Research report to demonstrate the poorest continent in the world sub sahar africa

Sub-Saharan Africa is home to 60% of the population under the age of 20, making it the youngest region in the world.. Sub-Saharan Africa's young population is an attractive consumer mark

HO CHI MINH CITY OPEN UNIVERSITY SCHOOL OF ADVANCED STUDY

RESEARCH REPORT TO DEMONSTRATE “THE POOREST CONTINENT IN

THE WORLD – SUB-SAHAR AFRICA”.

Subject code: BADM3308

Subject title: International Business

Class: IB201C

Lecturer: Ms Truong My Diem

Students: Phan Minh Việt – 2054012373

Ho Chi Minh City, 2023

EXECUTIVE SUMMARY OF SUB-SAHARAN AFRICA

Sub-Saharan Africa is the southern region of the world's largest desert It is called Black Africa and is considered a region of the Arab world It covers 49 countries, but a detailed study shows that there are hundreds of different ethnic groups that speak more than 2000 languages

It is economically diverse, with many thriving sectors in key industries ranging from technology & finance to chemicals & manufacturing

Sub-Saharan Africa is home to 60% of the population under the age of 20, making it the youngest region in the world Sub-Saharan Africa's young population is an attractive consumer market for the rest of the world, it also provides a large workforce with a favorable working age ratio, who attract a large number of people new wave of foreign investment, which can provide much-needed infrastructure and jobs The region is

different, however, where, due to the effects of corruption, dysfunctional governments areunable to provide enough infrastructure or jobs to support their new generations and underprivileged young people Economic hardships regularly push back their

governments with protests and riots and lead to problems with refugees seeking safety abroad There are also ethnic conflicts between religions that take place and persist to thisday

Although there are abundant resources, and the colonization of many Western countries leads to the utilization and exploitation of those resources, but does not bring many economic benefits to the countries The management of the education and health systems

is weak, lacking in knowledge and experience

The objective of this report is based on the data and information of sub-Saharan African countries combined with PEST analysis to produce statistics, proving that

sub-Saharan Africa is one of the countries in the sub-Saharan Africa

I INTRODUCION

1 GEOGRAPHY

Sub-Saharan Africa has a land area of 24.3 million square kilometers

Since about 5,400 years ago, the sub-Saharan and sub-Saharan parts of Africa have been separated by the Sahara's severe environment and scant population, establishing a sharp boundary separated only by the Nile River at Sudan, but the Nile is also separated by its waterfalls The Sahara Pump idea explains why plants and animals (including people) departed Africa for the Middle East and, via it, Europe and Asia Africa's rainy seasons are associated with a "wet Sahara" cycle due to the presence of vast lakes and numerous rivers

A vast range of climates or biomes can be found in Sub-Saharan Africa Particularly, it is thought that South Africa and the Democratic Republic of the Congo are very

biologically rich nations (Wiki, 2022)

2 DEMOGRAPHICS

Sub-Saharan Africa had a population of 800 million people in 2007

The current annual growth rate is 2.3% According to the United Nations, the region's population will reach close to 1.5 billion by 2050 It is also the most rapidly increasing It

is predicted that by 2050, one in every four persons on the planet will be African Women

in Angola have an average of six children, whereas the average individual in Niger is barely over 15 years old This young, increasing population is one of Sub-Saharan

Africa's distinguishing characteristics, and it has an impact on several significant regionaldevelopments

Child mortality is extremely high in Sub-Saharan Africa In 2002, one in every six

children (17%) died before the age of five; by 2007, the rate had reduced to 16%, with

one in every seven (15%) dying before the age of five Malaria is the primary cause of death (Wiki, 2022)

A holistic approach plan has been expanded to all aspects of the health sector, resulting inimprovements in health care indicators, health care efficiency, and treatment costs (Wiki,2022)

4 RELIGION AND LANGUAGE

Sub-Saharan Africa has a rich and diverse religious culture with a wide range of

practices include Buddhism, Hinduism, Islam, Baha'i faith, and Chinese religion

Together with Islam, Christianity is today one of the two most prevalent religions in Africa, and it is the largest in sub-Saharan Africa

