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

Lê Thị Bích Thủy – 2054012289

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 are
unable 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 this
day.

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

poorest continent in the world.

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 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 regional
developments.

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

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

3. MEDICAN

The Bamako Initiative conference, organized by the WHO in 1987, helped to reestablish
health policy for Sub-Saharan Africa.

Through community-based health reform, this program greatly enhances access to health
services, resulting in more efficient and inexpensive treatments. Because traditional
medicine is used by more than 85% of the African people as an alternative to frequently
expensive medical allergy care and pharmaceutical items.

A holistic approach plan has been expanded to all aspects of the health sector, resulting in
improvements 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)

II. ANALYSIS OF PEST

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 1. POLITICAL

POLITOCAL STABLE
Numerous sub-Saharan African countries have seen the emergence of a vibrant civil
society that now plays an increasingly important role in political life. Civil society,
particularly professional associations, played a crucial role in starting the democratic
transition in Sudan in 2018. The 2019 Civil Society Organization Sustainability Index for
sub-Saharan Africa, published with the support of the US Agency for International
Development, found that in elections, civil society provided 'crucial support, including
educating citizens about the voting process, arranging for opportunities for voters to meet
candidates, supporting women candidates, and observing the polling process'. Civil
society was also involved in combating corruption. That said, African civil society
organisations face the serious challenges of inadequate funding and government
restrictions. The lack of funding limits their independence and sustainability. According
to the Sustainability Index, 'financial viability remained the weakest dimension of CSO
sustainability in sub-Saharan Africa', with many organisations dependent on international
donors. (báo, 2021)

TAX POLICY

(VOA, 2013)

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

CURRUPTION

Corruption or misuse of power for personal gain takes various forms in Sub-Saharan
Africa, 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 to
giving large government contracts to friends or family members. Corruption is
widespread in many countries, wreaking havoc on the national economy and the general
populace.

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 have
over the whole government. The purported corruption case of former South African
President Jacob Zuma is claimed to have lost his country billions of dollars in
government financing and private investment. (Wolrd, 2023)

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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 will

continue to fail and be at the mercy of the rest of the globe. According to statistics, nearly
half of the region's population lives in poverty, while annual stolen assets flow out of the
region 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 schemes
substantiate the region's common lack of growth, which not only drives away investors
but also deters progress. Individuals and families are not immune to the corruption
syndrome, 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 Food
and 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

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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.

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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 be
far 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 the
root cause of stymied efforts to address the region's severe water deficit, which has a

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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, and
the 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.

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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 was
the 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 sixth
with $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
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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-
Saharan Africa, as an example of successful foreign aid. (Wolrd, 2023)

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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 Biden
pledged 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

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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)

MIGRATION OF PEOPLE IN SUB-SAHARAN AFRICA

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The subject of migration and asylum has long been a source of worry for people all over
the world. When refugees move to new cities and nations, it affects those cities and
nations as well. Countries' political, social, and cultural economies are impacted by
illegal immigration.

People from Sub-Saharan African countries made up nine of the ten fastest increasing
groups that moved or left their native country to live in another country between 2010
and 2017. (Wolrd, 2023). However, the vast majority of these migrants will remain in the
region. The majority will instead settle in neighboring countries. There are numerous
primary causes for this huge exodus. Many individuals have been displaced as a result of
violent wars, such as the ongoing civil war in South Sudan. Many economic migrants
seek better possibilities, and they frequently migrate from landlocked regions to more
rich coastal ones.

On July 17, 2019, Spain's maritime rescue agency reported that it rescued approximately
300 migrants from Sub-Saharan Africa in the area between the Spanish sea and Morocco
overnight. (giới, 2019)

HEALTH AND EDUCATION

The Fiscal Monitoring Reports 2017 of the IMF discuss developments in income
inequality, how those changes affect health and educational performance, and possible
policy solutions. Sub-Saharan Africa unfortunately faces significant challenges when it
comes to inequality of all kinds, with the region having the second highest average
income disparity in 2015 and a marginally lower level of inequality in 1985. (IBOS, Số
liệu trong tuần: Bất bình đẳng về kết quả y tế và giáo dục ở châu Phi cận Sahara, 2023)

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Disparity in access to education also reflects inequality in education in sub-Saharan
Africa.

