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==Economy== {{Update|section|date=April 2021|reason=The most recent data in this section seems to be from 2015}} {{Main|Economy of Africa}} In the mid-2010s, private capital flew to sub-Saharan Africa{{snd}} primarily from members of [[BRICS]], private-sector investment portfolios, and remittances{{snd}} began to exceed official development assistance.<ref>{{cite web |last=Pugliese |first=Jessica |date=2 January 2014 |title=Rethinking Financing for Development in Sub-Saharan Africa |url=http://www.brookings.edu/blogs/africa-in-focus/posts/2014/01/02-financing-development-africa-sy |publisher=[[Brookings Institution]] |access-date=5 January 2014 |archive-date=6 January 2014 |archive-url=https://web.archive.org/web/20140106032119/http://www.brookings.edu/blogs/africa-in-focus/posts/2014/01/02-financing-development-africa-sy |url-status=live }}</ref> [[File:Johannesburg CBD.jpg|thumb|[[Johannesburg]]]] As of 2011, Africa is one of the fastest developing regions in the world. Six of the world's ten fastest-growing economies over the previous decade were situated below the Sahara, with the remaining four in East and Central Asia. According to the [[World Bank]], the economic growth rate in the region had risen to 4.7% in 2013. This continued rise was attributed to increasing investment in infrastructure and resources as well as steady expenditure per household.<ref>{{cite web |url=http://www.worldbank.org/en/news/press-release/2014/04/07/africas-growth-set-to-reach-52-percent-in-2014-with-strong-investment-growth-and-household-spending |title=Africa's impressive growth |publisher=World Bank |date=29 August 2014 |access-date=29 August 2014 |archive-date=1 September 2014 |archive-url=https://web.archive.org/web/20140901030052/http://www.worldbank.org/en/news/press-release/2014/04/07/africas-growth-set-to-reach-52-percent-in-2014-with-strong-investment-growth-and-household-spending |url-status=live }}</ref> In 2019, 424 million people in sub-Saharan Africa were reportedly living in severe poverty. In 2022, 460 million people—an increase of 36 million in only three years—were anticipated to be living in extreme poverty as a result of the [[COVID-19 pandemic]] and the [[Russian invasion of Ukraine]].<ref>{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/finance-in-africa-navigating-the-financial-landscape-in-turbulent-times |title=Finance in Africa - Navigating the financial landscape in turbulent times |date=19 October 2022 |publisher=European Investment Bank |isbn=978-92-861-5382-2 |language=EN }}</ref><ref>{{Cite web |title=Africa might have dodged a bullet, but systemic warnings abound for poverty reduction efforts on the continent |url=https://blogs.worldbank.org/developmenttalk/africa-might-have-dodged-bullet-systemic-warnings-abound-poverty-reduction-efforts |access-date=28 October 2022 |website=blogs.worldbank.org |date=28 September 2022 |language=en }}</ref><ref>{{Cite web |title=Extreme poverty rises in West Africa due to COVID-19 pandemic {{!}} World Food Programme |url=https://www.wfp.org/news/extreme-poverty-rises-west-africa-due-covid-19-pandemic |access-date=28 October 2022 |website=www.wfp.org |date=20 January 2022 |language=en }}</ref> Sub-Saharan Africa's [[government debt]] rose from 28% of [[gross domestic product]] in 2012 to 50% of gross domestic product in 2019. The COVID-19 pandemic caused it to rise to 57% of [[gross domestic product]] in 2021.<ref>{{Cite web |title=COVID-19 and Africa: Socio-economic implications and policy responses |url=https://www.oecd.org/coronavirus/policy-responses/covid-19-and-africa-socio-economic-implications-and-policy-responses-96e1b282/ |access-date=28 October 2022 |website=OECD |language=en }}</ref><ref>{{Cite web |title=For Sub-Saharan Africa, Coronavirus Crisis Calls for Policies for Greater Resilience |url=https://www.worldbank.org/en/region/afr/publication/for-sub-saharan-africa-coronavirus-crisis-calls-for-policies-for-greater-resilience |access-date=28 October 2022 |website=World Bank |language=en }}</ref><ref>{{Cite news |last=Mukhopadhyay |first=Abhijit |title=The Search for Sustainable Solutions to Debt Accumulation in Sub-Saharan Africa |url=https://www.orfonline.org/research/the-search-for-sustainable-solutions-to-debt-accumulation-in-sub-saharan-africa/ |access-date=28 October 2022 |website=ORF |language=en-US }}</ref> Sub-Saharan Africa was severely harmed when government revenue declined from 22% of GDP in 2011 to 17% in 2021. 15 African nations were (or are) at significant risk of debt, and 7 were (2021) in financial crisis according to the IMF.