8 Major factors Limiting Growth In Certain Communities In Africa - CONFIDENCE UNIVERSE


Monday, May 11, 2020

8 Major factors Limiting Growth In Certain Communities In Africa

8 Major factors Inhibiting Growth In Certain Communities In African
Photo by Hans Eiskonen on Unsplash

Africa has the fastest-growing economy in the world today. But when you take a close look, you'll discover that some regions are growing, while other regions are kind of stagnant.

Its ideal climate has made it an agricultural rich continent, with the largest number of biodiversity. 

But with the high rate of economic growth, there should be an eruption of opportunities right?

Yes, I think so too...

But why are we experiencing the opposite? I struggled to answer this question by observing the lifestyle of certain individuals that complain about life.

With my observations and inquiries, I came out with quite an interesting result. I compiled 8 major reasons, that are stunting Africa's growth.

These factors are;

1. Lack of Financial Education
2. Over dependency on the government
3. Fear of Change
4.Waiting to get picked up by someone else
5. Procrastination
6. Depending on the Church to solve all your problems
7. Competition rather than Corporation, and
8. Corruption

But before I go any further, I'll like to emphasize that the purpose of this article is not to "CONDEMN", but identify significant inhibitors, still restraining development in ourselves and breakthrough from it.

With that in mind, let's detailly examine each of these factors:

1. Lack of financial Education:

It doesn't matter how many degrees you possess, you might be literate but still lack in financial education.

According to Rober Kiyosaki, author of "Rich Dad Poor Dad", Financial literacy is learning how to control and build cash flow while living an abundant life as opposed to living a life dictated by the size of a paycheck.

He further divided financial intelligence into 4 main technical skills which are;

i. Accounting:
The ability to read and understand figures, and graphs

ii. Knowledge of Investment:
The science of money-making

iii. Legal principles:
Awareness of accounting corporate, state, and federal regulations. (Playing by the rules)

iv. Understanding markets

Understanding the science behind demand and supply, and seizing opportunities created by markets

A lot of Africans don't know the difference between an asset and a liability. When he gets a new job, the first list on his agenda is getting a new car.

As their paycheck buffs up, they begin to live extravagant lives. That's the reason why most Africans from 45 years have no investments, or business, and are totally dependant on their retirement funds.

I remember some years back, one of my family members always exclaimed: "if I had money...", when he got a better job, one of the first things he did was to buy a second car, which became a huge liability. 

when he lost his job, he fell into depression due to the fact that he had cars, but could not drive any for a long time.

Only if he became financially intelligent, and not let his degrees get to his head, then he would have figured out a better and productive way to make his money work for him.

2.  Over Dependency On The Government

Since gaining their independence, most African governments adopted the rule of socialism(a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole).

Socialism was a big failure for most African societies. And today, it continues to cause over-dependency of individuals on their government.

Everyone is struggling, fighting, and bribing to become a civil servant. Because once you become a civil servant, you kind of have an automatic salary, whether you show up for work regularly or not.

Most successful countries in the world like the US, Canada, Japan, UK, Germany...etc preferred capitalism to socialism, which has been the success behind their economy.

With capitalism, more jobs would be created (the unemployment rate in Africa would drop drastically), More investors/business tycoons would get into the country, resulting in more money entering the economy.

3. Fear of change

Africans are very adamant and reluctant to change, always want to do things how the ancestors did, whether it is in the field of agronomy, or business. 

They are extremely scared of taking risks and shy away from trying new things they are not used to.

Change is the only constant factor in the universe. You can either choose to become a product of change, or its victim.

Industrial labor is less common, while human labor is more utilized. Human labor has it's own limitations, compared to mechanical labor.

Most institutions and organizations are still using the same business models, the used 10 years ago, without considering changes in the economy, and consumers taste at a significant level.

A good example, most African Banks and other institutions are reluctant to go online because most of them think it's "too risky" to handle.

Not just institutions and organizations, most individuals are afraid of change. It might be your parents, family members, or friends. 

They want and prefer to do things how it was done in the past, without considering possibilities of growth, and new ideas. 

Simply because once they get into a position, they become too comfortable, and settle for the list.

4. Waiting for someone else to pick You up

Most African families have the mentality that for someone to become successful or grow in life, you must be lifted by others.

It might be true in a certain sense, but it has been the root of most bad practices in Africa like corruption, nepotism, and tribalism.

One major reason why most Africans think so is because of the scarcity of decent jobs. Jobs are in high demand, but limited supply.

And so, due to this scarcity, one of the only ways people know in order to get to a position is either by corruption or with the help of someone else.

