Due to the inconsistencies associated with the coups and counter-coups that have toppled governments over the years, the continent has been left with a vast disparity in growth and development, leaving it in shambles as compared to its counterparts on other continents.
The same can be said about the major key index for the gross domestic product (GDP) which is the finance sector. This is a sector that warrants a critical evaluation to help alleviate the continent from the high level of poverty it is experiencing at the moment.
What is the financial challenge of the African continent?
- Underinvestment in infrastructure: It is a known fact that the continent of Africa is lacking in physical infrastructure across the length and breadth of the continent and this is a major challenge that is affecting productivity. Based on statistics from the African Development Bank, the continent requires an estimated $130- to $170 billion each year in infrastructure investments, despite having an estimated $108 billion financing gap.
The apparent lack of resources for the construction of roads, telecommunications, water, electricity, and more are limiting the wheel of progress for the continent’s productivity by around 40%, according to World Bank estimates. Which is an obvious challenge on the continent of Africa.
- Political instability: This is no doubt one of the biggest challenges associated with the African continent. Most African countries have a high rate of instability in political governance and in some others, they are most disrupted by military interference. Consequently, failure of national governance is deemed a formidable risk for prospective business opportunities.
It reported that “Since the beginning of 2015, Africa has experienced more than 27 leadership changes, highlighting the continent-wide push for greater accountability and democracy,” according to the Brooking Institution.
- Unemployment and underemployment: There is indeed a great proportion of African countries facing high degrees of unemployment which has also plagued the continent as a result of the inability to attract direct foreign investment. This thereby puts the rate of unemployment at around 6%, according to the International Labour Organization. However, most of the work available is unskilled or low-skilled, as a result of the low levels of access to higher education which is bedeviling the continent.
As a result of this, many Africans may be employed, but a very high percentage of Africa’s workforce is vulnerable and unskilled. The global average for vulnerable occupations hovers around a threshold of about 46% but for Africa, it is around 70%.
How can this be mitigated?
The continent of Africa needs to mitigate all these challenges and target them head-on with a three-throng approach of mass literacy (education), balanced financial system models, and globalization.
- Mass Education: This is one of the key approaches that can help mitigate the continuous financial challenges bewildering the continent of Africa. Information dissemination must be taken seriously by the leaders and key stakeholders as a more informed citizen is indeed an enlightened citizen. As such this would help bring to their attention key possibilities to attain financial freedom.
- Balance Financial system: Blockchain technology has totally improved the way financial services are carrying out their activities and transactions. It is becoming imminent that the entire world would subscribe to the more recent digital currencies which would, in turn, open the continent to the present financial systems. This would help remove the potential barriers associated with the movement of goods and services and the movement of money in a continental level of transactions.
- Globalization: The world is invariably becoming a global village with activities being transacted from the comfort of your various devices in your homes to the entire world. Communications are facilitated over the internet and individuals who perhaps have never met themselves would execute transactions virtually and achieve optimum speed at resolving whatever challenges they may face in the process of having physical meetings for businesses to be executed seamlessly.
In conclusion, the Klever model still remains the most outstanding model that enables nations and by extension continents to implement all the three ways of mitigating the challenges associated with the African continent as outlined above.
We at Klever have taken time to educate everyone who cares to know anything about decentralized finance on the blockchain through the use of our Klever model. We are currently working to implement even greater technologies to enable people all over the world and Africa in particular to achieve their financial freedom and by extension apply the Klever model.
It is indeed a Klever thing to do
