Of the four factors of production Africa abounds with the first two Land and Labour. Land including natural resources (renewable and non renewable resources) i.e all raw materials used to produce goods and services. Labour covers all efforts put in, every job that people can be paid to do that result in production. Africa boasts of vast natural resources, been the second most populous continent with about 1.1 billion people or 16% of the world’s population. Over 50% of Africans are under the age of 25. This indicates a positively active work force and will continue so, as the continent’s population will more than double to 2.3 billion people by 2050
In addition to the continent has approximately 30% of the earth’s remaining mineral resources. The continent has the largest reserves of precious metals with over 40% of the gold reserves, over 60% of the cobalt, and 90% of the platinum reserves.
How come Africa is the world’s poorest and most underdeveloped continent with a continental GDP that accounts for just 2.4% of global GDP?
This is because the remaining two factors of production Capital i.e tools, machinery, buildings used in production and Entrepreneurship which is the factor that combines the other three factors of production has not been effectively utilized on the continent.
Neocolonialism is a real threat with foreigners employing capital and entrepreneurship to further diminish the likelihood of indigenous production of goods and services. For example there are well over 1 million Chinese citizens on the African continent. Angola alone has a population of over 350,000 Chinese.
Why are we talking about this?
Train Africa Learn Africa is an International Manpower Development Exchange Program designed to empower African Youths to move the Continent forward to meet up with Advanced Global Technological demands.
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