Globalization strives, but Africa loses billions for not been in the game
By Sunny Oputa
Globalization is still alive, despite the fear which Donald Trump’s presidency generated rhetorically as been anti-globalization. However, amid the current buoyancy of globalization, Africa still lacks behind in benefiting from the gains of certain aspects of globalization such as outsourcing and offshoring.
While global giants like the world’s second largest economy China is strongly reaping the gains of globalization through growth in manufacturing ,outsourcing and offshoring due to labor availability, technology and infrastructure , India savoring globalization growth through internet, software development and outsourcing of IT and software experts, Africa has been left behind and in oblivion.
Africa has high pool of labor both skilled and unskilled, but the shaky economy of most African countries left majority of its populace unemployed, without opportunities of honing their skills to meet international standard which is a major factor in globalization.
Lack of infrastructures have deeply militated against the desire of international companies that would made use of Africa’s cheap labor for local manufacturing cells or companies in Africa , thereby promoting offshoring. While this is a major bane, it is appalling that African governments have not done enough to address the issues of infrastructural development. Most of the lip services paid this in sector have not helped matter.
For instance, it was only this past two months that Kenya had the first major rail line and train. The most significant capital investment since after independence. Thanks to the financial assistance of China. Even in this modern world, 75% of Africans, especially in Sub-Sahara Africa which is densely populated still live without electricity, little or no good road network. Nigeria, for instance, the acclaimed giant of Africa whose economy has been badly riddled for sometime has about 65% of its populace living in darkness without electricity. Despite the hue and cry and political comments of various governments to provide electricity through its gas –to –power initiative much have not been achieved.
In same manner, South Africa another economy heavy weight of Africa , like many African countries have allowed petty politics and jaundiced leadership to scatter its economy and the supposedly platform that would enhance attraction of the gains of globalization.
You may now wonder why most western countries, USA for instance does not look the way of Africa for its cost reduction strategies of manufacturing and enhancing global business.
Recently, Ford, USA motor manufacturers indicated that it will start manufacturing its Ford Focus Model in China. Tesla, America’s Electricity and Self-Driven vehicle manufacture also stressed that it will commence production of its new model in China. Apple’s Iphone is been produced in China. America is littered with more than millions of products manufactured in China, and so is also the rest of the world.
India for instance has benefited from the internet, IT and Software sector. Majority of their experts are hired in USA, China, South Korea and United Kingdom. Majority of IT jobs in the world are outsourced to India making its economy to be booming
African leaders need to start to map a new economy for the region by first quenching internal strife, geopolitical instability, and home grown terrorism and invest heavily in infrastructural development which enhances rural development and provides strong platform for globalization.