With more than 500 million speakers, the Niger-Congo language cluster is the largest in Africa It is dominated by the Bantu branch, which is widespread in sub-Saharan Africa

Inter-ethnic communication involves the usage of about a hundred different languages Tens of millions of people speak Arabic, Somali, Berber, Amharic, Oromo, Igbo,

Swahili, Hausa, Landing, Fulani, and Yoruba (Wiki, 2022)

1 POLITICAL

POLITOCAL STABLE

Numerous sub-Saharan African countries have seen the emergence of a vibrant civilsociety that now plays an increasingly important role in political life Civil society,particularly professional associations, played a crucial role in starting the democratictransition in Sudan in 2018 The 2019 Civil Society Organization Sustainability Index forsub-Saharan Africa, published with the support of the US Agency for InternationalDevelopment, found that in elections, civil society provided 'crucial support, includingeducating citizens about the voting process, arranging for opportunities for voters to meetcandidates, supporting women candidates, and observing the polling process' Civilsociety was also involved in combating corruption That said, African civil societyorganisations face the serious challenges of inadequate funding and governmentrestrictions The lack of funding limits their independence and sustainability According

to the Sustainability Index, 'financial viability remained the weakest dimension of CSOsustainability in sub-Saharan Africa', with many organisations dependent on internationaldonors (báo, 2021)

TAX POLICY

(VOA, 2013)

The study of tax policy in developing countries has long been constrained by theavailability and the quality of detailed relevant data Moreover, extractive industries haveplayed and still play a crucial role in the economic development of SSA countries Morethan half of these countries are resource dependent, that is natural resources represent 25percent or more of total country’s exports Tax revenues from this sector are usually largeand at high risk of being taken out of the source country through various licit or illicitchannels, including: generous tax incentives provided in mining or petroleum codes andother laws; aggressive tax planning such as the use of thin capitalization, trademispricing, or plain tax evasion; and double taxation agreements that do not alwaysprotect appropriately source countries’ taxation rights (Emilie Caldeira, 2020)

CURRUPTION

Corruption or misuse of power for personal gain takes various forms in Sub-SaharanAfrica, both great and minor Corruption continues to stifle growth across the region,from modest bribes to gain access to government services such as schools or medicine togiving large government contracts to friends or family members Corruption iswidespread in many countries, wreaking havoc on the national economy and the generalpopulace

Corruption is so ubiquitous in South Africa that many refer to it as a "state takeover,"referring to the tremendous degree of influence that a few prominent individuals haveover the whole government The purported corruption case of former South AfricanPresident Jacob Zuma is claimed to have lost his country billions of dollars ingovernment financing and private investment (Wolrd, 2023)

Former South African President Jacob Zuma appeared in court on June 8, 2018, as he faced more than 16 corruption charges.Source: Marco Longari/Getty Images

If the influence of corruption is underestimated, Sub-Saharan African countries willcontinue to fail and be at the mercy of the rest of the globe According to statistics, nearlyhalf of the region's population lives in poverty, while annual stolen assets flow out of theregion to offshore tax havens total well over $50 billion; a staggering amount that could

be utilized to create jobs and improve social services Extensive corruption schemessubstantiate the region's common lack of growth, which not only drives away investorsbut also deters progress Individuals and families are not immune to the corruptionsyndrome, as most must pay bribes before receiving governmental service

2 ECONOMIC

FOOD SHORTAGES

In addition to famine, severe drought, and extreme famine, UN agencies such as the Foodand Agriculture Organization (FAO), the World Food Fund (WFP), the Office for the Coordination of Human Affairs, and the World Food Fund have reported cases of famine, severe drought, and extreme famine (WFP) OCHA and the United Nations Children's Fund (UNICEF) revealed on April 12, 2022 that more than 282 million people in Sub-Saharan Africa are suffering from extreme hunger, accounting for more than one-fifth of the continent's total population Children are the most vulnerable to the growing severity

of the drought For months, relief agencies have sent repeated warnings to the Saharan

region in the Horn of Africa, which is entering its fifth straight dry season Ten years ago,there could have been a famine that killed hundreds of thousands of people.