<ref>{{Cite web |title=Africa's Rapid Economic Growth Hasn't Fully Closed Income Gaps |url=https://www.imf.org/en/Blogs/Articles/2022/09/20/africas-rapid-economic-growth-hasnt-fully-closed-income-gaps |access-date=28 October 2022 |website=IMF |date=21 September 2022 |language=en }}</ref><ref>{{Cite web |title=Sub-Saharan Africa: Living on The Edge |url=https://www.imf.org/en/News/Articles/2022/10/13/pr22349-sub-saharan-africa-living-on-the-edge |access-date=28 October 2022 |website=IMF |language=en }}</ref><ref>{{Cite web |title=Growing Together The IMF and African Low-Income Countries |url=https://www.imf.org/en/Publications/fandd/issues/2021/12/Africa-Low-Income-Countries |access-date=28 October 2022 |website=IMF |language=en }}</ref> The region went on to receive IMF [[Special Drawing Rights]] of $23 billion in 2021 to assist critical public spending.<ref>{{Cite web |title=Sub-Saharan Africa: A New Shock and Little Room to Maneuver |url=https://www.imf.org/en/News/Articles/2022/04/28/pr22133-sub-saharan-africa-a-new-shock-and-little-room-to-maneuver |access-date=28 October 2022 |website=IMF |language=en }}</ref> ===Energy and power=== {{Main|Mineral industry of Africa}} {| class="wikitable sortable" style="float:right; font-size:80%;" |+ Oil production by country <br />(with other key actors of African or oil economy) |- ! Rank || Area || bb/day || Year || Like... |- ! _ || W: World || 85,540,000 || 2007 est. || |- | 01 || E: Russia || 9,980,000 || 2007 est. || |- | 02 || Ar: Saudi Arb || 9,200,000 || 2008 est. || |- | 04 || As: Libya || 4,725,000 || 2008 est. || Iran |- | 10 || Af: Nigeria || 2,352,000 || 2011 est. || Norway |- | 15 || Af: Algeria || 2,173,000 || 2007 est. || |- | 16 || Af: Angola || 1,910,000 || 2008 est. || |- | 17 || Af: Egypt || 1,845,000 || 2007 est. || |- | 27 || Af: Tunisia || 664,000 || 2007 est. || Australia |- | 31 || Af: Sudan || 466,100 || 2007 est. || Ecuador |- | 33 || Af: Eq.Guinea || 368,500 || 2007 est. || Vietnam |- | 38 || Af: DR Congo || 261,000 || 2008 est. |- | 39 || Af: Gabon || 243,900 || 2007 est. || |- | 40 || Af: Sth Africa || 199,100 || 2007 est. || |- | 45 || Af: Chad || 156,000 || 2008 est. || Germany |- | 53 || Af: Cameroon || 87,400 || 2008 est. || France |- | 56 || E: France || 71,400 || 2007 || |- | 60 || Af: Ivory Coast || 54,400 || 2008 est. || |- ! _ || Af: Africa || 10,780,400 || 2011 || Russia |- ! colspan="5"| Source: [https://www.cia.gov/library/publications/the-world-factbook/rankorder/2173rank.html CIA.gov] {{Webarchive|url=https://web.archive.org/web/20120512233445/https://www.cia.gov/library/publications/the-world-factbook/rankorder/2173rank.html |date=12 May 2012 }}, World Facts Book > Oil exporters. |} [[File:Sub-Saharan Africa electricity generation mix (2005-2015) (30010633237).png|thumb|Energy sources in sub-Saharan Africa. Fossil fuels and hydroelectric power make up the largest share of sub-Saharan African electricity.]] {{As of|2009}}, 50% of Africa was rural with no access to electricity. In 2021, Africa generated 889 TWh of electricity, amounting to 3.13% of the global market share.<ref>{{Cite web |title=Electricity Production Data {{!}} World Electricity Statistics {{!}} Enerdata |url=https://yearbook.enerdata.net/electricity/world-electricity-production-statistics.html |access-date=19 February 2023 |website=yearbook.enerdata.net |language=en }}</ref> Many countries were (as of 2009) affected by power shortages.<ref>{{cite news |author1=Creamer Media Reporter |title=Africa's energy problems threatens growth, says Nepad CEO |url=http://www.engineeringnews.co.za/article/africas-energy-problems-threatens-growth-says-nepad-ceo-2009-11-12 |website=www.engineeringnews.co.za |publisher=Engineering News |access-date=14 October 2015 |archive-url=https://web.archive.org/web/20130604035047/http://www.engineeringnews.co.za/article/africas-energy-problems-threatens-growth-says-nepad-ceo-2009-11-12 |archive-date=4 June 2013 |date=12 November 2009 }}</ref> The percentage of residences with access to electricity in sub-Saharan Africa is the lowest in the world. In some remote regions, fewer than one in every 20 households has electricity.<ref name=":172">{{Cite web |title=Access to energy is Africa development key |url=https://www.eib.org/en/stories/africa-energy-access |access-date=7 June 2021 |website=European Investment Bank |language=en }}</ref><ref>{{Cite web |title=Access to electricity – SDG7: Data and Projections – Analysis |url=https://www.iea.org/reports/sdg7-data-and-projections/access-to-electricity |access-date=7 June 2021 |website=IEA |language=en-GB }}</ref><ref>{{Cite news |date=13 November 2019 |title=More than half of sub-Saharan Africans lack access to electricity |newspaper=The Economist |url=https://www.economist.com/graphic-detail/2019/11/13/more-than-half-of-sub-saharan-africans-lack-access-to-electricity |access-date=7 June 2021 |issn=0013-0613 }}</ref>[[File:Greater Cape Town 12.02.2007 16-41-31.2007 16-41-33.JPG|thumb|The [[Athlone Power Station]] in [[Cape Town]], South Africa ]] Because of rising prices in commodities such as coal and oil, thermal sources of energy are proving to be too expensive for power generation. Sub-Saharan Africa has the potential to generate 1,750 TWh of energy, of which only 7% has been explored. The failure to exploit its full energy potential is largely due to significant underinvestment, as at least four times as much (approximately $23 billion a year) <!