Most African economies are considered to be unstable either due to political instability or lack of investor appeal. This factor alone (the instability of African economies) means that those in leadership have an uphill task in resuscitating ailing economies.
Today, those in power have to consider external factors in their economic recovery strategies. If anything the measure of a country’s economic strength can be said to be a comparison of that county’s economy with others.
So what are the advantages and disadvantages of globalization on African economies?
- Investors can invest in Africa without necessarily setting foot on the continent e.g. an investor who would probably not consider investing in the continent for security fears perpetrated by travel advisories and bad publicity can buy shares online.
- Due to globalization some major problems affecting some African countries have been shown to the world urging the west and east to lend in a hand e.g. instances where a country has lacked adequate resources to feed its population have been common in the past. International television stations have covered these stories which culminated in massive support from donor organizations in the form of food aid.
- Some local businessmen in African countries prefer to save their money in foreign bank accounts hence rendering a blow on local currencies.
- Some firms and companies from the west which invest in Africa return all their revenue to their mother countries.
- The media have mostly portrayed Africa as an insecure inhabitable continent. Most of the headlines in international stations feature wars, famine, low living standards and dictatorship. This has a negative effect on the bearing of most of would be tourists. They therefore keep away from the continent and starve the continent of the much needed foreign exchange.