That's my fear too.
Lets discuss the potential of what is the Democratic Republic of Congo
- Thread starter Bawon Samedi
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Which is why I find it amazing that some of these militants or hoteps can't grasps this.
I'm just going to keep up to date with it.
They can but they'd rather go with more sensational narratives.
And I just want to point out that my talking points in this thread are mainly from an African POV. I know China having a bigger influence in Africa will have a negative effect on our standard of living in the West.
Interesting thread, I don't know too much about Congo but I'm rooting for em.
Slightly off topic but I went for the first time in a few years not long ago and the wealth gap seems to be getting worse. I was more optimistic before I went and I still am, but visiting sort of put things in perspective. They told me they feel the new president is focusing too much on ending corruption instead of trying to push forward the nation in other ways, but who knows
Slightly off topic but I went for the first time in a few years not long ago and the wealth gap seems to be getting worse. I was more optimistic before I went and I still am, but visiting sort of put things in perspective. They told me they feel the new president is focusing too much on ending corruption instead of trying to push forward the nation in other ways, but who knows
I dont know if you mean that you don't know much about the current Congos and Angola or if you mean the Kingdom of Kongo. However, if you have some time and you like reading then you should read about the Kingdom of Kongo and their ManiKongos (their rulers). The Kingdom of Kongo covered significant areas of the current Congos and Angola; in fact the land of Angola was a gift from a ManiKongo to Portugal, so that should give you some idea of how large the Kingdom of Kongo was and how wealthy, advanced and orderly the people of Kongo were. The saddest part is that the Portuguese and later the Dutch with the help of some crooked ass Kongo Chiefs fanned the flames of Civil war in Kongo when they all kept undermining successive ManiKongos. The Civil wars eventually caused the collapse of the Kingdom of Kongo and made the Kongo one of the biggest exporters of war prisoners who were sold into the transAtlantic slave trade.
Interesting reading if you have time and it sheds a totally different light on African civilization. The letters written by one ManiKongo to the King of Portugal about the Portuguese and the crooked Kongo Chiefs kidnapping Kongo royalty, noblemen and other dignataries and selling them into slavery is incredibly sad.
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Yeah I know about the Kingdom of Kongo brother, I was moreso referring to current Congo.
Do you have any more information on the bolded btw?
That is more or less an overstatement when looking at the size of Angola today as defined by the borders set up by the Europeans. My statement should have been that the ManiKongo gave them some land in what is now Angola and of course the Portuguese merchants and traders schemed and scammed and got more. It was the Portuguese that founded the City of Luanda. The Kingdom of Kongo's borders were substantially different than the borders of the modern countries of Angola, Gabon, Republic of Congo and the Democratic Republic of Congo. So it is an overstatement to say that the ManiKongo gave them Angola, but it is still impressive in my mind that the Kingdom of Kongo ruled over such a large geographic area and it was very orderly.
The Odum of Ala Igbo
Hail Biafra!
I'll post this in the Africa thread:
President Buhari, We Are Killing Jobs Not the Naira, By Akin Oyebode - Premium Times Blogs
President Buhari, We Are Killing Jobs Not the Naira, By Akin Oyebode
Premium Times February 16, 2016 President Buhari, We Are Killing Jobs Not the Naira, By Akin Oyebode2016-02-16T07:52:45+00:00 Opinion Comment (4)
In a recent interview with the BBC, President Buhari said:
“I have asked the Central Bank Governor and others to sit and see if they can convince me to murder the Naira.”
He also said:
“Most of our young people can’t get jobs; one of the biggest dangers we face.”
For Nigeria to meet its job creation target, the government needs to solve the supply side challenges impacting the exchange rate in order to make the economy more competitive.
During the campaign that led to his election, the president’s party highlighted job creation as its major economic goal. In many discussions, a target to create three million jobs was promised, to ensure the bulging youth population is engaged in productive activities. If various estimates are to be believed, approximately five million Nigerians come into the workforce annually, yet in the same period, the country struggles to create more than 1.5 million jobs. This is why unemployment and underemployment in Nigeria are now at 9.9% and 17.4% respectively.
For Nigeria to meet its job creation target, the government needs to solve the supply side challenges impacting the exchange rate in order to make the economy more competitive.
How the Naira Lost its Shine…
The economic principle of demand and supply is simple. If demand for the dollar increases in Nigeria, it becomes more expensive to “buy” dollars, since this demand will create the scarcity of dollars. Also, if the supply of dollars reduces, even if demand for it stays the same, a scarcity will occur, which will lead to a rise in the price of the dollar.
