This article talks about a current financial situation in African countries such as Angola, Cape Town and Ethiopia. According to some research that has been done on Africa over the decades, despite the rapid economic growth, the level of poverty has remained still noticeably high. One of the poorest countries of this continent is Angola where some people unfortunately make less than $1 per day. This clearly shows that even though in 2008 the economic growth was around 20.8%, the majority of Angolans have not been able to benefit from it. It is also important to mention that as African's population increased, so did the costs of transportation, electricity or food. Hence, this could explain and certainly be a cause of a poverty the Africans live in.
Moreover, in several countries such as South Africa, has government adopted a welfare model for transferring money directly to citizens. They have been doing this by giving social grants to people who needed immediate help. According to statistics, number of people who have benefited from these social grants have rapidly increased over the years.There were several steps made that were supposed to help Africa get rid of the property. One of them was the lowering of taxes. However, the results were not successful. It was found that the level of poverty was even higher in countries where people paid lower taxes. Another strategy, which might work is to improve and invest into education that could also prepare Africa for industrialization. To conclude, none of these strategies is a short-term process, and therefore it will require lots of effort and patience to free Africa from poverty.
http://www.theafricareport.com/North-Africa/you-cant-eat-gdp-growth.html
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