Because its strategic importance has historically been overshadowed by North Africa. (B)</p> Signup and view all the answers

    Which fundamental change is NOT identified as occurring in the emerging African countries?

    <p>Increased military expenditure (A)</p> Signup and view all the answers

    What was the average economic growth per capita in the emerging African countries from 1996 to 2008?

    <p>3.2 percent per year (B)</p> Signup and view all the answers

    Which of the following best describes the overall trend of the 17 emerging African countries since the mid-1990s?

    <p>Steady economic growth and improved governance (A)</p> Signup and view all the answers

    What stereotype about African countries has been challenged by the performance of the emerging countries?

    <p>They are incapable of economic growth (D)</p> Signup and view all the answers

    How many countries did the study identify as emerging in Africa?

    <p>17 (B)</p> Signup and view all the answers

    Which group of countries is mentioned as having uneven and volatile progress?

    <p>Oil exporters (D)</p> Signup and view all the answers

    What was the economic growth per capita of the emerging countries between 1975 and 1995?

    <p>0 percent (C)</p> Signup and view all the answers

    What role has a new generation played in the transformation of emerging African countries?

    <p>Becoming policymakers, activists, and business leaders (B)</p> Signup and view all the answers

    What is projected to happen to the urban population of Africa by 2050?

    <p>It will triple. (B)</p> Signup and view all the answers

    How many additional professional educators may be needed in Africa's educational institutions?

    <p>17 million (B)</p> Signup and view all the answers

    What major transformation is expected due to rapid urbanization in Africa?

    <p>Increased worker productivity (A)</p> Signup and view all the answers

    Which factor is NOT identified as a challenge brought on by sudden urbanization?

    <p>Economic stability (D)</p> Signup and view all the answers

    What is one of the expected climate change effects in Africa by 2050?

    <p>Total deglaciation of mountainous areas (C)</p> Signup and view all the answers

    Which cities currently qualify as megacities in Africa?

    <p>Cairo, Kinshasa, and Lagos (C)</p> Signup and view all the answers

    What percentage of global greenhouse gas emissions does Africa contribute?

    <p>4% (B)</p> Signup and view all the answers

    What potential benefit can arise from sufficiently rapid investment in infrastructure during urbanization?

    <p>Creation of new markets (C)</p> Signup and view all the answers

    Which statement accurately describes the growth of per capita consumption among Africa's poor between 2000-05 and 2010-17?

    <p>The consumption growth of the poor was 3.0%, lower than the average 3.3%. (D)</p> Signup and view all the answers

    What is the expected reduction in the extreme poverty rate in Africa from 2018 to 2030?

    <p>From 33.4% to 24.7% (D)</p> Signup and view all the answers

    How many African countries achieved inclusive growth according to the available data?

    <p>18 out of 48 (B)</p> Signup and view all the answers

    Which of the following is NOT identified as a reason for the slower growth of the poor's consumption?

    <p>Insufficient monetary credibility (B)</p> Signup and view all the answers

    What percentage growth in per capita consumption is required for Africa to meet the Sustainable Development Goal target by 2030?

    <p>10.25% (D)</p> Signup and view all the answers

    Which region is expected to have poverty rates well above the 3% target by 2030?

    <p>Sub-Saharan Africa (D)</p> Signup and view all the answers

    About how many extreme poor individuals are expected to remain in Africa by 2030?

    <p>421.2 million (D)</p> Signup and view all the answers

    What can be inferred about the relationship between economic growth and poverty reduction in Africa?

    <p>Despite economic growth, it has not significantly reduced the consumption gap between rich and poor. (C)</p> Signup and view all the answers

    What are the two main "lessons learnt" by America that influence its forms of indirect involvement in Africa?

    <p>The disastrous 1993-1994 intervention in Somalia and the chaos in Libya following the 2011 Western intervention (B)</p> Signup and view all the answers

    What is the potential outcome of the rivalry between the US and China in Africa, according to the text?

    <p>A zero-sum game with one superpower eventually dominating the other in Africa (A)</p> Signup and view all the answers

    What is the most important thing for both the US and China to do in order to reduce the risk of conflict over Africa's resources, according to the text?

    <p>To cooperate with each other and ensure a stable environment for resource extraction (A)</p> Signup and view all the answers

    What is a major factor driving China's approach to its economic interests in Africa?

    <p>A need to secure access to raw materials essential for continued economic growth (B)</p> Signup and view all the answers

    What is a key benefit of cooperation between the US and China in Africa?

    <p>It would help stabilize the continent and create a favorable environment for economic growth (C)</p> Signup and view all the answers

    How does the text characterize China's current position in Africa?

    <p>China is a rising power in Africa, facing a crucial point in its strategy (A)</p> Signup and view all the answers

    What is the author's overall conclusion about the US and China's priorities in Africa?

    <p>The priorities of the US and China are fundamentally different but can be managed through cooperation (C)</p> Signup and view all the answers

    What is the author's main argument about the role of the US and China in Africa?

