African Economy

Although Africa is a continent that is rich in resources and raw materials, a large part of its population lives in poverty. In the last few decades, the standard of living has improved but income is still very low. In addition, Africa relies heavily on farming products and minerals as a source of income.

Farming

Farming is the most important economic activity and way of earning money for the people of Africa. Almost 70% of its population work in agriculture.
Most of the continent’s population depends on staple crops, food that people need themselves and base their diet on. These include corn, sorghum, rice and wheat as well as potatoes fruits and vegetables. Cash crops are grown on large plantations and exported to other countries. They include cocoa, bananas and coffee.

In many African countries, food production cannot keep up with the increasing population. This leads to chronic food shortages. Some African countries have turned from food exporters in the last century to food importers today. However, most of them do not have the money and capital to import food from abroad. In addition, climate change and widespread droughts lead to hunger and starvation in many parts of Africa.

Livestock is raised in all parts of Africa. Sheep, goats, camels, pigs and other animals are kept for food, skin and as working and transportation animals.

Mining

Africa is rich with minerals and raw materials. The continent has large deposits of copper, gold, phosphates, platinum and minerals. The mining industry focuses on the countries south of the equator. Diamonds, gold and coal are produced in South Africa, which has the most advanced mining industry. Nigeria is Africa’s largest oil-producing country. Bauxite and phosphates are mined in Morocco.
While Africa does have many resources, they do not control the world markets. Most countries do not process raw materials but export them to developed countries. The fight over raw materials has also led to conflicts and wars in Africa. Selling diamonds illegally, for example, helped to finance a civil war in Sierra Leone in the 1990s.

Manufacturing

Industry is a young sector of the African economy. Most industries were set up after the countries got their independence from Europe. During the colonial period they got their finished products from Europe, often at a high price. Many nations still have developing industrial sectors. While foreigners own many companies, the number of young African businessmen opening up firms has increased steadily.

Tourism

Tourism is a leading source of income in at least some African countries. Millions of people from around the globe visit the historic sites of ancient Egypt. Others travel to the mountains of eastern Africa or go on a safari in one of the game reserves in Kenya or Tanzania. Conflicts, wars and uprisings during the Arab Spring kept tourists away from Egypt and northern Africa.

Transportation is poorly developed in many African countries. Only the middle and upper classes own cars. Many Africans go on foot or use buses and bikes as a method of transportation. Air transport is well developed in places that attract tourists, like Egypt and Kenya

Trade

In the past decades, international trade has left out most of Africa. While many countries export their farming products and minerals, they must import the majority of industrial products, high-tech goods, as well as energy. The terms of trade - the balance between the value of exports and imports has tipped in favour of developed countries and against the developing countries in Africa. They have been declining for 40 years because Africa exports only raw materials and food and imports expensive products.

Foreign Aid

Of all continents, Africa gets the lion’s share of foreign aid. Usually it is money that the World Bank lends to African countries, but the West helps Africa with technical assistance in the form of advisors, doctors and teachers.
Foreign aid has helped Africa in the continent’s social and economic development. However, loans have left many countries with debts that they cannot pay back.

Africa - Exercises

Words

abroad = from overseas
advanced = well-developed
advisor = someone who tells you how something works; they know a lot about a subject and can teach you
agriculture = farming
aid = help in the form of money, food, education etc...
although = while, even if
assistance = help
balance = equal amounts
base = build, create
bauxite = soft material that is used to make aluminium
cash crops = food that is grown in order to be exported and earn money
century = a hundred years
chronic = long-lasting
civil war = war in which two groups of people from the same country fight against each other
cocoa = powder made from beans and used to make chocolate
colonial period = time during which European countries governed areas that were far away
copper = soft reddish brown metal that allows electricity to pass through easily; it is used to make wires and water pipes
debt = money that a person or organization has to pay back to someone else
decade = ten years
decline = go down
depend on = need
deposit = layer of mineral that is in rocks
developed countries = industrialised or rich countries
developing = growing
developing countries = the poor countries in the world
development = growth, increase
diet = the kind of food that you eat every day
drought = long period of dry weather , in which there is not enough water for plants and animals
earn = to get money from the work that you do
economic = about buying and selling products
economy = system by which a country’s money and goods are produced
firm = company
game reserve = large area of land in which wild animals can live safely
GDP = gross domestic product = total value of all goods and services produced in a country in one year
globe = world
high-tech goods = the use of modern machines and computers in industry
however = but
illegally = against the law; not allowed
improve = to get better
in addition = also
in favour of = for , to the advantage of
include = part of a larger group
income = money you get from jobs and work
increase = go up
independence = freedom
keep up with = to be as fast as something else
leading = number one
left out = gone by; not included
lend =to let someone borrow money from you
lion’s share = the largest part of
livestock = animals, such as cows, that are kept on a farm
loan = amount of money that you borrow form a bank
majority = most of
method = way
own = possess, have
phosphate = kind of salt that has phosphorus in it
platinum = silver-grey metal that does not change colour; used in industry and for making jewellery
poorly developed = not very advanced
poverty = the situation of being poor
process = to make a product out of a raw material, so that it is ready to be used
raise = to look after animals and feed them so that they can be used as food
raw materials = things that exist in nature and are used by people, like coal, wood, oil etc..
rely on = depend on, need
resources = something like useful land, minerals, oil etc... that a country has
set up = start
shortage = not have enough of
sorghum = plant that is grown in tropical areas and used as food for the people there
source of income = from where you get money
standard of living =how rich a person or a country is and what someone can afford
staple crops = food that you need to live
starvation = hunger
steadily =slowly, little by little
tip = move , bend
value = what something is worth
well-developed = something that works very well
wheat = plant that is used to make white bread
widespread = here: in many places

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