(IBOS, Số liệu trong tuần: Bất bình đẳng về kết quả y tế và giáo dục ở châu Phi cận Sahara, 2023)

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Sub-Saharan Africa has some of the world's lowest literacy rates: less than half of
children and adults are literate in 12 nations, and less than half of the population is
enrolled in secondary school. However, during the last decade, the number of children
entering primary school has quickly climbed and now exceeds 90%. However, these
advantages are not distributed evenly: girls' secondary school attendance rates hover
around 8%. Girls who attend school, on the other hand, have a domino effect: they are
more likely to marry later, have fewer children, and have a greater overall quality of life.
(Wolrd, 2023)

Inequality in health coverage leads to inequities in health; Sub-Saharan Africa faces a

struggle in accessing health treatment.

(IBOS, Số liệu trong tuần: Bất bình đẳng về kết quả y tế và giáo dục ở châu Phi cận
Sahara, 2023)

Life expectancy has risen throughout the region, as have rates of noncommunicable
diseases (NCDs) such as cancer and diabetes. NCDs may necessitate long-term treatment,

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which presents a difficulty in places with limited access to health care services. Basic
sanitation is frequently unavailable, resulting in high rates of waterborne diseases such as
cholera. Furthermore, maternal and infant mortality rates continue to be among the
highest in the world. These issues are frequently exacerbated by the region's scarcity of
healthcare experts. According to the World Health Organization, Sub-Saharan Africa
bears 25% of the world's disease burden, but only 3% of the world's doctors. (Wolrd,
2023)

In sub-Saharan Africa, individuals have lived longer, healthier lives over the last few
decades. In Malawi, the average life expectancy rose from 44 years in 2000 to about 63
years in 2014. Other significant advancements include the nearly complete eradication of
polio and increased vaccination rates for kids. Less than one million people died from
AIDS-related causes in 2017, down from nearly two million in 2005, when
communicable diseases like measles were prevented annually. Despite accounting for
more than half of all fatalities, the HIV/AIDS epidemic still poses a severe threat to the
area. Antiretroviral medications, often known as antiretroviral pharmaceuticals ARVs,
are now available for the treatment of HIV-positive individuals. (Wolrd, 2023)

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 4. TECHNOLOGICAL

INTERNET

Home to a market of nearly 1.2 billion people and the world’s largest free trade area, sub-
Saharan Africa has vast untapped economic growth potential and extensive natural
resources. Yet, even as the rest of the world has benefited from the advances of the

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Internet and digital technology in the last decade, growth in sub-Saharan Africa has
actually slowed down in the last 10 years. Sub-Saharan Internet access rates are among
the worst in the world. In 2017, only one in five people in sub-Saharan Africa were able
to access the Internet, compared to the 48 percent across all countries worldwide and the
41 percent rate for developing countries. Part of this disparity results from the lack of
critical infrastructure for Internet access within these regions.

As a result of extensive networks of undersea Internet cables, physical Internet

infrastructure is much more expensive in landlocked regions than in coastal ones. Access
for landlocked countries largely results from the existing infrastructure of neighboring
countries, leading to large disparities in access within sub-Saharan Africa. South Africa,
with ample access to international cabling on the ocean bed, has an Internet penetration
rate of 50 percent, while West Africa’s 30 percent is still much higher than the 10 percent
in Central Africa.

