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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
Especially for students who want to get information on commerce and factors that encourages its growth any where in the world, below are highlighted factors that promote and improve the growth of commerce.
1. GOOD TRANSPORT NETWORK: Improved and well developed means of transportation affects trade and commerce greatly. Transport systems like aeroplane, ship, electronic train can be used to move good from one place to another.
2. DEVELOPED COMMUNICATION SYSTEM : The developments of modern communication systems has eased and hastened contacts with people of different countries.
3. DEVELOPED FINANCIAL INSTITUTIONS: Financial institution have developed their services rapidly over the years. They provide quick and effective means of payments in foreign trade as well as making credits available for business.
4. SPECIALIZATION : Specialization has brought about interdependence. People now depend on one another while they produce what they have in comparative advantage and this has led to mass pr…