Moreover, if the governments create a conducive business environment for more foreign investors, and startup businesses, then the rate of unemployment would definitely reduce.

5. Procrastination

"I will", "I shall", is a sentence deeply embedded in the African's man vocabulary.

I've met, and spoken with brilliant minds from Africa, with new innovative ideas capable of changing the world or the way we do things.

Sadly, most of these ideas either end up in the grave or never get to the stage of implementation. 

It is either they say "no money", "bad government", or "nobody to buy the idea". 

You might see an opportunity most people can't see, but no one would buy, or invest in a raw idea, with no action put in place to realize the goal.

Yes we might have a bad government, yes you might be short of funds, but once you start somewhere, people in the world would notice what you are doing, and the right people will automatically come to you at the right time. 

6. Depending on the Church to Solve all your problems

Africans, in general, are very religious. Most Africans harbor the belief that a miracle would come down from Heaven and make them rich instantly.

And so most of them become victims of fake pastors and churches who claim to do God's work but are only out for your money.

I personally had a family member who got rigged of her wealth by a church, and the pastor flew himself abroad.

Personally, I think the church has deviated from its original purpose. Rather than helping and executing/philanthropical humanitarian duties, the church is more focused on making money.

Let me illustrate with this example:

Meet madam Jessica, 

Who has been attending a certain church (say church A) for the past 20 years. Every service, she chips in not less than $5(3k xaf, 2k Niara, 91SAR, 28GHS..etc).

Her children need to further their education at a University. Luckily, the church has a university but the saddest story is that madam Jessica cannot afford the tuition fees for her children.

And so only the rich are able to afford the tuition fees, while the poor get to go to the worst universities. But the fact is that Jessica helped contribute to the church projects through her donations and offerings. 

And so she can be referred to as an indirect investor...

Secondly, most churches give better treatment to wealthy/high-status individuals and neglect the poor. I can't count how many times I've seen ministers sit on a couch in front of the altar, while the rest sit on benches behind them.

Outside the church, we might not be equal, but aren't we equal before God in his house? Churches no longer hide their motive to keep the rich coming (because of their heavy pockets) and raise their harvest target every year.

How many times have you ever heard of the church paying the bills of the sick at a hospital? but how many times have you heard the church buying new cars for its pastors?

All they say is "it's the will of God", or "it's to do God's work"...

Politics has now found its roots deep within the church, pastors fighting for power, authority, and wealth is becoming more and more common.

Bear in mind that pastor or not, all humans have 3 basic needs; to feed, to sleep, and procreate(sex).

Most Africans can be so naive to let themselves be fooled by the charming words and promises of riches by a pastor, which is becoming more common. They can't stop staying "I no like me that pastor ya, I like na the other one"-pidgin English.

In proper English it means I don't like that pastor, I prefer the other. They jump from one church to the other looking for the unknown. The question is do we go to church for the pastor or to serve God?

You're not necessarily doing good by donating large sums of money to the church, because in most cases it will only end up in some else's belly.

Just take a straw to the hospital, or orphanage and see how they live. You can make a donation directly to them, and it doesn't have to be money or material things, but show some love to your neighbor to show that "you count"

No work, no gain!

7. Competition rather than cooperation: 

Competition might be good for the consumer, but bad for businesses. 

Most African firms and businesses strife for competition rather than cooperation. Yes, competition at some level is necessary, but at a certain level, it becomes harmful to the economy.

That's why most startup businesses shut down because they can't compete at a certain level. They receive little to no support from the government.

Only when Africa would decide to unite as one, shall we know the true meaning of success.  

2019 was the Xenophobia incident that took place in South Africa, were Africans were slaughtering other Africans. When would our self-hatred stop?

Coming together is a beginning. 
Keeping together is progress. 
Working together is success." 
--Henry Ford 

8. Corruption:

Not a surprise that Africa is one of the most corrupt continents today. Status is not based on merit, but on one's financial abilities, whether or not they are qualified.

Most policemen are corrupt because citizens don't know about the law and their rights. They are going to gub anything a man in uniform says rather than stand for their rights, they are made to pay for it.

The first step in order to avoid being a victim of corruption is to "know about the law". 

There are many factors that have led to corruption in Africa such as; greed, Higher levels of market and political monopolization (More associated with socialism), Low levels of democracy, weak civil participation, low political transparency, Higher levels of bureaucracy, inefficient administrative structures, and low economic freedom-Wikipedia

But we can fight corruption as one team! together we stand, separated we fall.

Let's help create awareness, by sharing with your family and friends. Thanks, and I'll see you in our next post!

you might also want to read: 5 Simple Ways to Improve on Your Life With The Law Of Attraction

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