Globalization's Challenges for Africa: Strategies for Business Development and an African Single Currency

By Stany K. Twikalabimpa

Globalization's Challenges for Africa: Strategies for Business Development and an African Single Currency

In this timely and insightful book, Twikalabimpa delves into the complex landscape of globalization and its impact on Africa's economic trajectory. Born from years of research, including the author's doctoral dissertation, this book comprehensively examines the continent's challenges and opportunities as it navigates the currents of global integration.
From the pressures of international trade to the imperatives of sustainable development, this book presents meticulous analysis and compelling narratives that shed light on the key issues shaping Africa's economic future. With firsthand expertise, Twikalabimpa explores actionable strategies for fostering business growth and enhancing competitiveness in the global marketplace.
Central to the discussion is the vision of an African single currency—a bold initiative that promises to streamline trade, spur investment, and foster economic unity across the continent. Through nuanced exploration and pragmatic insights, Twikalabimpa outlines the steps needed to realize this transformative vision and unlock Africa's full economic potential.
Engaging and thought-provoking, "Globalization's Challenges for Africa" is essential reading for scholars, business leaders and practitioners, policymakers, and anyone concerned with Africa's place in the global economy. With clarity and vision, Twikalabimpa offers a roadmap for navigating the complexities of globalization and charting a course toward a prosperous and integrated African future.

• Language: English
• Publisher: BookBaby
• Release date: Jul 2, 2024
• ISBN: 9798350961065

Stany K. Twikalabimpa

STANY K. TWIKALABIMPA holds a Ph.D. in Business Administration with an emphasis in Strategic Management from the University of the Cumberlands, Robert W. Plaster Graduate School of Business in Williamsburg, Kentucky. He is originally from the Democratic Republic of Congo and currently lives in Denver, Colorado. He likes to research and write about international business and economics, business strategies, and management.

Book preview

Preface

Dr. Daniel Kanyam, PhD

Director of Plaster Graduate School of Business,

University of the Cumberlands

In the vast expanse of literature dedicated to the discourse on Africa’s position within the global framework, very few have ventured as deeply into the nuances of its business environment and the potential for continental unity as Twikalabimpa’s work. This book, a meticulous culmination of years of research, personal experience, and academic rigor, stands as a beacon for those seeking to understand Africa’s current standing and actively contribute to its future.

With its rich tapestry of cultures, resources, and potential, Africa has long been at a crossroads, caught between the legacy of its past and the promise of its future. The continent’s journey through the tides of globalization, its battle against economic disparities, and the quest for sustainable development form the crux of Twikalabimpa’s exploration. Yet, what sets this work apart is the depth of its analysis and the clarity of its vision for a unified Africa, standing strong in the face of globalization.

The book is dedicated to Professor Godefroid Kabengele Dibwe, a towering figure whose life’s work and mentorship have indelibly shaped Twikalabimpa’s academic pursuit and personal philosophy. This dedication is a testament to the profound impact of guidance, wisdom, and the passing of knowledge from generation to generation—a theme that resonates deeply within the narrative of African growth and development.

Twikalabimpa embarks on this journey with a holistic approach, weaving together the historical, economic, and sociopolitical threads that define Africa’s current business climate. Through a meticulously crafted examination of the continent’s role in globalization, the challenges it faces, and the strategies it might employ to not only navigate but thrive in a rapidly changing world, he lays down a blueprint for action.

This work is an academic endeavor and a call to arms for policymakers, business leaders, and the African citizenry. It challenges the prevailing narratives of dependency and underdevelopment, urging a reevaluation of Africa’s internal strengths and potential to forge a new path on the global stage. The proposal of an African Single Currency is not just an economic suggestion but a symbol of unity, a beacon of hope for a continent on the brink of a new era of prosperity.

As we turn the pages of this book, we are invited to embark on a journey of discovery, challenge our preconceptions, and be part of a critical conversation for Africa and the world. Stany K. Twikalabimpa has provided a comprehensive analysis of Africa’s challenges and opportunities and lit a path toward a brighter, more unified future. It is a path that demands our attention, engagement, and collective effort.

Let this book be a starting point for a broader dialogue that transcends borders and unites us in our common humanity and shared destiny. The future of Africa is a canvas yet to be fully painted, and it is within our power to contribute to a masterpiece of unity, development, and global integration.

1

Africa’s Role in Globalization

Globalization has recrafted how the world operates in almost every aspect. Corporations have broadened their horizons beyond national borders. International business barriers have diminished, and the free movement of people and goods has increased.

Globalization gained momentum in the 1960s and led to the integration among people, businesses, institutions, and governments of different countries in many aspects of human lives. Reinforcing this process has been the liberalization of world trade, international investment, the spread, and development of communication and information technologies, sound macroeconomic policies, a diverse and educated workforce, the existence of a market economy and global economy, and the growing importance of international capital flows.¹

Globalization has also changed how business is done, requiring firms and countries to learn to think globally to succeed in this competitive and challenging world marketplace. Countries, communities, and businesses must have global competitive strategies that integrate geographic information with market information, create global added value, and maximize the net gain from international trade. The dramatic acceleration of globalization over the past six decades has mainly been due to the spectacular expansion of businesses, the flow of capital, and the extraordinary advances in information technologies. This growing phenomenon has led to the unprecedented growth of international trade, as shown in the figure below.

World Trade Total Merchandise Exports from 1950 to 2022².

The amount is $US billion.

However, countries are not benefiting equally from globalization. The gap between developed and developing countries has widened despite the supposed benefits of free trade and investment over the past hundred years. In 1870, the average income per capita in the world’s seventeen wealthiest nations was 2.4 times that of all other countries. In 1990, the same group was 4.5 times as rich as the rest. In 2019, the thirty-four member states of the Organization for Economic Co-operation and Development (OECD), which includes most of the world’s prosperous economies, had an average gross national income (GNI) per person of more than $40,000. In contrast, the world’s forty least developed countries had a GNI of under $1,000 per capita, showing that income per capita in the world’s thirty-four wealthiest nations was forty times that in the world’s forty poorest.³ Overall, 60% of the global extreme-poor population lives in Africa.

Moving from countries to continents, it is plain that Africa, in particular, is not benefiting as much as it should from the benefits and opportunities of globalization. Despite the rapid growth of world trade in the past decades, Africa accounts for just 3% of world trade in goods and services. With that share of trade, Africa remains isolated from globalization, which holds back Africa’s business world development. World Bank Vice President for Western and Central Africa Ousmane Diagana, who took office in 2020, stated that African economies could not ignore the global economy as a source of business growth and development.⁴

This low participation of Africa in world trade can be explained, among other things, by the fact that the continent transacts most of its trade with industrialized countries. Intra-African trade is very low due to a lack of effective business development strategies and the inconvertibility of African currencies. To improve its local and international economies, Africa must reform its trade policy, particularly by diversifying its production and exports and, above all, by developing intra-African business to improve and diversify its participation in global trade and business. Given that some of the leading causes of intra-African business weakness include a lack of effective business development strategies and the inconvertibility of African currencies, it’s clear that African countries must derive relevant and contemporary business strategies and expand their thinking beyond traditional approaches and markets if they want to play an active role in the new globalized market. There are issues with the currency exchange rate, staggering business transaction costs, and sometimes conflicting regulations.

While poverty is still felt in East and South Asia, it is much more severe in Africa, especially in its sub-Saharan region. Africa can reasonably be named the world’s greatest development failure region. Around a billion Africans live with less than $1 per day, and 2.6 billion Africans live