Post-Colonialism Effects of Trade in Africa

By Abeedat Mustapha

Africa is favoured with resources so vast it is incomprehensible. It may be the richest country in Earthly resources yet using both the Gross Domestic Product (GDP) and Human Development Index (HDI) it is the poorest of all continents. This begs the question of how nations with such strong natural resources are the poorest. This article will explain the situation of pre-colonial determinations which alongside colonialism has stunted the development of African nations.

During colonial rule, a strong trade hold was established. Most African nations were given support with troops - social, political governmental structure, education and more in exchange for control and resources over the states. These raw natural resources would be extracted and sent to Europe to be refined and sold back at a higher cost to African nations. This process left them very susceptible to volatility in the global market. Nigeria having a natural oil reserve refined in Europe and Asia. Then, Nigeria buys back these reserves and sells them to its citizens at a price worthy of triggering inflation. This created a system which socialists refer to as the ‘dependency theory’. A more economically developed country makes a less economically developed one reliant on them. Andre Gunder Frank criticised these countries as building up their wealth and achieving their status only by reaping off the cheaper labour and resources from colonies. It is seen as an “ongoing legacy of colonialism”.

All countries colonised but one, Ethiopia. However, that by no means stopped the consequences flowing from other countries to diminish their potential to grow. Africa has the largest number of countries out of which most gained their independence within the 1960s-1970s from European powers. During colonial rule, development happened in most African nations but to trade internationally. There was a failure to develop intra-trade within African nations due to not developing road and trading routes. The consequence of this, higher restrictions are currently placed between African countries is the loss of potential earnings. Ethiopia’s exposure to these countries indirectly hindered its own economic growth. The impact of colonial rule was a separation among the African nations. This is currently reflected in the use of visa and travel restrictions amongst closer countries. African countries generally have one of the weakest passports and places they can travel without a visa. However the colonial rule is over, and it is with hope this area will be improved through diplomatic relations and establishing better connections with other countries. This would create economic growth across multiple African nations.

But this issue predates colonialism. When viewing a world map, the borders between countries in Africa have been criticised as being ‘artificial’. Most view this strangely as it has straight borders dividing many nations which is obscure to any other continent. During the 1800s Berlin Conference when the division of countries within Africa was established, those sitting at the table determining this did not consider the difference in political establishments when literally drawing lines. Not a single African in sight to weigh in on these choices. Ethnic groups split, families who should have been considered one separated, and cultural practices disparaged. Some opposing ethnic groups were forced to unify such as the Hutus and Tutsis in Rwanda. This forced unification directly affects the world crisis occurring in the Democratic Republic of Congo today, where atrocities are being committed against humanity.

Post-colonial rule, the effects remained including a ‘colonialism mindset’. This is where the colonisers are considered superior affecting views such as language or skin color. Before the amalgamation of some African nations, they each prevalently spoke their various native languages. The colonisers, enforced a state which had to speak their own language whether that be English, French, Portuguese and so on where speaking native languages is sanctioned in schools. This mindset went beyond just languages and physicality. It affected and is still affecting some outlooks on products believing some country-made products are inferior to importing from places like the USA or England. This creates a trade deficit which would then affect their exchange rate and buying/selling power in the global market.

Overall, Africa possesses vast natural resources yet remains the poorest continent by GDP and HDI measures. The colonial rule established a dependency theory where African nations became reliant on more developed countries for processing their raw materials. The Berlin Conference created artificial borders without African input, splitting ethnic groups and forcing opposing groups together. Lack of intra-African trade routes and high travel restrictions between African nations hinder economic growth. Post-colonial mindset continues to affect development through language policies and preferences for foreign products, creating trade deficits.