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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:
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