How does Nigeria fit into this narrative? In 2015 the official price for buying $1 was roughly N200. At this price, we are made to believe the demand for and supply of dollars is at equilibrium. Since then, a number of things have happened to the supply of dollars to Nigeria:
1. Oil prices have crashed: According to the NBS: “in Q3 2015 Nigeria exported mainly mineral products, which accounted for 86% of total exports.” This means crude oil accounts for over 80% of all exports and remains Nigeria’s foreign exchange earner. So, the drop in oil prices has reduced Nigeria’s foreign exchange earnings by almost $50 billion; ouch.
If the naira is over-valued, exporters don’t have an incentive to bring their foreign currency proceeds back to Nigeria.
2. Non-oil exports are struggling: At a conference organised by the CBN and the Nigerian Export-Import Bank (NEXIM), the CBN Governor said non-oil exports dropped from $10.5 billion in 2014 to $4.4 billion in 2015. If the naira is over-valued, exporters don’t have an incentive to bring their foreign currency proceeds back to Nigeria. So, non-oil export earnings dropped by $5 billion in one year; ouch.
3. Foreign investment is shrinking: According to a Nigerian Capital Importation Report recently released by the NBS: “The total for 2015 was recorded at $9,643.01 million. This represents a 53.53% fall on the previous year, when the total was $20,750.76 million. So, foreign capital invested in the Nigerian economy dropped by $11 billion in one year; ouch.
The combination of these events means foreign exchange supply in Nigeria has dropped by over $60 billion in one year. To minimise the impact of the drop, the CBN responded by spending almost $11 billion of its reserves to defend its reserves; and when it realised the ineffectiveness of that decision, it decided to manage the demand for foreign exchange with several short-term policies.
…despite the CBN’s best intention of pegging the exchange rate, most Nigerian businesses now buy the dollar at N300 on the Black Market, a 50% premium compared to the official rate.
But the laws of demand and supply don’t change overnight. If the supply of a commodity, in this case, the dollar, drops by almost 50%, then the price of the product will rise. This is why despite the CBN’s best intention of pegging the exchange rate, most Nigerian businesses now buy the dollar at N300 on the Black Market, a 50% premium compared to the official rate. This reflects the decline in supply, and follows standard economic principles.
… While Nigeria Faces Significant Economic Challenges
The weakening exchange rate is compounded by the challenges facing Nigeria’s economy. Within a decade, Nigeria dropped from 101st position to 124th position in the World Economic Forum’s Global Competitiveness Report. Labour productivity, estimated at $3.50/hour by the NBS, lags comparable in emerging markets, whose productivity measures are between $10/hour (Brazil) and $29/hour (Turkey). Nigeria also ranks in the 169th position out of 180 economies on the World Bank’s Ease of Doing Business report.
These numbers suggest Nigeria will struggle to attract the necessary investment if a different set of policy initiatives are not developed and implemented.
Private Sector Capital Holds the Key to Nigeria’s Competitiveness
Nigeria needs capital to improve its infrastructure stock, with power, transport and housing all in need of critical investment, despite dwindling Government revenues. The government needs to eliminate its dominance in critical sectors like rail, air, power and the oil industries.
In the oil industry, the JV entities should be incorporated as private companies, with government retaining a minority stake. We must invite private sector participation in the management of our airports, waterways management and rail operations. Finally, the government should deregulate the transmission grid and encourage private sector participants in an area that is currently monopolised by government.
By providing a transparent and best-in-class framework to transfer existing assets, and enabling a new set of laws to govern and protect future investment, we can commence the long awaited journey to becoming a competitive economy and attractive investment destination.
These deliberate acts not only reduce the strain on government revenues, but more importantly, they encourage an inflow of domestic and international capital to critical drivers of economic competitiveness.
By providing a transparent and best-in-class framework to transfer existing assets, and enabling a new set of laws to govern and protect future investment, we can commence the long awaited journey to becoming a competitive economy and attractive investment destination.
How Our Exchange Rate Policy Can Stimulate Growth and Improve Job Creation
1. To attract capital, we must create the right environment for those investments. In addition to the oft-repeated political risks and threats to long term growth, if the naira continues to trade at an artificial rate of N200:$1, rational investors will not consider Nigeria as a destination. This means the supply shortages of the dollar will probably get worse, not better, unless oil prices improve;
2. By ensuring the naira trades at its fair value, the government also eliminates speculation and perceptions of volatility. For example, MTN Nigeria and GTBank, who both have foreign currency debt obligations, have explored the possibility of paying their creditors early. Such moves suggest a belief that devaluation is inevitable, and will further worsen investor confidence. Even individuals are seeking ways to pre-pay school fees, or book holidays in advance. If the naira is properly valued, such demand side pressures will reduce, while those holding foreign currency in expectation of a devaluation will no longer have an incentive to do so, improving the supply side;
Nigeria can use its exchange rate policy to drive a coordinated trade agenda that makes domestic products more attractive, without adjusting import tariffs.
