Factors Affecting the Growth of Commerce in West Africa
This post answers the question a student directed to us wanting to know the "factors that affects affect commerce in West Africa" Just as we explained in our previous post on How to Make Money in Africa, there are some information you may need to know about trade in Africa and West Africa before investing.
1. LACK OF INSUFFICIENT CAPITAL : Many West African countries lacks sufficient capitals to cope with the expanding growth of business and the level of capital invested in the business is usually low.
2. UNDEVELOPED MARKETS : Markets in West Africa are not well developed to accommodate large scale commercial activities.
3. ILLITERACY : The high rate rate of illiteracy in West Africa usually affects the growth of commerce in the region. Many people cannot read or write and cannot interacts with foreign traders in business.
4. POOR TRANSPORT SYSTEM : Major roads in some part of Africa and other West Africa are bad which discourages transportation of goods and services
5. LOW PER CAPITAL INCOME : Majority of people living in Africa and some part of West Africa lives below poverty line and may discourage people from buying and selling.
6. LACK OF COMMERCIAL FACILITIES : The various aids to aid to trade e.g banks, insurance, warehousing, tourism are not well developed which affect the growth of countries in this part of Africa
7. POLITICAL STABILITY : Constant change of Government and war affect business and trades in West Africa which results to the fear of foreign investor to come and invest in it.
8. LOW SAVINGS; The way of savings is very low in West Africa as a whole which results to lack of money to do business. Read Also, how to get Business ideas
If these factors can be overcome, then the business can start while the continent also get improved. Thanks for reading.