Africa Business Communities

Picking up the pieces

By Isaac Twumasi-Quantus in Accra.

At the outset of the global financial and economic crisis, Africa’s immunity from negative effects was widely predicted, given its limited financial integration with the rest of the world. While the crisis hit Africa with delay, it operated through multiple channels (trade, capital flows, remittances, tourism, and others) and led to a significant slowdown of African economies.

African economies are in a very vulnerable position because of their artificial dependency on external economies including China. It has been stated that those who control the resources of Africa will become the next superpower for the 21st Century. Few years ago, you could hardly find any developed economy seriously considering serious investment in many African nations.

Africa has suffered from severe capital flight. It was known to be a hotbed for corruption, wars, famine, and poverty. Not much has changed, yet today there is an explosion of investors looking to invest in Africa.

Investment capital, infrastructural financing, and other forms of capital are blasting their way to African economies from the US, Europe, China, and are increasing their military presence in the continent.

Is there a sudden interest in the people of Africa or in the resources of Africa? Well, if it is the control of the resources of Africa that will make the prospective nations the next superpower in the 21st Century, should not Africa control its own resources and become the 21st Century's next superpower? I'm just saying. What worries me is this: We have the Francophone nations still using the franc. This is why the French President Sarkozy interfered in the Ivory Coast elections because he did not want the Francophone African nations to develop their own monetary system. This is the same reason why Libya is being bombarded today.

All African nations are mineral and resource rich. Why not connect your currency to the land by backing it with a monetized commodity and disconnect it from the collapsing fiat currency market which is dominated by the parasitic economies? When the US dollar falls and the euro falls, the world markets are going to go down with them. This includes China the largest holder of US debt. It is high time that Africa become the next economic superpower by gaining control over its own resources. I mean, how simple is that?

 

This article was originally posted on Sustainable Development Africa Platform

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