People wait for drinking water at a refugee camp in Baidoa, Somalia (Photo: AFP/VNA)

"Somalia is facing famine due to lack of rain, high food prices, lack of funding resources,leaving nearly 40 percent of the population on the brink of starvation," the statement said

People drink water distributed at a makeshift camp for displaced people due to severe drought in the town of Baidoa, Somalia February 13, 2022 (Photo:AFP/VNA)

Martin Griffiths, the head of the United Nations Office for the Coordination of

Humanitarian Affairs (OCHA), called on the world community on September 6, 2022, to raise funds to assist more than 200,000 Somalis on the verge of death Hunger as a result

of a historic drought

Martin Griffiths used the example of a two-and-a-half-year-old girl he visited in the hospital who passed away from hunger and weariness to highlight the catastrophic state the country was in during his remarks during an online press conference from the capital

of Somalia, Mogadishu According to Mr Griffiths, the situation in the regions the

delegation visited was getting worse, and OCHA required financing right away in order

to assist the drought victims before they reached a dead end

213,000 people in Somalia are in serious danger of famine following four wet seasons with the smallest amount of precipitation since the end of 2020

The United Nations reported earlier that day that since January, approximately 730

children had died in Somalia as a result of malnutrition, however the actual figure may befar higher

In the meantime, donations from new donors have already covered more than 60% of the

$1.4 billion required for Somalia's humanitarian preparations

It is predicted that the upcoming two rainy seasons won't have much precipitation,

therefore relief efforts will need at least an additional $1 billion

This is unusual, prompting OCHA to issue an alert and attempt to raise the international community's attention to the potential of a horrible famine in Africa, particularly in Somalia, followed by Ethiopia and Kenya

The United Nations World Food Program (WFP) said last month that the number of people at risk of famine in the region had grown to 22 million

In Somalia alone, 7.8 million people, or over half of the country's population, are hungry, and approximately 1 million have been forced to flee their homes in search of food and water

The continuous conflict in this region is thought to be one of the causes of the food crisis

in Africa in general and the Sub-Saharan region in particular Conflict is thought to be theroot cause of stymied efforts to address the region's severe water deficit, which has a

negative impact on agricultural production in several countries "A peaceful and stable environment is an absolute necessity for farmers to adapt to water scarcity and climate change issues," stated FAO Deputy Director General cum laude Mr Abdessalam Ould Ahmed, Middle East-North Africa Representative (Abdessalam Ould Ahmed)

HIGH RATE OF UNEMPLOYMENT

Sub-Saharan Africa (SSA) has risen at a rate of 5% per year over the previous ten years, and if this trend continues, the continent's economy might quadruple by 2030 Sadly, the rate of increase The majority of people are not benefited by this fast According to ILO figures, the young unemployment rate in Sub-Saharan Africa is high, with the period from 1991 to 2000 showing a 13.4% rate, the period from 2001 to 2012 a 12.3% rate, andthe period from 2013 showing a 77.4% rate with no evidence of a declining trend (IBOS,2023)

Jobless men wait to be hired for a working day on August 10, 2001 in a town outside Cape Town, South Africa.Source: Per-Anders Pettersson/Getty Images

According to the ILO research, just 3 million of the region's 15 to 29 year olds find employment each year in some nations out of the 10 to 12 million young people, with the remainder being unemployed and not pursuing education or training (NEET) (IBOS, 2023)

These figures exclude SSA, although it stands to reason that they are greater in the area

High rates of unemployment, a burgeoning young population, and significant

demographic shifts are possible sources of instability About half of the workforce is employed by the agricultural sector, which can be unstable, in the majority of African nations; but, in other nations, such as Burundi, Burkina Faso, and Madagascar, the

proportion is significantly higher—around 80% (Wolrd, 2023)

DEPENDENCY ON FOREIGN AID VARIES BY COUNTRY

In terms of ODA recipient countries, Ethiopia is Africa's greatest receiver According to OECD figures from 2012, Ethiopia received 1,367 million USD between 2000 and 2001, which had climbed to 3,364 million USD by 2011 Tanzania came in second with 1,739 million USD in 2000-2001, rising to 2,958 in 2010 In the years 2005-2008, Ethiopia wasthe third highest beneficiary of ODA with 3.5 billion USD (after Afghanistan and Iraq), Tanzania was fifth with $2.7 billion, and the Democratic Republic of the Congo was sixthwith $2.5 billion Furthermore, Uganda, Ghana, Mozambique, and others are among the Sub-Saharan African nations getting the most ODA (Nga, 2015)