3. Assuming that our currency is fairly valued, and the supply of dollar increases, it will inevitably mean the price of buying the dollar will reduce over time from roughly N300. This is important for small businesses that will get the foreign exchange needed to buy their input and machines at cheaper prices, improving the cost of doing business, and making their products more competitive;
4. A weaker naira also makes local goods and services more attractive. While Nigeria might not be a major exporting nation, we must not ignore the large domestic market. When a country’s currency weakens, it will inevitably increase the price of imported goods, which will force most people to look for domestic alternatives. A weaker naira might be bad for those looking to import Honda and Toyota cars, but it will certainly make more Nigerians buy Innoson vehicles. Instead of spending months negotiating lopsided trade agreements, Nigeria can use its exchange rate policy to drive a coordinated trade agenda that makes domestic products more attractive, without adjusting import tariffs.
We know the president means well, and genuinely believes the current policy is what best suits Nigeria, but as Saint Bernard of Clairvaux famously said, “hell is full of good intentions.”
These are reasons why President Buhari must review his current stance on the exchange rate. A weaker currency does not imply he is “killing” the naira. However, an artificial exchange rate, which we currently have, might spell the death of many businesses, some of which have started laying workers off.
In a country where 20 million people are either out of work, or in jobs below their skills levels, the government must do everything to allow businesses create jobs, including an exchange rate policy that stimulates business. While the CBN’s exchange rate policy did not create Nigeria’s economic crisis, the decision to support an artificial value of the naira is gradually making it worse.
We know the president means well, and genuinely believes the current policy is what best suits Nigeria, but as Saint Bernard of Clairvaux famously said, “hell is full of good intentions.”
Akin Oyebode is a trained Economist and finance professional. He writes at medium.com/@akinoyebode.
This opinion piece is the second in a six-part series that hopes to steer the current exchange rate debate towards a focus on facts, taken from economic theory, history, and evidence from Nigeria and other countries. The authors hope that Mr. President will read these pieces and reconsider his stance on the Naira and the broader question of economic growth.
I went back and did more research on the issue and it was ManiKongo Álvaro I Nimi a Lukeni (reigned 1568–87) that gave the Portuguese a small portion of Kongo which we now know as Angola. The gift was given to Portugal because the Portuguese helped the Kongo fight off a group of warriors from the East called the Jagas.
A later ManiKongo Garcia II Nkanga a Lukeni (reigned 1641–61) sided with the Dutch in a dispute with Portugal over the rights of certain parts of Angola. In the Battle of Mbwila (or Ulanga) on Oct. 29, 1665, the ManiKongo was killed. Civil War followed the death of the ManiKongo, because Kongo didn't have a clear path for succession to the ManiKongo which of course further weakened the Kingdom of Kongo.
Thoughts on what? They are rich, but until they build infrastructure and rid corruption its useless. Its one big wild wild west over there, the country is massive with hardly any roads, how are you going to police the west of the country? east? north? There aren't even any airports or railroads covering the entire country and in between. It's going to take decades on decades, its one of the least densely populated countries in the world next to Canada and Russia. At least Canada and Russia have transportation to extract and it's resourcing aren't next to thieving neighbours.
Why do you care anyways? When I speak on african american issues you lot tell me to mind my business, yet this is the 3rd africa thread today and none of you have or plan to be here.
Thoughts on what? They are rich, but until they build infrastructure and rid corruption its useless. Its one big wild wild west over there, the country is massive with hardly any roads, how are you going to police the west of the country? east? north? There aren't even any airports or railroads covering the entire country and in between. It's going to take decades on decades, its one of the least densely populated countries in the world next to Canada and Russia. At least Canada and Russia have transportation to extract and it's resourcing aren't next to thieving neighbours.
Why do you care anyways? When I speak on african american issues you lot tell me to mind my business, yet this is the 3rd africa thread today and none of you have or plan to be here.
1. The thread is about how would a fully developed DRC look like and how powerful would it be. Thats what Im mostly asking you.
2. What problems do I have with you addresing AA issues as long as you're respectful? I NEVER told any African to mind their business.
3. Would I move to Africa? Well my sister is living in Ethiopia teaching English and I'm trying to go there this May....
Again your thoughts?
It'll never happen, the country needs to be divided into 3
Pretty sure you have, but I'll keep tabs now.
Until then.....
Misreeya
Pro
Yeah, regional unity or people that may be cultural and historically similar makes the most sense in my book. It seems like the map has many different "blocks"