--something missing here, such as "could be generated"?-->and what is currently spent is invested in operating high cost power systems and not on expanding the infrastructure.<ref name="ODI1">Christian K.M. Kingombe 2011. [http://www.odi.org.uk/resources/details.asp?id=5666&title=latin-america-medellin-colombia-microfinance-post-washington-consensus-microcredit-microenterprise-local-development Mapping the new infrastructure financing landscape] {{webarchive|url=https://web.archive.org/web/20120918135821/http://www.odi.org.uk/resources/details.asp?id=5666&title=latin-america-medellin-colombia-microfinance-post-washington-consensus-microcredit-microenterprise-local-development|date=18 September 2012}}. London: [[Overseas Development Institute]]</ref> African governments are taking advantage of the readily available water resources to broaden their energy mix. Hydro Turbine Markets in sub-Saharan Africa generated revenues of $120.0 million in 2007 and was estimated to reach $425.0 million.{{when|date=February 2013}} Asian countries, notably China, India, and Japan, are playing an active role in power projects across the African continent. The majority of these power projects are hydro-based because of China's vast experience in the construction of hydro-power projects and part of the Energy & Power Growth Partnership Services programme.<ref>{{cite web |url=http://us-cdn.creamermedia.co.za/assets/articles/attachments/19642_frost.pdf |title=Creamer Media |publisher=Us-cdn.creamermedia.co.za |access-date=29 September 2015 |archive-date=7 August 2020 |archive-url=https://web.archive.org/web/20200807155204/http://us-cdn.creamermedia.co.za/assets/articles/attachments/19642_frost.pdf |url-status=live }}</ref> With electrification numbers, sub-Saharan Africa with access to the Sahara and being in the tropical zones has massive potential for solar [[photovoltaic]] electrical potential.<ref>{{Cite web |date=24 March 2006 |title=Nuclear Vs Solar Energy, Which? |url=https://www.redorbit.com/news/science/441990/nuclear_vs_solar_energy_which/ |access-date=12 February 2023 |archive-url=https://web.archive.org/web/20130520151340/http://www.redorbit.com/news/science/441990/nuclear_vs_solar_energy_which |archive-date=20 May 2013 |url-status=live |website=Redorbit |language=en-US }}</ref> Six hundred million people could be served with electricity based on its photovoltaic potential.<ref>{{Cite web |last=Zych |first=Ariel |title=Blog: Battle of the Bots |url=https://www.sciencefriday.com/educational-resources/blog-battle-of-the-bots/ |access-date=12 February 2023 |archive-url=https://web.archive.org/web/20200728170705/https://www.sciencefriday.com/educational-resources/blog-battle-of-the-bots/?%2Farchives%2F306-Could-Africa-Leapfrog-The-U_S_-In-Solar-Power_html |archive-date=28 July 2020 |url-status=live |website=Science Friday |language=en-US }}</ref>{{failed verification|date=May 2023}} In 2003, China promised to train 10,000 technicians from Africa and other developing countries in the use of solar energy technologies over the next five years. Training African technicians to use solar power is part of the China-Africa science and technology cooperation agreement signed by Chinese science minister [[Xu Guanhua]] and African counterparts during premier Wen Jiabao's visit to Ethiopia in December 2003.<ref>{{cite web |author=Hepeng, Jia |url=http://www.scidev.net/en/news/china-to-train-developing-nations-in-solar-technol.html |title=China to train developing nations in solar technologies |website=scidev.net |date=20 August 2004 |access-date=14 November 2009 |archive-date=3 November 2009 |archive-url=https://web.archive.org/web/20091103125239/http://www.scidev.net/en/news/china-to-train-developing-nations-in-solar-technol.html |url-status=live }}</ref> The [[New Partnership for Africa's Development]] (NEPAD) is developing an integrated, continent-wide energy strategy. This has been funded by, amongst others, the [[African Development Bank]] (AfDB) and the EU-Africa Infrastructure Trust Fund. These projects must be sustainable, involve a cross-border dimension and/or have a regional impact, involve public and private capital, contribute to poverty alleviation and economic development, and involve at least one country in sub-Saharan Africa.<ref name=ODI1/> Renewable Energy Performance Platform was established by the [[European Investment Bank]] and the [[United Nations Environment Programme]] with a five-year goal of improving energy access for at least two million people in sub-Saharan Africa. It has so far<!--???--> invested around $45 million to renewable energy projects in 13 countries in sub-Saharan Africa. [[Solar power]] and [[hydropower]] are among the energy methods used in the projects.<ref name=":172"/><ref>{{Cite web |title=About {{!}} Renewable Energy Performance Platform (REPP) |url=https://repp.energy/about-repp/ |access-date=7 June 2021 |website=REPP |language=en }}</ref> ===Media=== In 2007, Radio was the major source of information in sub-Saharan Africa.