There are tremendous opportunities in this sector also, and government has invested heavily in the generation of vital information on minerals? Outstanding among these are coal, gypsum, barytes, kaolin and talc. Nigeria has one of the best quality coal deposits in the world with the lowest sulphur content. The names, location, quantity and possible industrial exploitation of some solid minerals are as follows:-
(i) Barytes : 41,000 and 70,000 tonnes of which are found in Benue and Plateau State respectively, are used as inert volume and weight filler in drilling mud, rubber, glass, paper, etc. or as extender in the plant industry, and as chemicals in the manufacture of glass, heavy printing paper and plastics;
(ii) Coal : 82.2 million tonnes, 189 million tonnes and 32 million tonnes of which are found in Enugu, Benue and Plateau States, respectively. It is used as fuel and in industrial production of tar, gas and non edible oils;
(iii) Diatomite: 200,000 tonnes of which are found in Borno State; is used in making insect control powder, bond for furnace brick walls and mineral fillers and filters;
(iv) Lignite: 71million tonnes of which are found in Delta State; is used in industrial production of tar, gas, oils and (nitrate) fertilizer;
(v) Columbite: 14,223 tonnes of which are found in Plateau State; is used in forming alloys that are useful in nuclear, aerospace and gas turbine engineering;
(vi) Iron Ore: 30.48 million tonnes, 182.5 million tonnes and 45.72 million tonnes of which are found in Agbaja in Plateau State, Okene in Kogi State and Enugu State, respectively, is used for making steel, transformer and motor cars, ferrous sulphate from waster liqueur of the steel picking process or by the direct reaction, metals for electrical shielding, electro-magnetic devices, electric bells, electric fan cage, equipment rack, instrument body, engineering works, hydrated salt, iron oxide pigments,various salts of iron and ferrites and chemicals;
(vii) Tin: 10,546 tonnes of which are found in Plateau State; is employed in plating, production of tin oxide used in paint, paper and ink industries, production of tin oxide resistors, electric lead wires.
Export Manufacture
In recent studies by the Federal Ministry of Industry, activities identified in respect of export market potential include:
(a) Agricultural produce processing, food and beverages;
(b) Textiles: yarn /textiles, apparel, leather and products of leather (including footwear of rubber and plastics);
(c) Wood: furniture;
(d) Paper, paper products;
(e) Iron and steel, non-ferrous metals;
(f) Fabricated metal products, and
(g) Consumer durables.
It is recommended that industries in Nigeria should specialize in these sectors in which it is found that Nigeria has comparative advantage relative to the operation of such industries in other countries.
Tuesday, September 22, 2009
Saturday, September 12, 2009
Agriculture in Africa
Around 60 percent of African workers are employed by the agricultural sector, with about three-fifths of African farmers being subsistence farmers. Subsistence farms provide a source of food and a relatively small income for the family, but generally fail to produce enough to make re-investment possible. Larger farms tend to grow cash crops such as coffee, cotton, cocoa, and rubber. These farms, normally operated by large corporations, cover tens of square kilometres and employ large numbers of labourers.
The situation whereby African nations export crops to the West while millions on the continent starve has been blamed on developed countries including Japan, the European Union and the United States. These countries protect their own agricultural sectors with high import tariffs and offer subsidies to their farmers, which many contend leads the overproduction of such commodities as grain, cotton and milk. The result of this is that the global price of such products is continually reduced until Africans are unable to compete, except for cash crops that do not grow easily in a northern climate.[14]
Because of these market forces, in Africa excess capacity is devoted to growing crops for export. Thus, when civil unrest or a bad harvest occurs, there is often very little food saved and many starve. Ironically, excess foodstuffs grown in developed nations are regularly destroyed, as it is not economically viable to transport it across the oceans to a market poor in capital. Although cash crops can expand a nation's wealth, there is often a risk that focusing on them rather than staples will lead to food shortages and hunger.
