Explain five factors that adversely affect the growth of commerce in West Africa.

Answer Details

Five factors that adversely affect the growth of commerce in West Africa

1. Inadequate capital: Most businesses in West Africa are small and lack sufficient funds to expand, while credit facilities from banks are limited and interest rates are often high. This restricts the growth of trade and industry.
2. Poor transport and communication infrastructure: Bad roads, inadequate railways and unreliable telecommunication facilities make the movement of goods and information slow and costly, hindering the smooth flow of commerce.
3. Low level of technology: The sub-region relies heavily on outdated methods and imported machinery. Poor technology lowers the quantity and quality of goods produced for trade.
4. Political instability: Frequent changes of government, civil unrest and insecurity discourage both local and foreign investors and disrupt business activities.
5. Low purchasing power (poverty) and small markets: Widespread poverty and low incomes mean that demand for goods and services is small, so businesses cannot easily grow.

(Other valid factors include unstable government policies and multiple taxation, shortage of skilled manpower, unreliable power/electricity supply, and dependence on imported goods with weak local production.)