<ref name="gallup.com">{{Cite web |last=English |first=Cynthia |date=23 June 2008 |title=Radio the Chief Medium for News in Sub-Saharan Africa |url=https://news.gallup.com/poll/108235/Radio-Chief-Medium-News-SubSaharan-Africa.aspx |access-date=12 February 2023 |archive-url=https://web.archive.org/web/20091117032536/http://www.gallup.com/poll/108235/Radio-Chief-Medium-News-SubSaharan-Africa.aspx |archive-date=17 November 2009 |url-status=live |website=Gallup.com |language=en }}</ref> Average coverage stands at more than a third of the population. Countries such as [[Gabon]], [[Seychelles]], and [[South Africa]] boast almost 100% penetration. Only five countries—Burundi, [[Djibouti]], [[Eritrea]], [[Ethiopia]], and [[Somalia]]—still have a penetration of less than 10%. [[Broadband|Broadband penetration]] outside of South Africa has been limited where it is exorbitantly expensive.<ref>{{Cite web |date=23 October 2009 |title=Africa calling: Cellphone usage sees record rise |url=https://mg.co.za/article/2009-10-23-africa-calling-cellphone-usage-sees-record-rise/ |access-date=12 February 2023 |archive-url=https://web.archive.org/web/20091025130318/http://www.mg.co.za/article/2009-10-23-africa-calling-cellphone-usage-sees-record-rise |archive-date=25 October 2009 |url-status=live |website=The Mail & Guardian |language=en-ZA }}</ref><ref>Aker, Jenny C.(2008). [http://www.cgdev.org/files/894409_file_Aker_Cell_Phone_Niger.pdf "Can You Hear Me Now?"How Cell Phones are Transforming Markets in Sub-Saharan Africa] {{webarchive |url=https://web.archive.org/web/20160304030321/http://www.cgdev.org/files/894409_file_Aker_Cell_Phone_Niger.pdf |date=4 March 2016}}, Center for Global Development.</ref> Access to the internet via cell phones is on the rise.<ref>{{cite web |url=http://www.mg.co.za/article/2009-12-23-africa-sees-massive-growth-in-mobile-web-usage |title=MG.co.za |publisher=MG.co.za |date=23 December 2009 |access-date=27 December 2009 |archive-date=26 December 2009 |archive-url=https://web.archive.org/web/20091226035646/http://www.mg.co.za/article/2009-12-23-africa-sees-massive-growth-in-mobile-web-usage |url-status=live }}</ref> Television is the second major source of information.<ref name="gallup.com"/> Because of power shortages, the spread of television viewing has been limited. Eight per cent have television, a total of 62 million. Those in the television industry view the region as an untapped green market. Digital television and pay for service are on the rise.<ref>{{Cite news |last=Pfanner |first=Eric |date=6 August 2007 |title=Competition increases for pay TV in sub-Saharan Africa |language=en-US |work=The New York Times |url=https://www.nytimes.com/2007/08/06/technology/06iht-web-africa.6996947.html |access-date=12 February 2023 |issn=0362-4331 }}</ref> ===Oil and minerals=== [[File:Phenakite-262068.jpg|thumb|[[Phenakite]] from the [[Jos Plateau]], [[Plateau State]], Nigeria ]] The region is a major exporter to the world of [[gold]], [[uranium]], [[chromium]], [[vanadium]], [[antimony]], [[coltan]], [[bauxite]], [[iron ore]], [[copper]], and [[manganese]]. South Africa, along with [[Gabon]] and [[Ghana]], collectively supplies over 60% of global [[manganese]], and is also a major exporter of [[chromium]].<ref>{{cite web |url=http://minerals.usgs.gov/minerals/pubs/commodity/manganese/mcs-2009-manga.pdf |title=Manganese |author=Lisa A. Corathers |publisher=Minerals.usgs.gov |access-date=19 October 2015 |date=January 2009 |quote=Land-based manganese resources are large but irregularly distributed; those of the United States are very low grade and have potentially high extraction costs. South Africa accounts for about 80% of the world's identified manganese resources, and Ukraine accounts for 10%. |archive-date=4 March 2016 |archive-url=https://web.archive.org/web/20160304000853/http://minerals.usgs.gov/minerals/pubs/commodity/manganese/mcs-2009-manga.pdf |url-status=live }}</ref><ref name="auto">{{Cite web |last1=Chen |first1=Wenjie |last2=Laws |first2=Athene |last3=Valckx |first3=Nico |title=Harnessing Sub-Saharan Africa's Critical Mineral Wealth |url=https://www.imf.org/en/News/Articles/2024/04/29/cf-harnessing-sub-saharan-africas-critical-mineral-wealth |access-date=13 May 2024 |website=IMF |language=en }}</ref> A 2001 estimate is that 42% of the world's reserves of chromium may be found in South Africa.<ref>{{cite web |url=http://minerals.usgs.gov/minerals/pubs/commodity/chromium/chromyb01.pdf |title=Chromium |author=John F. Papp |work=U.S. Geological Survey Minerals Yearbook |publisher=Minerals.usgs.gov |access-date=19 October 2015 |date=2001 |quote=About 42% of world reserves and about 75% of the world reserve base are located in South Africa. |archive-date=10 September 2015 |archive-url=https://web.archive.org/web/20150910071339/http://minerals.usgs.gov/minerals/pubs/commodity/chromium/chromyb01.pdf |url-status=live }}</ref> South Africa is the largest producer of [[platinum]], with 80% of the total world's annual mine production and 88% of the world's platinum reserve.