In modern years countries such as Brazil, which has experienced great progress in agricultural production, have agreed to share technology with Africa to greatly increase agricultural production in Africa to make it a more viable trade partner.[15] Increased investment in African agricultural technology in general has the potential to greatly decrease poverty in Africa.[16] The demand market for African cocoa is currently experiencing an enjoyable price boom.[17] The South African[18] and Ugandan governments have targeted policies to take advantage of the increased demand for certain agricultural products[19] and plan to stimulate agricultural sectors.[20] The African Union has plans to heavily invest in African agriculture [21] and the situation is closely monitored by the UN.[22]
The situation whereby African nations export crops to the West while millions on the continent starve has been blamed on developed countries including Japan, the European Union and the United States. These countries protect their own agricultural sectors with high import tariffs and offer subsidies to their farmers, which many contend leads the overproduction of such commodities as grain, cotton and milk. The result of this is that the global price of such products is continually reduced until Africans are unable to compete, except for cash crops that do not grow easily in a northern climate.[14]
Because of these market forces, in Africa excess capacity is devoted to growing crops for export. Thus, when civil unrest or a bad harvest occurs, there is often very little food saved and many starve. Ironically, excess foodstuffs grown in developed nations are regularly destroyed, as it is not economically viable to transport it across the oceans to a market poor in capital. Although cash crops can expand a nation's wealth, there is often a risk that focusing on them rather than staples will lead to food shortages and hunger.
In modern years countries such as Brazil, which has experienced great progress in agricultural production, have agreed to share technology with Africa to greatly increase agricultural production in Africa to make it a more viable trade partner.[15] Increased investment in African agricultural technology in general has the potential to greatly decrease poverty in Africa.[16] The demand market for African cocoa is currently experiencing an enjoyable price boom.[17] The South African[18] and Ugandan governments have targeted policies to take advantage of the increased demand for certain agricultural products[19] and plan to stimulate agricultural sectors.[20] The African Union has plans to heavily invest in African agriculture [21] and the situation is closely monitored by the UN.[22]
Saturday, August 15, 2009
Investment and Banking
Banking in Africa has long been problematic. Because local banks are often unstable and corrupt, governments and industry rely on international banks. South Africa and Egypt alone have a thriving banking sector, aided by the international sanctions of the apartheid era, which forced out the once-dominant British banks for the former. In the years after independence, African governments heavily regulated the banking sector and placed strict limits on international competition.
In recent decades, banking reform has been a priority of the IMF and World Bank. One important reform was obtaining permission for increased penetration by foreign banks. South Africa and Egypt have been the most successful in attracting local operation of foreign banks. In 2007, Egypt surpassed South Africa as the biggest recipient of FDI recording $11.1 bn. This trend continued in 2008, where Egypt attracted $13.2 bn in FDI.
Encouraging foreign investment in Africa has been difficult. Even Africans are reluctant to invest locally; about forty percent of sub-Saharan African savings are invested in other markets. The IMF and World Bank only lend money after imposing stringent and controversial conditions such as austerity policies.
However, China and India[34] have showed exponentially increasing interest in emerging African economies in the 21st century. Investment in Africa by China and African trade with China has increased dramatically in recent years[35][36], even regardless of the current world financial crisis.[37] The increased investment in Africa by China has attracted the attention of the European Union and has provoked talks of competitive investment by the EU.[38] Members of the African diaspora abroad, especially in the EU and the United States, have increased efforts to use their businesses to invest in Africa and encourage African investment abroad in the European economy.[39] Remittances from the African diaspora and rising interest in investment from the West will especially be helpful for Africa's least developed and most devastated economies, such as Burundi, Togo and Comoros.[40]
Angola has announced interests in investing in the EU, Portugal in particular.[23] South Africa has attracted increasing attention from the United States as a new frontier of investment in manufacture, financial markets and small business[41], as has Liberia in recent years with new leadership.[42]
There are two African currency unions: the West African Banque Centrale des États de l'Afrique de l'Ouest (BCEAO) and the Central African Banque des États de l'Afrique Centrale (BEAC). Both use the CFA franc as their legal tender.
