1. Similarities and Differences between the African Nations
Week 2

2. Theme Topics for discussion
Theme objectives
Facts on Africa
Similarities and Differences: Macroeconomic governance and performance
Similarities and Differences: Economic development classification
Similarities and Differences: Regional Economic Communities in Africa
Similarities and Differences: Farming systems in Sub-Saharan Africa –SSA
Summary and discussions
Reflection exercise: Questions

3. Theme Objectives To show the macroeconomic fundamentals for Africa
To the similarities and differences between African countries,
To show the economic development classifications for African countries
To show the farming system practiced in Africa

4. Background on Africa Africa is a continent about
5,000 miles from North to South
4,600 miles from east to west at it widest point
There are about 3,000 distinct ethnic groups in Africa
Nigeria has about 370 recognized tribes and
Namibia has about 11
There are over 2,000 languages spoken in Africa
Arabic has the highest number of speakers
170 million people in North and the horn of Africa

5. Background on Agriculture in Africa
World Bank 2006b:11,135; Diao et al. 2007:5, 9:
Mention that the agricultural sector can be the engine for economic growth and improved livelihoods in Africa.
Diao et al. 2007:1 mentions that
majority of the population in Sub-Saharan Africa lives in rural areas
and depends directly or indirectly on agriculture.
In fact, agriculture contributes about 17% to the Gross Domestic Product (GDP) of many of these countries and
accounts for 40% of their exports, apart from contributing to employment creation.
Thus, it has the potential of reducing poverty which has been a great area of concern in many parts of the continent.
Statistics reveal that the number of people living below the poverty line in SSA
is over 180 million and is expected to exceed 300 million by the year 2020

6. Background on Agriculture in Africa
Despite the great potential for agricultural production in Africa,
UNDP states that about 73% of the poor people living in rural areas subsist on less than a dollar a day.
In addition, the continent has about 200 million of the world’s hungry people (Millennium Development Goals (MDGs) Technical Support Centre.
Furthermore, available statistics suggest that about one third of the continent’s population is malnourished.
Africa is also the only continent where food production has been falling over the years.

7. Goals and targets for Africa
Africa, like the rest of the world, needs to attain the United Nation’s Millennium Development Goals (MDGs)
And the World Food Summit (WFS) goals to reduce the number of hungry people from 790 million to 400 million by 2015.
There is suggestion that to reduce poverty by 50% by 2015, African economies need to grow at 7% per annum.
Another target requires that a national strategy for sustainable development be in place in every country
to ensure the reversal of current trends in the loss of environmental resources at both national and global levels by 2015 (ECA 2005).

8. Macroeconomic governance and Performance
Many African economies appear to have turned the corner and moved to a path of faster and steadier economic growth.
Increasing GDP growth
Reduction in inflation
Significant improvement of the debt-to-GDP ratio
These appear to have slowed down as the 2000s have progressed
Economic output for Africa as a whole expanded rapidly,
From a low annual average growth rate of 1.6 percent in 1990–95 to 3.6 percent in 1995–2003 and to 5.03 percent in 2003–09.

9. Macroeconomic governance and Performance
For the purpose of distinguishing African countries based on the similarities and differences;
We use Diao et al 2007 and World bank 2010:
LI – 1: Low Income, more favorable agricultural conditions and mineral rich Countries, consists of 6 countries
LI – 2: Low Income, more favorable agricultural conditions, non-mineral rich, consists of 14 countries
LI – 3: Low Income and less favorable agricultural conditions, consists of 9 countries
MI: Middle income countries, consisting of 24 countries

10. Macroeconomic governance and Performance
The rate of expansion in GDP increased over 2003–09
For the eastern Africa region 0.1 percent
For LI-1 about 0.1 percent
For LI-2 about 0.3 percentage points, respectively.
Notable outliers driving growth trends in their respective regions include Equatorial Guinea of central Africa,
where oil revenue caused GDP to more than double
Liberia - one of the LI-1 countries,
with more favorable agriculture and mineral resources—which grew at annual rates above 20 percent between its two civil wars.
Oil exporting African countries—such as Nigeria and Angola—are currently benefiting from resumption of the demand for oil,
though they remain vulnerable to fluctuations in international oil prices (IMF 2010a)

11. Macroeconomic governance and Performance
Two other important economic indicators offer additional insight into the evolution of the enabling environment for African agriculture:
inflation, and
debt as a share of GDP
Africa as a whole experienced relatively low inflation levels over the periods 1990–95 and 1995–2003,
at an average of 1.3 and 0.5 percent respectively;
inflation increased however to an average of 8.3 percent over 2003–09
This pattern, observed at the continental level, is reflected in the regions to differing degrees.

12. Macroeconomic variable: Inflation
Comoros, Eritrea, Mauritius, and Sudan drove the increase in the eastern region,
While Libya, Morocco, Algeria, and Mauritania drove the increase in the northern region.
Overall, inflation was under greater control following 2003 than in preceding years.
With the exception of the LI-2 economic development group—favorable to agriculture but mineral poor—each group experienced an annual average decrease in inflation over 2003–09.