<ref>{{cite web |url=http://www.gold-eagle.com/analysis/platinum.html |title=Platinum: The Rich Man's Gold |author=Vronsky |publisher=Gold-Eagle.com |date=1 May 1997 |access-date=19 October 2015 |archive-date=12 March 2013 |archive-url=https://web.archive.org/web/20130312083344/http://www.gold-eagle.com/analysis/platinum.html |url-status=live }}</ref> Sub-Saharan Africa produces 33% of the world's bauxite, with Guinea as the major supplier.<ref>{{cite web |url=http://minerals.usgs.gov/minerals/pubs/commodity/bauxite/mcs-2009-bauxi.pdf |title=Bauxite and Alumina |author=E. Lee Bray |work=U.S. Geological Survey, Mineral Commodity Summaries |publisher=Minerals.usgs.gov |access-date=29 September 2015 |date=January 2009 |archive-date=24 November 2018 |archive-url=https://web.archive.org/web/20181124162211/https://minerals.usgs.gov/minerals/pubs/commodity/bauxite/mcs-2009-bauxi.pdf |url-status=live }}</ref> Zambia is a major producer of copper.<ref>{{cite web |url=http://minerals.usgs.gov/minerals/pubs/commodity/copper/mcs-2009-coppe.pdf |title=Copper |author=Daniel L. Edelstein |work=U.S. Geological Survey, Mineral Commodity Summaries |publisher=Minerals.usgs.gov |access-date=19 October 2015 |date=January 2009 |archive-date=4 March 2016 |archive-url=https://web.archive.org/web/20160304195020/http://minerals.usgs.gov/minerals/pubs/commodity/copper/mcs-2009-coppe.pdf |url-status=live }}</ref> The Democratic Republic of Congo is a major source of coltan. Production from DR Congo is very small, but the country has 80% of the proven reserves in Africa, which are 80% of those worldwide.<ref>{{cite web |url=http://works.bepress.com/cgi/viewcontent.cgi?article=1000&context=maheta_molango |title=From the SelectedWorks of Maheta Matteo: From "Blood Diamond" to "Blood Coltan": Should International Corporations Pay the Price for the Rape of the DR Congo? |publisher=Works.bepress.com |access-date=29 September 2015 |archive-date=30 September 2015 |archive-url=https://web.archive.org/web/20150930161435/http://works.bepress.com/cgi/viewcontent.cgi?article=1000&context=maheta_molango |url-status=dead }}</ref> Sub-Saharan Africa is a major producer of gold, producing up to 30% of global production. Major suppliers are South Africa, Ghana, Zimbabwe, Tanzania, Guinea, and Mali. South Africa had been first in the world in terms of gold production since 1905, but in 2007 it moved to second place, according to GFMS, the precious metals consultancy.<ref>{{cite web |url=http://www.mbendi.com/indy/ming/gold/af/p0005.htm |title=MBendi.com |publisher=MBendi.com |access-date=20 December 2009 |archive-url=https://web.archive.org/web/20060510010411/http://www.mbendi.com/indy/ming/gold/af/p0005.htm |archive-date=10 May 2006 |url-status=dead }}</ref> Uranium is major commodity from the region. Significant suppliers are Niger, Namibia, and South Africa. Namibia was the number one supplier from sub-Saharan Africa in 2008.<ref>{{cite web |url=http://www.world-nuclear.org/info/inf23.html |title=World-Nuclear.org |publisher=World-Nuclear.org |access-date=20 December 2009 |archive-date=26 June 2010 |archive-url=https://web.archive.org/web/20100626071100/http://www.world-nuclear.org/info/inf23.html |url-status=live }}</ref> The region produces 49% of the world's [[diamonds]]. Sub-Saharan Africa has been the focus of an intense race for oil by the West, China, India, and other emerging economies, even though it holds only 10% of proven oil reserves, less than the Middle East. This race has been referred to as the second [[Scramble for Africa]]. All reasons for this global scramble come from the reserves' economic benefits. Transportation cost is low and no pipelines have to be laid as in Central Asia. Almost all reserves are offshore, so political turmoil within the host country will not directly interfere with operations. Sub-Saharan oil is viscous, with a very low sulfur content. This quickens the refining process and effectively reduces costs. New sources of oil are being located in sub-Saharan Africa more frequently than anywhere else. Of all new sources of oil, {{frac|1|3}} are in sub-Saharan Africa.<ref>Ghazvinian, John (2008). Untapped: The Scramble for Africa's Oil. Houghton Mifflin Harcourt, pp. 1–16, {{ISBN|978-0-15-603372-5}}.</ref> Sub-Saharan Africa is a key player in the global [[mineral]]s market, producing over 70%of the world's [[cobalt]] and hosting about 50%of its reserves in the [[Democratic Republic of the Congo]] (DRC). The region also harbors significant [[lithium]] deposits in [[Zimbabwe]], the DRC, and [[Mali]].<ref name="auto"/> ===Agriculture=== [[File:Rwanda GV5 lo (4108942310).jpg|thumb|Agricultural fields in [[Rwanda]]'s [[Eastern Province, Rwanda|Eastern Province]] ]] Sub-Saharan Africa has more variety of grains than anywhere in the world. Between 13,000 and 11,000 BCE wild grains began to be collected as a source of food in the cataract region of the Nile, south of Egypt. The collecting of wild grains as source of food spread to Syria, parts of Turkey, and Iran by the eleventh millennium BCE. By the tenth and ninth millennia southwest Asians domesticated their wild grains, wheat, and barley after the notion of collecting wild grains spread from the Nile.