Africans Farmers, Will They Benefit From Low Crude Oil Prices
African farmers have for a long period of time been on the receiving end. Droughts, excessive rains, Poor market rates and high cost of production.
The African continent is arguably the richest continent in the world in terms of natural resources however, it has ragged behind for decades. Ranging from the huge oil reserves in the north African deserts and the diamonds in the central African nations to goldmines in south Africa we can say that all across we have vast resources. The political stability on the African soil is starting to take shape unlike in the late 60’s till late 90’s when most of the elections in the land ended up in civil unrest. We can’t forget the periods on war in the west Sierra Leone, Somalia, Sudan and many others the apartheid era of S.A where we saw the production going done across all sectors.
Having noted that its time for the middle class citizens of the African continents to start re berating themselves in all ways, un-healthy political stand offs, fear of investments, and wealth creation on valued added productions
We have seen a drop in the crude oils prices which is one of the most expensive commodities in the area and am hoping that the same will be reflecting to the small scale and medium production units thus factories benefiting from the low costs of production and distribution. The farmers for long, have hard to export their products to countries like Britain and France to have their products processed and repacked, only to go back to their grocery shelves at triple if not double the original prices. These has been characterized by major companies creating a monopolistic way of doing business across the continents, take a good example, Cocoa. Coco beans are produced by both large scale and small scale farmers in Ghana and Angola but the packing and processing of the same is done by big multinationals outside the countries and redistributed across the world. We have seen the same in tea and coffee estates in the East African regions and the death of some industries like leather tuning, sisal production making us pay expensively for good that we produce locally after they have been processed and re-branded.
The central African region which has the most untouched natural resources, poor governance, political instability and lack of knowledge has made the people from the region suffer in deep poverty for decades. Good infrastructure could not have been realized due to high cost of oils and their foreign exchanged earner could not have balanced the equations.
Having said that am looking at the new era in production and health competitions in different areas on production thus benefiting the African farmer who is always at the bottom of it all, even after taking care of the fields for long enough he ends up paying the most after the middle men have made their money, the governments have taxed the products and municipalities have levied the services.
The countries that produce oil have seen a tremendous developments and it’s time for them to slow down the development phase and third world and so called developing countries pick the pace and go the path where they belong. Countries like Nigeria have started to produce and consume local stuff thus sustaining the local economics and selling out the surplus.
The Kenyan market have seen a boom in many aspects including hospitality due to the tropical climate and real estate markets. Foreign investors who want to be a part of a vibrant economy, Termed as “the gateway to Africa”. Export of human resources have benefited the country gain considerably in ideas and solutions from abroad been brought back to the land. The banking sector has seen wide range of changes with transaction from almost every bank being done from a the mobile telephone platform.
As we look forward to a better continent lets hope that African economies will start production as the cost of doing so goes down.