A further examination of who obtains access to the Internet in these countries is also
particularly revealing. Market surveys of six sub-Saharan countries, Benin, Kenya,
Mauritius, Namibia, Rwanda, and Uganda, present a relatively coherent overview across
low-income, middle-income, and upper-middle income countries in sub-Saharan Africa.
Although it is to be expected that wealthier individuals will have more access to the
Internet, the extent of the disparity is alarming. In Kenya, only 5 percent of individuals in
the lowest income decile had access to Internet of any kind, while two-thirds of those in
the highest decile did. Without meaningfully equal access, any gains made by Internet
access will continue to be unequally distributed, further perpetuating the divide between
rich and poor in these countries.

Finally, Internet access in sub-Saharan Africa also exhibits a rural-urban divide. In most
of these countries, there is already a large trend towards disproportionate economic
development in cities, known as the “urban bias.” This is no exception when it comes to
the Internet. Internet providers are often disincentivized to build infrastructure in rural

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areas, as lower population density, lack of existing infrastructure, and less profitable
market create suboptimal business operating conditions. In comparison, the average
individual in a city is wealthier and better educated, providing an ideal market. (Odonkor,
2020)

MOBILE PHONE

In the last quarter of 2018, SSA was home to 456 million unique mobile subscribers –
representing an increase of 20 million subscribers over the previous year. Projections
from the GSMA Intelligence report for 2019 suggest that by 2025, there will be more
than 600 million mobile subscribers in the region, thus about 50% of the total population
in SSA will be connected.

With a Compound Annual Growth Rate (CAGR) of 4.6% and an additional 167 million
mobile subscribers from now to 2025, SSA continues to be the fastest growing region in
the world. The hotspots for the fastest growth levels from the period to 2025 will be in
Nigeria and Ethiopia - accounting for growth rates of 19% and 11%, respectively.

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Smartphone ownership in Ghana, Senegal, Nigeria, Kenya and Tanzania is 35%, 34%,
32%, 30% and 13%, respectively. Also the ownership of a basic phone in South Africa,
Ghana, Senegal, Nigeria, Kenya and Tanzania is 40%, 45%, 46%, 48%, 50% and 62%,
respectively.

With a mobile phone the region with the lowest penetration rate for deposit-taking
institutions in the world with an average of 16.6% as compared to 63.5% for developing
countries. Highlights from a World Bank report shows that the tremendous growth in
digital financial services in SSA has led to the creation of a new market for accessible,
affordable and sustainable financial services that has improved financial inclusion and the
livelihoods of millions of people in the region.

Again in SSA, where the agriculture sector contributes close to 23% of GDP and employs
60% of the population, smallholder farmers who in most cases own less than two acres of
land yet produce more than 80% of food are benefiting from digital technology – in
Ghana, Esoko, an online agricultural profiling and messaging service platform provides
agronomic advice, weather forecasts and market information to more than one million
farmers via SMS, voice SMS and a call centre.

According to the Food and Agriculture Organization of the United Nations (FAO), about
90% of the 48 million smallholder farmers in SSA lack access to formal credit as less
than 6% of commercial loans are given to farmers. This is partly because lending
institutions cannot fully assess the risk exposures of smallholder farmers. (Odonkor,
2020)

III. POLITICAL, ECONOMIC, SOCIAL AND TECHNOLOGY

ADVANTAGES AND DISADVANTAGES IN SAHARA AFRICAN
COUNTRIES

1. POLITICAL

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ADVANTAGES

o Sub-Saharan African countries have strong links between countries, so when

countries have crises. Governments of countries will support each other when
needed.

o Tax policies are also widely favored to help countries with each other. When one
country develops, another country develops.

o Mutual support in international elections in sub-Saharan Africa.

DISADVANTAGES

o Not having full control over political resources

o The protests are getting more and more

o Corruption is more and more frequent and happens often, the government has not
taken radical measures to solve it

o Because of the influence of previous wars, politics in sub-Saharan Africa is still

dependent on capitalist countries such as France and the United States.

2. ECONOMIC

ADVANTAGES

o Large population and abundant labor resources

o There are many natural resources for economic development.

o Abundant sources of investment and aid from abroad help improve economic,
education and health issues.