13. Macroeconomic variable: debit-to-GDP ratio
In both geographic and economic aggregations:
For Africa as a whole, government debt as a percent of GDP declined
from an annual average of percent over 2000–03 to percent over 2003–09
Southern Africa is the least indebted region as a fraction of its GDP, at percent in 2000–03 and percent in 2003–09
Mineral-rich group (LI-1) is the most indebted relative to output,
Still standing at a hefty percent in 2003–09, with Congo and Guinea driving this trend
The significant reductions in debt have been driven by debt forgiveness under two initiatives—heavily indebted poor countries (HIPC) and the multilateral debt relief initiative (MDRI) (IMF 2010; Ricksecker 2001)

14. Economic Development Classification LI - 1
Middle income (24) (MI)
Low income (29)
Algeria
Rep. Angola
Botswana
Cameroon
Cape Verde
Congo, Rep. of
Cote d’Ivoire
Djibouti
Egypt
Equatorial Guinea
Gabon
Lesotho
Libya
Mauritius
Morocco
Namibia
Nigeria
These countries are more favorable agricultural regions:
Central African Republic
Congo, Dem.
Guinea
Liberia
Sierra Leone
Zambia
Benin
Burkina Faso
Ethiopia
Gambia, The
Ghana
Guinea Bissau
Kenya
Madagascar
Malawi
Mozambique
Tanzania
Togo
Uganda
Zimbabwe
LI - 1
LI - 2

15. Distinguishing Characteristics
North Africa has characteristics that distinguish it from Sub-Saharan Africa.
For instance, oil revenue is an influential factor in the economies of North African countries, such as Algeria and Libya.
The service sector contributes most to GDP growth in the region, followed by industry, then agriculture.
This increase in industrial production in the region, the achievement has been at the expense of agricultural sectors.
Socio-political implications will eventually force governments to invest in agricultural services to help poor rural population (ECA 2006a).

16. Economic Development Classification…..
Low income (29)
Middle income (24) (MI)
These countries are less favorable agricultural regions;
Burundi
Chad
Comoros
Eritrea
Mali
Mauritania
Niger
Rwanda
Somalia
Diao et al. 2007, Dixon, Gulliver, and Gibbon 2001, and
Sao Tome & Principe
Senegal
Seychelles
South Africa
Sudan
Swaziland
Tunisia
The World Bank 2010
LI - 3

17. Economic Development Classification
Mineral rich LI countries
None-mineral rich LI countries
Central African Republic
Congo, Dem.
Guinea
Liberia
Sierra Leone
Zambia
Benin
Burkina Faso
Ethiopia
Gambia, The
Ghana
Guinea Bissau
Kenya
Madagascar
Malawi
Mozambique
Tanzania
Togo
Uganda
Zimbabwe

18. Regional Economic Communities (RECs)
There are eight (8) regional groupings in Africa:
CEN-SAD: is the Community of Sahel-Saharan States= (27 countries)
COMESA: is the Common Market for Eastern and Southern Africa= (19 countries)
EAC: is the East African Community=(5 countries)
ECCAS: is the Economic Community of Central African States= (11 countries)
ECOWAS: is the Economic Community of West African States= (15 countries)
IGAD: is the Intergovernmental Authority for Development= (7 countries)
SADC: is the Southern Africa Development Community = (15 countries)
UMA: is the Union du Maghreb Arabe = (5 countries)
Sources: AU 2011; CEN-SAD 2011; COMESA 2010; EAC 2011; ECOWAS 2010; IGAD 2011; NEPAD 2010b; SADC 2010; UMA 2011.

19. Role of RECs in Agriculture
Agriculture is a crucial and dynamic sector in the region
The formation of the RECs is expected to result in:
Economies of scale,
Enlargement of markets,
Develop specialization according to comparative advantage,
Attract foreign investment, and
Improve international bargaining position.
The impact of free trade will be felt both on the import and export sides.
The sector is an important employer.
In fact, large proportion of people in the SSA region live in rural areas and derive their livelihood from agriculture and related activities

20. Geographic Scope in Africa

21. 15 SADC countries and their Location

22. Agricultural dualism and stability in SSA..
Subsistence farming, subject to erratic rainfall, is significant as a form of agriculture in many countries in the region,
Mainly characterized by rearing of cattle, sheep, goats and crop cultivation.
Commercial agriculture is also very pronounced in the region, with large commercial farms and estates being major assets
The agricultural potential in countries such as Angola and Mozambique were devastated by prolonged civil wars.
Peace and reforms are sweeping across Sub-Saharan Africa, bringing greater stability to the sector.

23. African farming systems
Agro-pastoral (millet and sorghum) system
Cereal and root crop mixed system
Coastal fishing system
Forest based system
Highland perennial system
Irrigated system
Upland system
Large commercial and smallholder system
Maize mixed with other crops
Pastoral system
Rice-tree crops system
Root crops system
Sparse (arid) areas
Tree crops
Water bodies

24. Farming system in Sub-Saharan Africa-SSA

25. In summary:
African countries differs in terms of the resource endowment, income per capita and population growth
Agriculture plays a major role in low income, non mineral countries
Agriculture can be an engine for economic growth in all African countries
Macroeconomic conditions are improving in most part of Africa
Sub-Saharan African countries are lagging behind Northern Africa
African countries have RECs and overlapping memberships to regional bodies
There are different farming system practices in Africa

26. Any Questions for discussion
Contributions are welcomed……

27. Review Questions: 100 points
How many languages are spoken in Africa? 10 points
Which country has the most languages? 2 points
How many distinct ethnics are in Africa? 10 points
Which language is mostly spoken on the continent? 3 points
On average, how much does agriculture contribute to GDP in most African countries?5 points
How many people are estimated to be living under the poverty line in Africa? 5 points
What is the percent of people living in rural area in Africa? 5 points
What is the target percent for poverty reduction to reached by the year 2015? 5 points
On what basis are African countries classified? 5 points
List the major classification. 10 points
How many regional economic groupings are in Africa? list them. 5 points
Name the regional groupings to which Namibia belongs? 5 points
Are there any overlapping in membership? 5 points
What are the perceived role of RECs in Africa? 10 points
How many farming systems are practiced in SSA? 10 points
In which countries would you find “large commercial and smallholder” farming system being practiced? 5 points