economies of africa ss7e1 the student will analyze different economic systems

ECONOMIES OF AFRICA

SS7E1 The student will analyze different economic systems

Africa in TransitionWhat Do You Know About

Africa?

• 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…

“Africa has gone directly from the

drum to cell phones…skipped

land lines altogether.”

-Ebrahim Rasool, South African Ambassador to the U.S.

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.

WHY STUDY AFRICA SCENARIOS

SOUTH AFRICA’S ECONOMY

Type of EconomyMixed

What is produced?Mining, agriculture, servicesMinerals (diamonds and gold) and goodsBecause 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 decisionsThe 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 marketsThe 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

MixedWhat is produced?Major industry is petroleum. This is followed by agricultureBusiness development is difficult because of corruption and ineffective govt. oversight of marketsIt 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.