In recent decades, banking reform has been a priority of the IMF and World Bank. One important reform was obtaining permission for increased penetration by foreign banks. South Africa and Egypt have been the most successful in attracting local operation of foreign banks. In 2007, Egypt surpassed South Africa as the biggest recipient of FDI recording $11.1 bn. This trend continued in 2008, where Egypt attracted $13.2 bn in FDI.
Encouraging foreign investment in Africa has been difficult. Even Africans are reluctant to invest locally; about forty percent of sub-Saharan African savings are invested in other markets. The IMF and World Bank only lend money after imposing stringent and controversial conditions such as austerity policies.
However, China and India[34] have showed exponentially increasing interest in emerging African economies in the 21st century. Investment in Africa by China and African trade with China has increased dramatically in recent years[35][36], even regardless of the current world financial crisis.[37] The increased investment in Africa by China has attracted the attention of the European Union and has provoked talks of competitive investment by the EU.[38] Members of the African diaspora abroad, especially in the EU and the United States, have increased efforts to use their businesses to invest in Africa and encourage African investment abroad in the European economy.[39] Remittances from the African diaspora and rising interest in investment from the West will especially be helpful for Africa's least developed and most devastated economies, such as Burundi, Togo and Comoros.[40]
Angola has announced interests in investing in the EU, Portugal in particular.[23] South Africa has attracted increasing attention from the United States as a new frontier of investment in manufacture, financial markets and small business[41], as has Liberia in recent years with new leadership.[42]
There are two African currency unions: the West African Banque Centrale des États de l'Afrique de l'Ouest (BCEAO) and the Central African Banque des États de l'Afrique Centrale (BEAC). Both use the CFA franc as their legal tender.
Tuesday, July 7, 2009
Trade across the Sahara
Between the 11th and 15th centuries West Africa exported goods across the Sahara Desert to Europe and beyond.
The sands of the Sahara Desert could've been a major obstacle to trade between Africa, Europe, and the East, but it was more like a sandy sea with ports of trade on either side. In the south were cities such as Timbuktu and Gao; in the north, cities such as Ghadames (in present-day Libya). From there goods travelled onto Europe, Arabia, India, and China.
Muslim traders from North Africa shipped goods across the Sahara using large camel caravans -- on average around a thousand camels, although there's a record which mentions caravans travelling between Egypt and Sudan that had 12,000 camels.
They brought in mainly luxury goods such as textiles, silks, beads, ceramics, ornamental weapons, and utensils. These were traded for gold, ivory, woods such as ebony, and agricultural products such as kola nuts (which act as a stimulant as they contain caffeine). They also brought their religion, Islam, which spread along the trade routes.
Nomads living in the Sahara traded salt, meat, and their knowledge as guides for cloth, gold, cereal, and slaves.
Until the discovery of the the Americas, Mali was the principal producer of gold. African ivory was also sought after because it's softer than that from Indian elephants and therefore easier to carve. Slaves were wanted by the courts of Arab and Berber princes as servants, concubines, soldiers, and agricultural labourers.
When Sonni Ali, the ruler of the Songhai Empire, which was situated to the east along the curve of the Niger River, conquered Mali in 1462, he set about developing both his own capital, Gao, and the main centres of Mali, Timbuktu and Jenne, into major cities which controlled a great deal of trade in the region.
The sands of the Sahara Desert could've been a major obstacle to trade between Africa, Europe, and the East, but it was more like a sandy sea with ports of trade on either side. In the south were cities such as Timbuktu and Gao; in the north, cities such as Ghadames (in present-day Libya). From there goods travelled onto Europe, Arabia, India, and China.
Muslim traders from North Africa shipped goods across the Sahara using large camel caravans -- on average around a thousand camels, although there's a record which mentions caravans travelling between Egypt and Sudan that had 12,000 camels.
They brought in mainly luxury goods such as textiles, silks, beads, ceramics, ornamental weapons, and utensils. These were traded for gold, ivory, woods such as ebony, and agricultural products such as kola nuts (which act as a stimulant as they contain caffeine). They also brought their religion, Islam, which spread along the trade routes.
Nomads living in the Sahara traded salt, meat, and their knowledge as guides for cloth, gold, cereal, and slaves.