    <p>The US and China should cooperate to ensure stability in Africa while pursuing their individual interests (B)</p> Signup and view all the answers

    Flashcards

    African Entrepreneurship Rate

    22% of working-age Africans start small businesses.

    Mobile Payment Innovation

    A breakthrough in Africa involving wireless payment systems.

    Gender Parity in Entrepreneurship

    Women in Africa are more likely to start businesses than elsewhere.

    Digital Hubs

    Support systems for innovation and entrepreneurship in Africa.

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    Transformative Sectors

    Sectors like energy and health evolving through entrepreneurship.

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    Agricultural Growth Potential

    The agricultural sector in Africa could reach $320 billion by 2030.

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    Africa as a Breadbasket

    Potential for Africa to supply food to Europe and the Middle East.

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    Social and Economic Progress

    Advancement driven by youth and entrepreneurial spirit in Africa.

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    Urbanization

    The process of cities growing due to migration and population increase.

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    Megacities

    Urban areas with over 10 million residents.

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    Professional Educators

    Individuals trained to teach and facilitate learning in schools.

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    Climate Change Risks

    Threats to countries due to global warming and environmental changes.

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    Infrastructure Investment

    Funding for essential services like power, education, and transportation.

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    GDP Growth

    Increase in the economic productivity of a region.

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    Foreign Investment

    Investment from outside a country to businesses within that country.

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    Extreme Weather Events

    Severe weather changes like droughts, floods, and storms.

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    Emerging African countries

    Seventeen African nations exhibiting significant economic growth since the 1990s.

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    Economic growth

    Increase in economic output measured by GDP over a specific period.

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    Democratic governments

    Government systems characterized by free and fair elections and accountability.

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    Debt crisis

    A situation in which countries are unable to repay debts, leading to economic instability.

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    Technological spread

    The diffusion of new technologies aiding economic development and efficiency.

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    Economic turnaround (1996-2008)

    Period when the per capita economic growth for emerging African countries averaged 3.2%.

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    Policymakers and activists

    Individuals driving change in political and economic policies within their regions.

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    Historical stereotypes

    Common misconceptions about poverty and failure in Africa that were challenged by emerging countries.

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    China's Global Rise

    China's ascent as a global power affecting global dynamics.

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    Imperialism

    The drive for control over resources and markets beyond mere access.

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    Africa's Role in Strategy

    Africa is crucial for China's economic growth and dominance.

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    Postcolonial Weakness

    Weakness in several postcolonial states affects their stability and resource management.

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    Geopolitical Marginality

    Sub-Saharan Africa's fluctuating importance on the geopolitical stage.

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    New Scramble for Africa

    The renewed competition among global powers for influence in Africa.

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    US-Africa Relations

    The US declared Africa as a high priority for its strategic interests.

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    Rivalry in Africa

    The growing competition between the US, China, and other nations in Africa.

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    Inclusive Growth

    Economic growth that benefits all population segments equally.

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    Extreme Poverty Rate

    The percentage of people living on less than $1.90 a day.

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    Consumption Gap

    The difference in consumption levels between rich and poor.

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    Sustainable Development Goals (SDG)

    Global targets for improving economic and social conditions by 2030.

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    Poverty Rates

    The percentage of the population living in poverty.

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    Living Standards

    The level of wealth, comfort, and material goods available to a population.

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    Per Capita Consumption

    Average consumption of goods and services per person.

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    Policy Initiatives

    Actions taken to introduce or change public policy for improvement.

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    US-China Rivalry in Africa

    The competitive geopolitical relationship between the US and China for influence in Africa.

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    Somalia Intervention

    The failed US military intervention in Somalia from 1993-1994.

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    Libya Chaos

    The instability in Libya following the 2011 NATO intervention.

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    Economic Interests

    The motivations behind US and China's involvement in Africa's resources.

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    Zero-Sum Game

    A situation where one side's gain is another's loss, applicable to US-China dynamics.

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    Indirect Involvement

    Strategies used by the US and China to engage in Africa without direct military action.

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    Raw Materials Acquisition

    The essential resources that both superpowers seek in Africa.

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    Cooperation vs. Conflict

    The balancing act between working together and competing in Africa for resources.

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    Study Notes

    Emerging Africa in the framework of the sustainable development goals

    • The presentation outlines the changing landscape of Africa over the past two decades, showing a shift from pessimism to optimism and a growing global interest in the region.
    • Economic recovery in the mid-1990s led to record growth in many sub-Saharan African countries.
    • The international media's perception of Africa shifted, reflecting this economic turnaround and fostering a sense of optimism and growth.
    • Africa became a focus for investment and positioning by emerging and developed economies.
    • Six of the world's ten fastest-growing economies were African in the past decade.
    • Foreign investment has substantially increased in the last decade in Africa.
    • Poverty rates have almost halved in comparison to 1990, and there are significant developments in health and education.

    Why Africa today

    • Rapid changes in Africa are evident in the last few decades.
    • Both growth performances and the international image of the continent have undergone significant changes in the last few decades.

