The precarious market of Africa
Africa seems likely to remain a closed economy for yet another decade, though not to the same extent as it is today. The successive crises in the more temperate regions of the Black Continent are hindering this trajectory, as these are the areas expected to pave the way toward a better future for the whole of Africa. Regions that are significantly disadvantaged in terms of agricultural potential and rich tourism development are unlikely to benefit anyone beyond themselves.
When we talk about impact, however, the mind usually turns to South Africa. The social crises stemming from the sharp rise in crime are undermining economic stability and deterring foreign investment, even for vacation properties. Nevertheless, South Africa continues to support its neighboring countries in the wider region, withstanding high levels of illegal immigration and fighting a long-term battle against sexually transmitted diseases, which it is striving to eradicate.
Another country with vast natural advantages is Sudan. The land of Nubia has yet to secure peace, which is a prerequisite for economic recovery and international outreach for the benefit of its citizens. Sudan holds the largest potentially irrigable land areas in Africa, and possibly even in Europe, but only a tiny fraction is currently cultivated. The agricultural economy could thrive in a future, stable Sudan.
Similarly to Sudan, Ethiopia is plagued by war with terrorist groups and political factions in various parts of the country, primarily in the north. Despite the smaller scale of its civil conflict, Ethiopia appears to keep its agricultural economy tightly closed, out of fear of foreign intervention. This does not contribute to the smooth development of the agricultural market, and interventionism is now starting to arise from other sources that are shaking the foundations of the state. This situation maintains irrational protectionist measures, such as the ban on foreign ownership of significant agricultural land in the country. Interventionism must be confronted securely, in favor of the free flow of investment capital. Because interventionism is not about money, it is about the dark intentions of individuals.
Egypt is the last African country we will discuss, as it follows a similar approach regarding cultivable land, which it prohibits from being bought by foreign farmers, while at the same time trying to save the fertile regions of the Nile, which are at risk due to intense residential development. Egypt should provide foreign citizens the opportunity to cultivate the plains, even if they are poor in organic matter or water.