The United States is the greatest donor to Africa, followed by the European Union, the African Development Fund (AfDF), and the International Development Association (IDA) According to OECD figures published in 2012, US aid to Sub-Saharan Africa was $1,556 million in 2000-2001, increasing to $8,898 million in 2011 (accounting for 33.4% of total US ODA abroad in 2011) Furthermore, EU countries such as France, Germany, and the United Kingdom have been significant donors in recent years China is also a major donor during the Covid 19 pandemic (Nga, 2015)

Despite receiving huge grants, the distribution is flawed, resulting in persistent shortages and corruption

Since 2000, when then-President Bill Clinton signed the Africa Growth and Opportunity Act (AGOA), certain African countries' goods have been allowed duty-free entry into the United States The inaugural US-Africa Summit, held in 2014 under President Barack

Obama, also made a number of pledges, including extending AGOA to 2025 and

providing $110 million yearly for three to five years in Africa for counterterrorism training The then-President of the United States announced private sector commitments

to enhance investment and foster cooperation with African countries on energy, financial services, climate change, food security, health care, and other efforts in the region (Hà, 2022)

Foreign aid and development support, which can take the form of cash, "services," or tangible items that one nation provides to another to assist them somehow, totaled $50 billion in 2017 for Sub-Saharan Africa While some nations, like Liberia, Niger, and Sierra Leone, largely rely on aid from abroad, other nations, like Nigeria, Botswana, and South Africa, do not Although there are differences in the effectiveness of foreign aid in the area, many cite the US President's Emergency Plan for AIDS Relief (PEPFAR), which offers life-saving medication to around 11.5 million individuals throughout sub-

A view of the US-Africa Summit (pictured) in Washington DC., December 15, 2022 Photo: AFP/VNA

More than $15 billion in two-way investment and trade partnerships address important issues such as renewable energy, food security, and climate change, including $2.5 billion

in new aid to assure food security Health care, agriculture, internet connection,

infrastructure, and banking are just a few examples Earlier, US Vice President Joe Bidenpledged a $ 55 billion investment in the "Black Continent" over the next three years (Hà,2022)

Some of the "Black Continent's" aims and aspirations were met in part by the US

commitments during the meeting The summit, held at President Biden's request, takes place while Africa faces numerous critical concerns, including food hunger, health and epidemics, climate change, military conflict, and the rise of unlawful government change.The impact of the COVID-19 pandemic, which has destabilized the continent's

developing economies, is still being felt in Africa Climate change is also having a

negative impact, particularly in the Horn of Africa and Sub-Saharan Africa, where

persistent drought has resulted in severe food poverty and famine rife (Hà, 2022)

3 SOCIAL

Sub-Saharan Africa is one of the most ethnically and culturally varied continents, home

to nearly one billion people across 49 nations Muslims, Christians, and followers of indigenous religions all coexist in Cameroon, where they speak over 200 different

dialects and come from about 250 different ethnic groupings The world's youngest and fastest-growing population is found in Sub-Saharan Africa; while these figures indicate immense economic promise, they also hint to great challenges as governments and expanding cities struggle to keep up with expansion Sub-Saharan Africa's fast shifting demographics are also a result of forced migration brought on by environmental changes and armed conflict Even though there has been a substantial improvement in health and education, particularly for women and girls, this area still lags behind other areas

(Wolrd, 2023)

YOUNG AND INCREASING POPULATION IN THE REGION

One of the most populous regions of the planet is already Sub-Saharan Africa But what really distinguishes the region is how quickly and how youthful it is Between 1950 and

2010, the region's population increased from 186 million to 856 million, with 43% of those residents being children under the age of fourteen In just a few decades, one in every four individuals on the planet will be an African These significant population changes will present opportunities as well as difficulties for the area Sub-Saharan Africa will have more people of working age (15 to 64) living there by 2035 than all other regions combined (Wolrd, 2023)