How the concept of opportunity cost is relevant to the economy of west Africa
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As West Africa’s population booms and its economy continues to expand, the opportunities for businesses to trade across the region are vast. Despite this, economic growth rates in most of the countries are lagging and poverty remains high. Essentially, West Africa’s farmers and firms produce and trade in highly localized markets and do not achieve the sufficient economies of scale required to attract broad-based investments that could accelerate growth and reduce poverty. This is due to a number of constraints including inefficient transportation and trade barriers along corridors and at borders, a heavy reliance on family and informal sources of financing, and an insufficient supply of reliable and affordable power. These factors result in West African products being uncompetitive in the international market place.
USAID/West Africa’s strategy is to work through regional organizations and private sector associations to address critical constraints to competitiveness and demonstrate West Africa’s productive potential in order to trigger greater regional investment.