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==Economy== Before the colonial era, the African population was engaged in livestock farming, subsistence agriculture, and, to a lesser extent, crafts and trade. Most markets were local, although numerous states had developed long-distance trading systems for centuries. These states were characterized by specialized production, communication and trade networks, and complex governmental bodies that regulated the flow of goods. Among these states were the kingdoms of the Sahel, linked to trade with the Mediterranean across the Sahara, the kingdoms of Ghana, Songhai, Kanem-Bornu in West-Central Africa, and Great Zimbabwe in Southern Africa; trans-Saharan trade, which began before the Roman era, continued until the 19th century. In Africa, gold, cola nuts, copper, ostrich feathers, and salt were the main export goods for hundreds of years before European colonization. The imposition of European rule, starting in the 18th century, immediately led to an increase in the demand for slaves, required in far greater quantities than in previous eras: this resulted in serious distortions and disruption in the political and cultural life of African societies, as well as the deportation of millions of people from the central and western regions of the continent. Colonization led to foreign demand for new agricultural and mineral products and the internal migration of labor; new and faster communication systems were built, and European technology and crops were introduced, not always to the benefit of the local population. A market economy thus developed. Local industries and crafts – textiles and iron goods, for example – often could not compete with cheaper and more prestigious European goods. Processing industries developed, as well as new ports and administrative centers imposed by the new organization of the territory and urban lifestyles. Consumer goods industries arose to meet the latest market demands. A distinctive feature of the African economy is the coexistence of subsistence economies and modern market economies. Future growth depends on the availability of investment capital, global demand for local raw materials and the fairness of their prices, the availability of energy sources, the size of local markets, a possible reduction of foreign debt that paralyzes many African economies, and the willingness of industrialized countries to lower trade barriers for goods produced and processed in Africa. ===Agriculture=== Despite the expansion of trade and industry, Africans remain predominantly employed in agriculture and pastoralism. In North and Northwest Africa, oats, barley, and maize are the most important cereal crops. Dates, olives, and citrus fruits are the main tree crops; numerous species of vegetables are also cultivated. Goats, donkeys, sheep, camels, and horses are the most important livestock. In the Sahara Desert region, nomadic herders raise camels and goats, and the few farmers settled in the oases cultivate dates and cereals. South of the Sahara, in the Sahel territories and in the more fertile areas occupied by savannas, shifting cultivation – a practice in which small plots are created by burning stretches of savanna, cleared and cultivated, and then abandoned after a few years – is still practiced, but is gradually giving way to stable agriculture. Maize, sorghum, millet, and, along the rivers, rice are the main cereals cultivated in the belt north of the rainforests. In the wetter forest environments, the production of yams, cassava, and bananas takes over, cultivated especially in the coastal highlands and forest areas of Central Africa; Livestock farming cannot be practiced in these latter areas, which are infested with the tsetse fly, present in about a third of the continent. Traditionally, owning livestock remains an indicator of relative economic and social well-being. Market-oriented agriculture is widespread throughout the continent. Foodstuffs are produced for local urban markets, while cloves, coffee, pineapples, cotton, cocoa, sugar, tea, maize, rubber, agave, peanuts, palm oil, and tobacco are among the agricultural products that have always been destined for export and industry. In the last twenty years, there has been a significant development in the cultivation of new products for Western markets, especially European ones: green beans, citrus fruits, roses and other flowers, and kiwis. In East and Southern Africa, extensive plantations and agricultural estates, often owned by foreign or European companies, are exploited for the cultivation of citrus fruits, tobacco, tea, and other products destined for export. ===Forestry and fishing=== Approximately a quarter of the African territory is covered by forests, from which local populations obtain timber used as fuel for domestic purposes; this often causes worrying processes of forest degradation, especially around cities. The production of precious woods, mostly destined for export, is economically important. Gabon is the main producer of okoumé, a wood used in the manufacture of plywood; Côte d'Ivoire, Liberia (before the civil war), Ghana, and Nigeria are the main exporters of hardwood, which is highly sought after by Western markets, but the production areas are now becoming depleted. Fishing is practiced mainly in the lakes of the Rift Valley; sea fishing is widespread primarily for local consumption and has considerable commercial importance in Morocco, Mauritania, Senegal, Namibia, Mozambique, and South Africa. ===Mineral Resources=== Extractive activity represents the most important item for African foreign trade, and the industries in this sector are among the most developed on the continent. Almost half of the revenue from the trade of minerals comes from South Africa, where there is the greatest concentration of gold and diamond mines, as well as chromium, asbestos, coal, and copper. Other important countries for extractive activity are: Libya (oil), Nigeria (oil, natural gas, coal and tin), Namibia (diamonds, uranium), Algeria (oil, natural gas, iron ore), Zambia and the Democratic Republic of Congo (copper, cobalt, lead and zinc), Zimbabwe (gold, asbestos, coal, chromium, iron