<ref name="The Civilization of Africa">[[Christopher Ehret]], (2002). The Civilization of Africa. University of Virginia Press: Charlottesville, p. 98, {{ISBN|0-8139-2085-X}}.</ref> Numerous crops have been domesticated in the region and spread to other parts of the world. These crops included [[sorghum]], [[castor beans]], [[coffee]], [[cotton]],<ref name="Cotton of Kush">Vandaveer, Chelsie(2006). [http://www.killerplants.com/plants-that-changed-history/20020226.asp What was the cotton of Kush?] {{webarchive|url=https://web.archive.org/web/20100114155727/http://www.killerplants.com/plants-that-changed-history/20020226.asp |date=14 January 2010 }} KillerPlants.com, Plants That Change History Archive.</ref> [[okra]], [[black-eyed peas]], [[watermelon]], [[gourd]], and pearl [[millet]]. Other domesticated crops included [[teff]], [[enset]], [[African rice]], [[Yam (vegetable)|yams]], [[kola nut]]s, [[Elaeis guineensis|oil palm]], and [[raffia palm]].<ref name="The Civilization of Africa"/><ref>National Research Council (U.S.). Board on Science and Technology for International Development (1996). Lost Crops of Africa: Grains. National Academy Press, {{ISBN|978-0-309-04990-0}}.</ref> Domesticated animals include the [[guinea fowl]] and the [[donkey]]. [[File:2011-02-07 IMG 08.JPG|thumb|left|The Naute Fruit Farm at the [[Naute Dam]] outside of [[Keetmanshoop]], Namibia ]] Agriculture represents 20% to 30% of GDP and 50% of exports. In some cases, 60% to 90% of the labor force are employed in agriculture.<ref>{{cite web |url=http://worlddefensereview.com/pham110309.shtml |title=WorldDefenseReview.com |publisher=WorldDefenseReview.com |access-date=13 November 2009 |archive-date=7 November 2009 |archive-url=https://web.archive.org/web/20091107215711/http://worlddefensereview.com/pham110309.shtml |url-status=live }}</ref> Most agricultural activity is subsistence farming. This has made agricultural activity [[Climate change vulnerability|vulnerable to climate change]] and global warming. As of right now Sub-Saharan Africa has degraded land covering one million square kilometres.<ref>{{Cite web |url=https://www.researchgate.net/publication/344142265 |title=Large scale land investments, household displacement and the effect on land degradation in semiarid agro-pastoral areas of Ethiopia }}</ref> Biotechnology has been advocated to create high yield, pest and environmentally resistant crops in the hands of small farmers. The [[Bill and Melinda Gates Foundation]] is a strong advocate and donor to this cause. Biotechnology and GM crops have met resistance both by natives and environmental groups. Cash crops include cotton, coffee, tea, cocoa, sugar, and tobacco.<ref name="Africa South of the Sahara">Bowden, Rob (2007). Africa South of the Sahara. Coughlan Publishing: p. 37, {{ISBN|1-4034-9910-1}}.</ref> The [[OECD]] says Africa has the potential to become an agricultural superbloc if it can unlock the wealth of the savannahs by allowing farmers to use their land as collateral for credit.<ref>{{cite web |last=Evans |first=Ambrose |url=http://tradeafrica.blogspot.com/2009/10/middle-east-and-africa-bear-untold.html |title=Blogspot.com |publisher=Tradeafrica.blogspot.com |date=12 October 2009 |access-date=15 November 2009 |archive-date=25 May 2014 |archive-url=https://web.archive.org/web/20140525214300/http://tradeafrica.blogspot.com/2009/10/middle-east-and-africa-bear-untold.html |url-status=live }}</ref> There is such international interest in sub-Saharan agriculture, that the World Bank increased its financing of African agricultural programs to $1.3 billion in the 2011 fiscal year.<ref>{{cite web |title=Africa Regional Brief |work=[[World Bank]] |url=http://www.saylor.org/site/wp-content/uploads/2012/05/polsc325-4.1-Africa-Regional-Brief.pdf |access-date=7 May 2012 |archive-date=25 May 2014 |archive-url=https://web.archive.org/web/20140525233137/http://www.saylor.org/site/wp-content/uploads/2012/05/polsc325-4.1-Africa-Regional-Brief.pdf |url-status=live }}</ref> Recently, there has been a trend to purchase large tracts of land in sub-Sahara for agricultural use by developing countries.<ref name="Monthly-Review-51-03-Saul-Leys">{{Cite journal |last1=Saul |first1=John J. |last2=Leys |first2=Colin |date=1 July 1999 |title=Sub-Saharan Africa in Global Capitalism |url=https://monthlyreview.org/1999/07/01/sub-saharan-africa-in-global-capitalism/ |journal=[[Monthly Review]] |language=en-US |volume=51 |issue=3 |archive-url=https://web.archive.org/web/20140531194911/http://monthlyreview.org/2013/11/01/twenty-first-century-land-grabs |archive-date=31 May 2014 |access-date=12 February 2023 }}</ref><ref name="Monthly-Review-Magdoff-65-06">{{Cite journal |last=Magdoff |first=Fred |date=1 November 2013 |title=Twenty-First-Century Land Grabs: Accumulation by Agricultural Dispossession |url=https://monthlyreview.org/2013/11/01/twenty-first-century-land-grabs/ |journal=[[Monthly Review]] |language=en-US |volume=65 |issue=6 |doi=10.14452/MR-065-06-2013-10_1 |s2cid=144627886 |archive-url=https://web.archive.org/web/20140531194911/http://monthlyreview.org/2013/11/01/twenty-first-century-land-grabs |archive-date=31 May 2014 |access-date=12 February 2023 }}</ref> Early in 2009, [[George Soros]] highlighted a new farmland buying frenzy caused by growing population, scarce water supplies and climate change. Chinese interests bought up large swathes of Senegal to supply it with sesame. Aggressive moves by China, South Korea, and Gulf states to buy vast tracts of agricultural land in sub-Saharan Africa could soon be limited by a new global international protocol.<ref>{{cite news |url=https://www.theguardian.com/business/2009/nov/02/global-protocol-subsahara-land-grab |work=The Guardian |location=London |title=Global protocol could limit Sub-Saharan land grab |first=Nick |last=Mathiason |date=2 November 2009 |access-date=9 April 2010 |archive-date=8 September 2013 |archive-url=https://web.archive.org/web/20130908055736/http://www.theguardian.com/business/2009/nov/02/global-protocol-subsahara-land-grab |url-status=live }}</ref> === Low productivity of subsistance farmers === Compared to South America and Asia, Sub-Saharan Africa has experienced persistently low crop yield productivity for more than 50 years.<ref>{{cite journal |title=Recent patterns of crop yield growth and stagnation |journal=Nature Communications |date=2012 |volume=3 |page=1293|doi=10.1038/ncomms2296 |pmid=23250423 |last1=Ray |first1=Deepak K. |last2=Ramankutty |first2=Navin |last3=Mueller |first3=Nathaniel D. |last4=West |first4=Paul C. |last5=Foley |first5=Jonathan A. |bibcode=2012NatCo...3.1293R }}</ref> As mentioned above, one factor influencing low productivity might be low access to credit studies. Many studies have focused on factors such as access to credit,<ref>{{cite journal |title=Time versus state in insurance: Experimental evidence from contract farming in Kenya. |journal=American Economic Review |date=2018 |volume=108 |issue=12 |pages=3778–3813|doi=10.1257/aer.20171526 |url=https://www.zora.uzh.ch/id/eprint/159985/1/Time_versus_State_Casaburi.pdf |last1=Casaburi |first1=Lorenzo |last2=Willis |first2=Jack }}</ref> and [[time preference]]s<ref>{{cite journal |title=Nudging farmers to use fertilizer: Theory and experimental evidence from Kenya. |journal=American Economic Review |date=2011 |volume=101 |issue=6 |pages=2350–2390|doi=10.1257/aer.101.6.2350 |url=http://www.nber.org/papers/w15131.pdf |last1=Duflo |first1=Esther |last2=Kremer |first2=Michael |last3=Robinson |first3=Jonathan }}</ref> as key explanations for low productivity of small farmers in Sub-Saharan Africa. However, recent studies have explored an alternative mechanism: quality of agricultural inputs.<ref>{{cite journal |title=re Ugandan farmers using the right quality inorganic fertilizers? |journal=Policy Brief: AGRA and the Ugandan Ministry of Agriculture. |date=2015 |url=https://elibrary.acbfpact.org/acbf/collect/acbf/index/assoc/HASH0151/7bc5e90f/6ea93be2/0406.dir/Uganda%20Farmers.pdf}}</ref> Indeed, usage of high-quality inputs, such as seeds and fertiliser, would substantially increase productivity of [[Subsistence agriculture|subsistance farmers]].<ref>{{cite journal |title=Ten striking facts about agricultural input use in Sub- Saharan Africa. |journal=Food Policy |date=2017 |volume=67 |pages=12–25|doi=10.1016/j.foodpol.2016.09.010 |pmid=28413243 |pmc=5384438 |last1=Sheahan |first1=Megan |last2=Barrett |first2=Christopher B. }}</ref> However, there is a small take up rate of this product by farmers, despite acknowledging their benefits. ==== Structure of the agricultural market ==== First, it is important to explain the structure of the agricultural input market in countries of the Sub-Saharan Africa. The majority of seeds and fertilizers are traded informally, often of uncertain quality, either exchanged between farmers or reused from previous harvests, in the case of seeds.<ref name="Lemon technologies and adoption: Me">{{cite journal |title=Lemon technologies and adoption: Measurement, theory, and evidence from agricultural markets in Uganda. |journal=Quarterly Journal of Economics |date=2017 |volume=132|issue=3 |pages=1055–1100 |doi=10.1093/qje/qjx009 |last1=Bold |first1=Tessa |last2=Kaizzi |first2=Kayuki C. |last3=Svensson |first3=Jakob |last4=Yanagizawa-Drott |first4=David }}</ref> Only a small number of farmers purchase inputs from the formal market, which is generally considered to offer higher-quality products. We can illustrate this with the example of the Nigerian stem market. Indeed, only 1% of the stems sold in the Nigerian market are certified, while the remaining 99% are traded informally—either as recycled stems from local varieties or as uncertified stems derived from previously improved varieties.<ref>{{cite journal |title=Estimating seed demand in the presence of market frictions: Evidence from an auction experiment in Nigeria. |journal=Journal of Development Economics |date=2024 |volume=167 |page=103242|doi=10.1016/j.jdeveco.2023.103242 |pmid=38434593 |last1=Wossen |first1=T. |last2=Spielman |first2=D. J. |last3=Alene |first3=A. D. |last4=Abdoulaye |first4=T. |pmc=10831485 }}</ref> ==== Uncertainty about quality of agricultural inputs ==== Recent studies explain that farmers mistrust the quality of fertilisers and seeds sold in the formal market.<ref name="Lemon technologies and adoption: Me"/> The study realized in Uganda<ref name="Lemon technologies and adoption: Me"/> infers quality across fertilizer and hybrid seeds varies significantly due to adulteration: sellers tend to mix the fertilizer with poor soil. However, one study realized in Tanzania<ref>{{cite journal |title=Misperceived quality: Fertilizer in Tanzania. |journal=Journal of Development Economics |date=2021 |volume=148|doi=10.1016/j.jdeveco.2020.102579 |url=https://figshare.com/articles/journal_contribution/23478044 |last1=Michelson |first1=Hope |last2=Fairbairn |first2=Anna |last3=Ellison |first3=Brenna |last4=Maertens |first4=Annemie |last5=Manyong |first5=Victor }}</ref> finds no adulteration in agricultural inputs, but do find that visual appearance of input sold in the formal market is degraded. Whether one study or the other is correct, both papers highlight uncertainty about fertilizer's quality, thus generating mistrust among farmers and consequently generates a low take-up rate. Another factor highlighting uncertainty about quality is the presence of relatively homogenous pricing among different quality of the same inputs.<ref>{{cite journal |title=Misperceived quality: Fertilizer in Tanzania. |journal=Journal of Development Economics |date=2021 |volume=148|doi=10.1016/j.jdeveco.2020.102579 |url=https://figshare.com/articles/journal_contribution/23478044 |last1=Michelson |first1=Hope |last2=Fairbairn |first2=Anna |last3=Ellison |first3=Brenna |last4=Maertens |first4=Annemie |last5=Manyong |first5=Victor }}</ref> While in most markets price is a good indicator of quality.<ref>{{cite journal |title=Price as an indicator of quality: Report on an enquiry |journal=Economica |series=New Series |date=1966 |volume=33 |issue=129 |jstor=2552272 |url=https://www.jstor.org/stable/2552272 |last1=Gabor |first1=André |last2=Granger |first2=C. W. J. |pages=43–70 |doi=10.2307/2552272 }}</ref> the higher the quality, the higher the price- , in this case, uniform pricing prevents farmers from using price as a signal of input quality. Consequently, the inability of farmers to infer the quality, either through physical appearance or price, creates [[Information asymmetry|asymmetric information]] in the market, leading an inefficient market.<ref name="Lemon technologies and adoption: Me"/> Some papers have tried to understand why sellers do not simply charge higher prices when they offer high-quality seeds and fertilizers,<ref name="Lemon technologies and adoption: Me"/> using a [[Bayesian inference|Bayesian learning model]].<ref>{{cite journal |last1=Jovanovic |first1=B. |last2=Nyarko |first2=Y. |title=A Bayesian learning model fitted to a variety of empirical learning curves |journal=Brookings Papers on Economic Activity: Microeconomics |date=1995 |pages=247–305 |doi=10.2307/2534775 |jstor=2534775|url=https://www.brookings.edu/wp-content/uploads/1995/01/1995_bpeamicro_jovanovic.pdf }}</ref> It is challenging for a company to sell high-quality inputs at a [[Premium pricing|premium price]] and build a reputation in the long term, meaning that farmers will trust the seller regarding the quality of its products. Indeed, as farmers are highly suspicious -due to fear of being scammed- their [[willingness to pay]] for high-quality products is very low. So even if the firm sells high-quality products, it will take too long for farmers to start trusting the firm, and for the seller to become profitable.<ref name="Estimating seed demand in the prese">{{cite journal |title=Estimating seed demand in the presence of market frictions: Evidence from an auction experiment in Nigeria. |journal=Journal of Development Economics |date=2024 |volume=167 |page=103242|doi=10.1016/j.jdeveco.2023.103242 |last1=Wossen |first1=Tesfamicheal |last2=Spielman |first2=David J. |last3=Alene |first3=Arega D. |last4=Abdoulaye |first4=Tahirou |pmid=38434593 |pmc=10831485 }}</ref> ==== Policy recommendation ==== The literature advises to actually improve farmers perception of true quality itself, and not to improve the quality of the products which already meet the standards.<ref name="Estimating seed demand in the prese"/> This can be done by providing more information about inputs quality, how they should look like, where they come from, making firms more reliable.<ref name="Estimating seed demand in the prese"/> That would allow more companies to enter the market and sell formally higher inputs, instead of farmers using their own seed or using seed of unknown quality bought in informal markets.
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