BRICS Just Revealed Its African Strategy That Will Transform Africa Completely

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#africanews #trump #brics
Nigeria, Africa’s most populous country recently became the newest BRICS partner, making it the fourth African country to be affiliated with BRICS. With this, it is very clear that Africa is a very important region to BRICS. It's no surprise then, that the bloc recently announced its strategy in Africa. BRICS, through China, announced that it would invest 800 million dollars in Africa. This amount is almost six times the amount the US invested in Europe to develop the continent after World War 2. But what exactly will this fund be used for and what will BRICS gain in return? Let's find out.

Decades after Independence, African countries are still lagging behind in terms of development compared to the rest of the world. In the early 1960s to 1970s, African countries experienced significant economic and social welfare improvement. However, during the 1980s, this improvement began to decline. At the time, the global economic crisis led oil prices and interest rates to rise dramatically. This was made worse by a decrease in African export prices, and industrialized countries set up protectionist policies. In addition, there was a civil war, drought, poor leadership which put military spending before poverty reduction, and the AIDS epidemic.

The economy was in decline and Africa turned to the West for help. The West's response was the implementation of the Structural Adjustment Programs designed by the World Bank and IMF in return for debt rescheduling and aid. The SAP program advocates for trade liberalization, currency devaluation, removal of government subsidies, increased interest rates, and privatization. According to the World Bank and IMF, the SAP will restore economic growth and ultimately lead to poverty reduction.