ore and nickel) and Ghana (gold, bauxite and diamonds). Oil is also extracted along the West African coast, in the Gabon Basin, the Republic of Congo, the Democratic Republic of Congo, and Angola. Rich uranium deposits are found mainly in South Africa, Niger, the Democratic Republic of Congo, the Central African Republic, and Gabon. The Democratic Republic of Congo also has the world's largest reserve of radium. Approximately 20% of the world's copper reserves are concentrated in Zambia, the Democratic Republic of Congo, South Africa, and Zimbabwe. The Democratic Republic of Congo and Zambia also possess 90% of the planet's estimated cobalt deposits, while Sierra Leone has the largest reserves of titanium. Three-quarters of the world's gold comes from Africa; the main producers are South Africa, Zimbabwe, the Democratic Republic of Congo, and Ghana. Iron ore is found in all regions of the continent. Much of Africa's mineral wealth has been and continues to be managed by large multinational corporations. In recent years, African governments have acquired increasingly larger stakes in economic operations within their own countries. ===Industry=== The extractive industries (minerals and oil) give rise to processing industries, such as refineries and smelters, located in almost all countries rich in minerals and with adequate energy resources. South Africa is the most industrialized of the African countries, although most of them now have more or less developed industrial infrastructures; Zimbabwe, Nigeria, and the North African countries have significant industrial districts. Heavy industry (metallurgical, mechanical, and transport equipment) is concentrated in Southern Africa and Nigeria. Significant industrial centers have also developed in Kenya, Egypt, Morocco, and Algeria. The mining industries have experienced significant growth in the Democratic Republic of Congo and Zambia; Kenya and Côte d'Ivoire have primarily promoted the textile, light manufacturing, and construction materials industries. In other countries, industrial activity is limited to the production or assembly of consumer goods such as shoes, bicycles, textiles, food products, and beverages. Such industries often operate at a reduced capacity due to relatively modest market demand. Attempts by African countries to further develop the industrial sector, especially in the processing of agricultural export products to increase their added value, have been considerably hampered by the protectionism of industrialized countries, which impose heavy tariffs on these goods. Another obstacle to trade is the limited development of communication routes between the countries of the continent, which, built during the colonial era, are structured to serve the interests of individual states. ===Energy === Nigeria, Libya, Algeria, and Angola are the main African producers of oil; together with other countries, such as Gabon, they are also exporters. Natural gas exports from Africa are mainly from Algeria. Coal production is concentrated primarily in Zimbabwe and South Africa, although numerous other countries possess significant reserves (for example, Botswana), which are not yet exploited due to a lack of markets. Almost all the coal extracted in Africa is destined for domestic consumption. The increases in oil prices in the 1970s had negative repercussions for many African countries, as they exacerbated serious problems related to the balance of payments and foreign debt. The continent's high potential for hydroelectric power production is only partially exploited due to the high construction costs, the inaccessibility of the sites, and their distance from markets. However, since the 1950s, the large Aswan Dam on the Nile River has been built, although primarily intended to expand irrigated land, as well as the dam on the Volta River and the Kariba and Cabora Bassa dams on the Zambezi; the grandiose "Water Plan" currently under construction in Lesotho also includes the exploitation of hydroelectric power. === Transportation === The economic development of almost all African nations has been hampered by inadequate transportation systems. Most countries rely on road networks often consisting of rough tracks that become impassable during the rainy season. The road and rail networks built during the colonial period tended to connect inland areas to coastal centers. After decolonization, new road, rail, and air links have been created. Rail and maritime transport systems are more developed in Southern Africa. ===Trade=== The economies of most African countries rely on the export of one or a few products, making them weak and exposed to significant risks. Trade flows are mostly directed towards industrialized countries, which are interested in buying raw materials and exporting industrial and consumer goods. Trade between African states is limited by the competitive rather than complementary nature of their products and, to a lesser extent, by trade barriers (customs duties and exchange rates). A further obstacle is represented by the currencies, which circulate only within each country or certain groups of countries: this forces most transactions to be settled in US dollars or British pounds. Almost all former British colonies continue to enjoy free trade relations with the United Kingdom and maintain their monetary reserves in London. Former French colonies have mostly maintained close ties with France and belong for the most part to the CFA franc monetary area (African Financial Community). Furthermore, almost all African states have economic relations with the European Union, by virtue of the Lomé Convention, and benefit from reductions in customs duties. Few inter-African economic organizations have been formed and have been successful. The most enduring are the Economic Community of West African States and the Economic Community of Central African States; the most successful are the Southern African Development Community and the Preferential Trade Area of Eastern and Southern Africa. The African Union (AU) also promotes trade and economic development among the countries of the continent.
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