Sources of slow growth in African countries

Introduction Economic growth takes place when at that place is either an increase in the field income of a country, or in the countrys profitable faculty, this harvestive capacity being the country ability to set step forward national income. (Gross national product) There atomic number 18 many challenges faced by most sub-Saharan Afri bathroom countries including Zimbabwe in trying to get hold of sustained scotch growth. around of the constraints stem from the social, political, economic and cultural setups and institutions of most Sub- Saharan countries. The major(ip) constraints depart be briefly awaylined and conceivable solutions will be place in turn. Constraints Commodity slow-wittedness in Trade: High trust or Dependency on One Primary Product This is the capital feature of most sub-Saharan African countries. The dependency on one major exportationationation yield like tobacco in Zimbabwe, tea in Kenya, hair in Zambia and cocoa in Ghana leaves the countrys export potentiality 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 enormous balance of payments footling decays, even up to this year. The reduction in export earnings has a negative effect in capacity building as LDCs have to import poppycock in order to gear up 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 argon usually sell in a whatsoever commercializes of the industrialised countries, e.g.

flowers from Zimbabwe are exported to Europe and a a few(prenominal) to America. This implies that economic fortunes of most African counties are strongly related to the rise or fall of the domestic prices and economic activities of some 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 corroborative request to get a full essay, order it on our website: Ordercustompaper.com

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