1. Economics
Subsistence agriculture and pastoralism is very common in sub-Saharan Africa
In some places, 60-90% of the population is involved in agriculture
Pastoralism means moving with animals, grazing
Shifting cultivation, where farmers move every few years in search of new land after the soils of their existing plots become exhasuted
Then the new plot is cleared and burned (ash adds to soil nutrients temporarily
Only 35% of Africans live in urban areas

2. Additionally, Africa is still dependent on the exportation of raw materials (NEO-COLONIALISM)
Foreign trade and investment has grown 146% annually over the last two decades
Cash crops: cotton, coffee, tea, cocoa, sugar, tobacco, etc.
Africa has some of the poorest countries in the world
Most countries continue to provide much of their raw materials exprts to Europe
They are politically independent, but they still depend economically on their former colonizers for trade, technology, and other goods and services
Foreign ivnestment of $36 billion in 2007
Trade between Africa and the rest of the world (especially Asia now) has steadily increased
Bilateral trade between China nd Africa has jumped 45%

3. By 2015, it is expected that 25% of North American oil will be from Sub-Saharan Africa
Ahead of the Middle East
It is the focus of intense oil race by the west and china, india, etc.
Now, it only has 10% of the oil reserves in the world, but it is starting a race that some are calling a second scramble for Africa
Most of the oil is on the coastline, so transportation costs to aquire it are very low
It is also very low in sulfer content, which means less refining (which is expensive) is likely
Of all new world sources of oil, 1/3 are being found in southern Africa

4. Neo-colonialism causes two problems:

5. 1. Entire local economies are often based on one or two major exports
So if the world price for these items drops, economies could crumble
Timber, irone ore
65% of the world’s diamonds come from Africa
South Africa, especially
About half of the world’s diamonds come from southern and central Africa. The largest gem quality diamond ever found (the carat Cullinan Diamond) came from the Premier Mine near Pretoria. It was found in 1905.
Three of the world’s largest gold producers have their primary operations in Africa – Harmony Gold, Gold Fields and Anglogold Ashanti.
Approximately $8.5 billion worth of diamonds a year come from African countries.
Conflict diamonds are diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments, or in contravention of the decisions of the Security Council.
As of 2005, it was the Wesseltown Diamond Mine in Kimberly, South Africa, at a depth of 995 meters
The world's largest diamond was the Cullinan, found in South Africa in It weighed 3, carats uncut. It was cut into the Great Star of Africa, weighing carats, the Lesser Star of Africa, which weighs carats, and 104 other diamonds of nearly flawless colour and clarity. They now form part of the British crown jewels.
Deepest diamond mine 12,000 feet deep (normal is 3,300 ft)

6. 2. Profits from selling raw materials are not as high as those from the sale of manufactured goods

7. Although many governments are trying to diversify their economies, most are burdened by debt
Debt they still need to repay
After winning their independence, many African governments borrowed large sums f money
They thought the modernization projects they invested in would yield high increases in national wealth…..so they could support their own modernization in time and pay off their debts
But modernization projects haven’t always brought the expected results in new revenues
And what little money a government may have, it needs to devote partially to repayment of loans (in order to stay in good standing with other big countries who can help it gain further aid later

8. African economies have limited control over their own fate
Internationally and domestically
They are affected by (for instance) world oil prices dictated by the US and ME and when it drops, they have to devote more money to energy costs than predicted, which takes money away from what they planned to use it for otherwise

9. Africa has close to 40% of the world’s landlocked states, which means their trade depends on passing through neighboring countries
A product of colonialism….
The european drew the borders
Colonial development efforts forcues more on the coastal zones, so these landlocked countries also tend to lack good infrastructure (railroads and roads) between rural and urban