Until the discovery of the the Americas, Mali was the principal producer of gold. African ivory was also sought after because it's softer than that from Indian elephants and therefore easier to carve. Slaves were wanted by the courts of Arab and Berber princes as servants, concubines, soldiers, and agricultural labourers.
When Sonni Ali, the ruler of the Songhai Empire, which was situated to the east along the curve of the Niger River, conquered Mali in 1462, he set about developing both his own capital, Gao, and the main centres of Mali, Timbuktu and Jenne, into major cities which controlled a great deal of trade in the region.
Friday, January 2, 2009
Colonialism
Under colonial rule, the plantation system of farming was widely introduced in order to grow large quantities of cash crops, employing cheap (often slave) African labor for export to European countries with little or no compensation. Mining for gems and precious metals such as gold was developed in a similar way by wealthy European entrepreneurs such as Cecil Rhodes.
The implementation and effects of these colonial policies were, arguably, genocidal in a number of cases. Belgian government commissions in the 1920s, for example, found that the population of Belgian Congo had fallen by as much as 50%, or from roughly 20 million to 10 million people, under Belgian rule as a result of forced labor (largely for the purposes of rubber cultivation), massacre by colonial troops, famine and disease.[8]. In white settler colonies like Algeria, Kenya, Rhodesia (now Zimbabwe), South Africa and Southwest Africa (now Namibia), the most fertile lands were forcibly expropriated from the indigenous populations for use by white settlers.
African farmers were pushed onto "native reserves," usually located on arid, marginal lands. In German Southwest Africa, somewhere between 25,000 and 100,000 Hereros were killed either resisting land expropriation by white settlers, or by starvation in the desert where they were exiled. The legacy of these land expropriations remains in Africa today, as over 80% of the arable land in both South Africa and Namibia remains white-owned.[9]
Today, many African economies suffer from the legacy of colonialism. The utilitarian attitude of European countries toward their colonial possessions stopped them from building adequate infrastructure in Africa. In agriculture, the plantation systems that they introduced are highly unsustainable and cause severe environmental degradation. For example, cotton severely lowers soil fertility wherever it is grown, and areas of West Africa that are dominated by cotton plantations are now unable to switch to more profitable crops or even to produce food because or the depleted soil.
Recently, more countries have initiated programs to revert to traditional, sustainable forms of agriculture such as shifting cultivation and bush fallow in order to grow enough food to support the population while maintaining soil fertility to allow agriculture to continue in future generations
The implementation and effects of these colonial policies were, arguably, genocidal in a number of cases. Belgian government commissions in the 1920s, for example, found that the population of Belgian Congo had fallen by as much as 50%, or from roughly 20 million to 10 million people, under Belgian rule as a result of forced labor (largely for the purposes of rubber cultivation), massacre by colonial troops, famine and disease.[8]. In white settler colonies like Algeria, Kenya, Rhodesia (now Zimbabwe), South Africa and Southwest Africa (now Namibia), the most fertile lands were forcibly expropriated from the indigenous populations for use by white settlers.
African farmers were pushed onto "native reserves," usually located on arid, marginal lands. In German Southwest Africa, somewhere between 25,000 and 100,000 Hereros were killed either resisting land expropriation by white settlers, or by starvation in the desert where they were exiled. The legacy of these land expropriations remains in Africa today, as over 80% of the arable land in both South Africa and Namibia remains white-owned.[9]
Today, many African economies suffer from the legacy of colonialism. The utilitarian attitude of European countries toward their colonial possessions stopped them from building adequate infrastructure in Africa. In agriculture, the plantation systems that they introduced are highly unsustainable and cause severe environmental degradation. For example, cotton severely lowers soil fertility wherever it is grown, and areas of West Africa that are dominated by cotton plantations are now unable to switch to more profitable crops or even to produce food because or the depleted soil.
Recently, more countries have initiated programs to revert to traditional, sustainable forms of agriculture such as shifting cultivation and bush fallow in order to grow enough food to support the population while maintaining soil fertility to allow agriculture to continue in future generations
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