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 o Get the support of the government to improve and develop the country

DISADVANTAGES

o There are many corruptions that lead to the economy falling behind many times,
people's lives are facing many difficulties

o Due to being a colony of France, the economy is affected and depends a lot on
France

o Business taxes, colonial taxes must be paid annually

o Integrating to reach the world later than other continents, so the absorption is
much limited.

o People are tending to migrate to other capitalist countries at risk of being affected
in terms of resources in the future

3. SOCIAL

ADVANTAGES

o The young population is more than the old population, increasing the labor force

o Multicultural with thousands of ethnicities

DISADVANTAGES

o The large population of the economy can't keep up with the economic
development

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 o Many minor ethnic conflicts occur frequently

o The level of knowledge is low, many people are still not aware of their actions and
deeds

o The rate of social evils increases such as HIV, theft, murder, ....

4. TECHNOLOGY

ADVANTAGES

o Developed technology helps the economy, politics and society to update the world
situation

o Increase production capacity, product quality

o Reduce manual work, increase development productivity

o It's also easier to integrate into the world

DISADVANTAGES

o Development of technology to replace manual labor leads to more unemployment.

o People have bad imitations on social networking sites,...

o People too dependent on technology become weak

o The process of internet and technology has taken place in a spectacular way and
people may not be able to foresee the social problems and impacts on society in
the coming future.

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 IV. CONCLUSION

Through the analysis of the PEST model (political, economic, social and technological),
sub-Saharan African countries are currently the poorest countries in the world. Despite
having abundant human resources and rich mineral resources, it is not effective in
structuring and developing the economy. For politics, corruption, abuse of power, and
lack of capacity of authorities lead to ineffective resource management. Most of the
revenues from resource extraction (oil, coal, gold, etc.) go to the political elites. National
revenues are not distributed to the lower classes. The trickle down process is slow, or
even not happening. In contrast, for Asian countries, thanks to income distribution
policies (through taxation, social welfare programs) (redistribution policies), some
economic development achievements have supported support social development. When
big economic contractors collude with local officials, they not only exploit people's labor,
but also exploit the country's rich resources to the very end. For the economy, the weather
is inclement. African people do not know how to exploit properly, depleting, adversely
affecting the environment. SSA's politics are unstable, when ethnic conflicts, election
struggles,... always take place, making the economy unstable for development. People's
intellectual level is low, so they cannot contribute and enrich the country. Influences from
the colonial rule in the past (dredging, exploiting, ..), making Africa develop more slowly
than countries in other continents. For society, ethnic conflicts occur frequently. In
particular, the Ivory Coast conflict in 2002 killed nearly 20,000 people and displaced
nearly 1 million people. Besides, the education level is low, many procedures have not
been eliminated. Poverty and disease (in 2004 there were 314 million people living in
poverty. In 2015, 22.9 million people died from HIV, accounting for 20% of all malaria
cases worldwide). For technology, the uptake is limited due to the backward update
compared to other continents and the development of technology, the internet here also
depends on the stability of the current economy. (yennhitranvc, 2020), (Thảo, 2023)

MEASURE

25
For sub-Saharan African countries, the following measures should be taken to overcome
difficulties in the exploitation and protection of nature:

o Having policies, exploiting and using resources rationally;

o Build irrigation systems to limit drought;

o Actively cooperate with countries in the region to jointly come up

with solutions and support each other;

o Learn from major economies in the world to develop the country's

economy;

o Learn from other countries about natural protection measures;

The above solutions are necessary solutions for people in Africa to implement in order to
re-develop the economy and protect nature. Flexibility to learn and apply to economic,
terrain and human conditions in the region is what needs attention to achieve the highest
efficiency.

The conclusions of this report are based on general information for sub-Saharan African
countries. The PEST business model has shown us that this continent is the poorest
continent in the world at the moment. Although they are gradually changing in terms of
development and always updating changes according to the world. However, they are still
far behind other continents.

26
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