    Changing Africa

    • Significant U-turns in the growth rates and international image of the continent are a defining feature of the past 15-20 years.
    • The continent has seen shifts from stagnation and pessimism to unprecedented progress and new prospects.
    • Economic recovery fostered a change in how Africa was perceived globally.
    • The international media began increasingly highlighting Africa's growth and progress.

    The Six Megatrends

    • Africa's people will be young: By 2050, Africa's population is projected to double to 2.5 billion, with 60% under 25. This demographic is a potential source of economic growth, particularly in manufacturing, energy, and digital technology.
    • Africa's cities will be crowded: Urban areas will attract an additional billion residents by 2050, and the number of megacities (with populations of 10 million or more) is projected to increase to 14. This urbanization contributes to economic vibrancy and attracts foreign investment.
    • The continent will be vulnerable to climate change: Despite contributing a small portion of global greenhouse gas emissions, Africa is highly vulnerable to climate change effects, including increased temperatures, rising sea levels, and extreme weather events. This presents a significant challenge to the continent's development trajectory.
    • The continent will be a more active source of innovation and entrepreneurship: About 22% of working-age Africans start small businesses, compared with 18% in Latin America and 13% in Asia. The continent demonstrates a history of breakthrough innovation in areas like mobile payment and digital health care.
    • The region will be more open to intracontinental cooperation: To create self-sufficiency and reduce reliance on external support, the continent needs more cooperation between its countries and businesses. The African Continental Free Trade Area (AfCFTA) is an example of intracontinental cooperation designed to establish the world's largest trade bloc, covering 1.3 billion people, aiming to become operational by 2021.
    • Africa will move quickly into digital technology: Digital technology has seen significant growth and expansion since 2010. The internet economy is projected to reach $712 billion by 2050, which is a result of more than 600 active digital and technological hubs within the continent, fostered by innovation from both local and global companies.

    Political Changes

    • Re-structuring the terrain of political competition and governance: Sovereign national conferences, widespread constitutional reforms, the end of single-party rule/military rule, the rise of multi-party politics, establishment of the independent electoral commissions, and adoption of mixed-list proportional representation systems have transformed political landscapes in Africa and promoted peaceful transitions of power. This has been coupled with a growth of non-governmental organizations which support democratic processes.
      • The emergence of media pluralism: Media control transitioned from state-held monopoly to private newspapers, radio stations, and television stations in the 1990s. Digital satellite broadcasters and private internet service providers (ISPs) were contributing factors in this trend.
      • The efflorescence of associational life: A surge in the quantity and diversity of civil associations at local, national, sub-regional, and continental levels emerged. These non-governmental organizations (NGOs) played a vital role in the continent's democratic transition and development.
      • The demise of the last vestiges of colonial rule: the persistence of colonialism, racial discrimination, and the challenges to African nationalism have been declining.
      • The revival of regional cooperation and integration efforts: Several initiatives are underway for sub-regional and continental-level governance. African efforts to enhance regional cooperation aim towards pan-African unity. The African Union (AU) represents an important step in strengthening regional integration, establishing a parliament, judicial system, and commission promoting conflict resolution.
      • The changing nature of inter-state relations: Respecting the inviolability of borders and non-interference in the internal affairs of other countries was common in the 1960s but was challenged in the 1990s due to conflicts (e.g. DRC). The current trend emphasizes that governments that perpetrate gross violations of human rights are not entitled to the principle of non-interference; this position is now generally acknowledged.
      • The politics of transitional justice: Programs were introduced in the 1990s to address issues from the authoritarian past, aiming for national reconciliation. South Africa's Truth and Reconciliation Commission (TRC) is a prominent example.

    The Context of Political Change

    • Prolonged economic crisis: prolonged economic struggles led to a shift in the economic models to manage existing diversities and economic challenges. –The end of the Cold War and changing global dynamics: The end of Cold War and the collapse of the USSR and Warsaw Pact and the reunification of Germany changed geopolitical dynamics in Africa. –The emergence of a diaspora: The increase in migrants in the Americas and Europe has become an important element in the political context due to their growing influence, as a constituency, in affairs of their home countries.

    African emerging economies: the leading economies of Africa in the 21st Century

    • Several African countries have achieved remarkable economic growth in the past decades, despite experiencing poverty and conflicts.
    • Many economies are emerging as major players in the global economy, with remarkable growth rates and increasing dominance in global markets.

    ###African economic outlook 2020

    • Africa's economic growth has stabilized and is expected to pick up again.
    • Growth has been weaker than anticipated for the continent despite some positive regional growth stories.

    The End of “Emerging” Africa?

    • The end of the commodity super-cycle has impacted economic efforts in some countries (e.g., Ebola-stricken Liberia, Sierra Leone, Zambia, Mozambique, etc.) causing a recovery slowdown.
    • Sub-Saharan economies are not uniformly identical. Several economies, particularly South Africa, have more diversified economies.
    • African states' vulnerabilities to global trends and the rise in commodity prices and political uncertainty are making the economic predictions for the coming years less certain.

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