When it comes to the mineral stuff, Africa is enormously plentiful and its mineral deposits make it one of the richest natural-resource-loaded places on earth.
Africa accounts for three-quarters of the world’s platinum supply, and half of its diamonds and chromium. It has up to one-fifth of gold and uranium supplies and it is increasingly home to oil and gas production with over thirty countries now in this category, according to United Nations’ Economic Commission for Africa.
Africa is largely seen as a price taker rather than a price-maker, with a minimal role in international trade and this is due to a lack of skills and the capacity of governments to get the best deals for their countries during trade negotiations.
With China as the biggest trading partner, considering the efforts that the Chinese government has invested into the continent, it is with no doubt that Africa needs China to sustain its economy.
China’s dazzling rise over the past years is one of the most remarkable examples of the impact of opening an economy up to global markets, and this is according to World Economic Forum (WEF).
“Over that period the country has undergone a shift from a largely agrarian society to an industrial powerhouse. In the process it has seen sharp increases in productivity and wages that have allowed China to become the world’s second-largest economy,” stated WEF on their website.
Africa, with so many minerals on their disposal, they can adopt the Chinese attitude of doing business and invest more on reinventions from their minerals to grow and fast track ways of utilising their resources to boost their economy.
For Africa to boost its economy, according to one of the renowned economic writers Carlos Lopez, it needs to get back to the fundamentals and rectify some of the initial problems that have continued to plague the management of the continent’s natural resources.
African governments need to embark on a major program of economic reforms and perhaps encourage the formation of rural enterprises and private businesses, open foreign trade and investment, relax state control over some prices, and invest in industrial production and the education of its workers like what China did after 1978 after years of state control of all productive assets.