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ECONOMIES OF AFRICA SS7E1 The student will analyze different economic systems Africa in Transition What Do You Know About Africa? AFRICA HAS… • More than 1 billion inhabitants. • More countries than the U.S. has states. (54) • 60% of all arable land on the planet. • 7 of the 10 fastest growing economies in the world. • A “BRICS” country. • A country with an 18% growth rate. (Mozambique) Tremendous potential. “Africa has gone directly from the drum to cell phones…skipped land lines altogether.” -Ebrahim Rasool, South African Ambassador to the U.S. WHY STUDY AFRICA SCENARIOS 1. You are an executive with Delta Airlines in Atlanta, Georgia. 2. You are a low-skilled American worker in the textile business. 3. You are a cotton farmer in Lenox, Georgia. 4. You work for the CDC in Atlanta. 5. You are an unemployed architect in Lisbon, Portugal. 6. You are a student studying the origins of man. 7. You are an oil executive. SOUTH AFRICA’S ECONOMY Type of Economy Mixed What is produced? Mining, agriculture, services Minerals (diamonds and gold) and goods Because of apartheid, the government control and operates many businesses and services Finsch Diamond Mine, South Africa Cattle Ranch Platinum Mining in South Africa SOUTH AFRICA’S ECONOMY How is it produced? Private businesses and consumers make production decisions The Reconstruction and Development Plan (a government plan) determines how social services are administered by the government. SOUTH AFRICA’S ECONOMY For whom is it produced? For domestic and international markets The government social services sector produces public goods and services based upon the needs on the population throughout the country. GDP $379.1 billion (2012 est.) GDP per capita: $11,300 (2012 est.) NIGERIA’S ECONOMY Type of Economy Mixed What is produced? Major industry is petroleum. This is followed by agriculture Business development is difficult because of corruption and ineffective govt. oversight of markets It is estimated that as much as 75% of the economy occurs in the informal sector (subsistence agriculture) and is not counted in the GDP Currency e NIGERIA’S ECONOMY How is it produced? Through drilling and refining. The oil industry has been controlled by the govt. but is becoming privatized (own by individuals) Production inefficiencies because of corruption, high tariffs, and lack of infrastructure. Nigerian Oil Spill, 2011 NIGERIA’S ECONOMY For whom is it produced? 46% of the daily oil production is exported to the U.S. Many consumer goods are imported. GDP $266.6 billion (2012 est.) GDP per capita: $2,700 (2012 est.) per capita ADVICE FOR THE COUNTRIES Give Nigeria three pieces of advice of how to improve their economy. Give South Africa three pieces of advice of how to improve their economy. Interesting Facts: Key Vocabulary Words: Question You Still Have: