Economic Geography: Resources, Agriculture, and Emerging Markets

Africa's economic geography combines vast natural wealth with development challenges, creating a continent of contrasts where subsistence farmers coexist with tech entrepreneurs, where extreme poverty neighbors resource wealth, and where rapid growth occurs alongside persistent inequality.

Mineral resources dominate many African economies but create complex development dynamics. The Copperbelt spanning Zambia and the Democratic Republic of Congo produces much of the world's copper and cobalt, essential for electric vehicles. South Africa's Witwatersrand Basin yielded 40% of all gold ever mined. Botswana's diamonds transformed it from one of the poorest countries at independence to upper-middle-income status. Ghana and Mali continue the region's millennia-old gold mining tradition. Yet the "resource curse" affects many countries - Nigeria's oil wealth correlates with increased poverty and corruption, the DRC's minerals fuel conflict, and Equatorial Guinea shows how resource wealth doesn't guarantee broad development. China's growing involvement in African mining, trading infrastructure for resources, reshapes economic relationships but raises concerns about new forms of dependency.

Agriculture employs 60% of Africa's workforce but contributes only 15% of GDP, highlighting low productivity that traps millions in poverty. Smallholder farms averaging 1.6 hectares produce 80% of Africa's food using mainly rain-fed agriculture vulnerable to climate variability. Cash crops for export - cocoa from Côte d'Ivoire and Ghana (60% of global supply), coffee from Ethiopia and Kenya, cotton from West Africa - provide foreign exchange but expose farmers to global price volatility. Food security remains precarious with 280 million undernourished despite abundant arable land. Success stories exist - Ethiopia increased agricultural productivity through extension services, Morocco developed successful agribusiness, and Kenya exports horticultural products to Europe. Climate change threatens agriculture through changing rainfall patterns, increased droughts, and shifting crop zones.

Manufacturing remains underdeveloped, contributing only 10% of GDP compared to 31% in East Asia. Colonial economies exported raw materials for processing elsewhere, a pattern persisting today. Ethiopia develops textile and leather industries leveraging low labor costs. Morocco attracts automotive and aerospace manufacturing through proximity to Europe. South Africa maintains the continent's most diversified manufacturing sector. The African Continental Free Trade Area, launched in 2021, aims to boost intra-African trade from 15% to 25% by reducing barriers. Challenges include poor infrastructure, unreliable electricity (600 million Africans lack access), and competition from cheap imports. Yet opportunities exist in agro-processing, pharmaceuticals, and consumer goods for growing African markets.

Services increasingly drive African economies, particularly telecommunications, banking, and tourism. Mobile phone penetration reached 80%, enabling innovative services like M-Pesa mobile money in Kenya, used by 30 million people. Nigeria's tech sector attracts significant investment, earning Lagos the nickname "Africa's Silicon Valley." South Africa's sophisticated financial sector serves the continent. Tourism contributes significantly to economies in Morocco, Egypt, Kenya, Tanzania, and South Africa, though COVID-19 severely impacted the sector. Challenges include limited internet penetration (40%), inadequate digital infrastructure, and brain drain as educated Africans emigrate. Yet the sector's growth offers development paths beyond resource extraction.

Informal economies dominate African economic life, comprising 85% of employment and 40% of GDP. Street vendors, minibus drivers, artisans, and domestic workers operate outside formal regulations and taxation. This sector provides livelihoods for millions excluded from formal employment but lacks protection, benefits, and growth potential. Women dominate informal trade, crossing borders with goods despite bureaucratic obstacles. Innovation emerges from informality - Kenya's jua kali (hot sun) artisans manufacture everything from furniture to vehicle parts. Governments struggle between formalizing this sector for taxation and avoiding destroying livelihoods. Understanding informal economies is essential for grasping how most Africans actually survive and sometimes thrive.