Africa: A Land of Wealth and a Land of Poverty: Why the Richest Resource Continent Suffers from Poverty.

Abstract

The African continent is no doubt the most resource-abundant continent. Resources such as gold, diamond, oil, natural gas, copper, uranium, among others are mined in different parts of the continent. Almost every country in Africa has a deposit of natural resources, Africa is also the poorest continent in the world. Per capita income in African countries is among the lowest in the world. This is evidenced by the failure to meet the Millenium Development Goals. The paper examines the phenomenon of the natural resource curse in Africa. Understanding the reason why a natural resource-rich continent like Africa is still grappling with extreme poverty, inequality, and underdevelopment is key to policymakers and researchers. The paper also examines the effect of foreign aid on economic growth in Africa. The goal here is to contribute to the debate on whether the African continent benefits significantly from the flow of aid into the continent.