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,MNG4804 ASSIGNMENT 1 2026 ANSWERS - DUE DATE : 30 APRIL 2026
Question 1:
The Impact of Globalisation on African Economies: A Critical Analysis
Economic Growth and Market Integration
Globalisation has significantly reshaped African economies by increasing their integration
into global trade and investment systems. Many African countries have benefited from
expanded export opportunities, particularly in commodities such as oil, minerals, agricultural
products, and increasingly, services. Trade liberalisation policies promoted through
institutions such as the World Trade Organization (WTO) and regional blocs like the African
Continental Free Trade Area (AfCFTA) have encouraged intra-African trade and improved
market access (UNCTAD, 2024).
Foreign Direct Investment (FDI) has also played a major role in economic expansion.
Countries such as Nigeria, Kenya, and South Africa have attracted investment in
telecommunications, banking, and infrastructure development, contributing to GDP growth
and job creation (World Bank, 2023). However, this growth is uneven, with resource-rich
economies benefiting more than less diversified ones.
Industrialisation and Structural Transformation Challenges
Despite increased global integration, Africa’s industrialisation process remains limited. Many
economies still rely heavily on primary commodity exports, which exposes them to global
price volatility. This dependence has hindered structural transformation, where economies
shift from low-productivity agriculture to high-productivity manufacturing and services
(UNECA, 2023).
Globalisation has, in some cases, reinforced this dependency by encouraging raw material
exports rather than local value addition. Multinational corporations often extract resources
and repatriate profits, limiting domestic reinvestment. This phenomenon is sometimes
, referred to as “unequal exchange,” where African economies remain locked in lower-value
segments of global supply chains.
Employment, Labour Markets, and Inequality
Globalisation has created both opportunities and challenges in African labour markets. On
the positive side, it has generated employment in sectors such as manufacturing, outsourcing,
and technology services. Countries like Egypt, Morocco, and Mauritius have developed
export-oriented manufacturing hubs that provide large-scale employment opportunities (ILO,
2023).
However, job creation has not kept pace with population growth, leading to persistent
unemployment, particularly among youth. Informal employment remains dominant in many
African economies, often characterised by low wages and poor working conditions.
Furthermore, globalisation has contributed to rising income inequality, as benefits tend to
concentrate in urban centres and among skilled workers, leaving rural populations behind.
Technological Transfer and Digital Transformation
One of the most significant benefits of globalisation is the transfer of technology and digital
innovation. Africa has experienced rapid growth in mobile technology, fintech, and digital
platforms. Countries such as Kenya have become global leaders in mobile money systems
like M-Pesa, demonstrating how global technological diffusion can support financial
inclusion (GSMA, 2024).
Nevertheless, the digital divide remains a major concern. Limited infrastructure, high internet
costs, and inadequate digital literacy restrict access in rural and marginalised communities.
This uneven access reinforces existing socio-economic inequalities and limits inclusive
development.
Debt, Dependency, and Economic Vulnerability
Globalisation has also contributed to increased external borrowing by African governments
seeking to finance infrastructure and development projects. While such borrowing can
,MNG4804 ASSIGNMENT 1 2026 ANSWERS - DUE DATE : 30 APRIL 2026
Question 1:
The Impact of Globalisation on African Economies: A Critical Analysis
Economic Growth and Market Integration
Globalisation has significantly reshaped African economies by increasing their integration
into global trade and investment systems. Many African countries have benefited from
expanded export opportunities, particularly in commodities such as oil, minerals, agricultural
products, and increasingly, services. Trade liberalisation policies promoted through
institutions such as the World Trade Organization (WTO) and regional blocs like the African
Continental Free Trade Area (AfCFTA) have encouraged intra-African trade and improved
market access (UNCTAD, 2024).
Foreign Direct Investment (FDI) has also played a major role in economic expansion.
Countries such as Nigeria, Kenya, and South Africa have attracted investment in
telecommunications, banking, and infrastructure development, contributing to GDP growth
and job creation (World Bank, 2023). However, this growth is uneven, with resource-rich
economies benefiting more than less diversified ones.
Industrialisation and Structural Transformation Challenges
Despite increased global integration, Africa’s industrialisation process remains limited. Many
economies still rely heavily on primary commodity exports, which exposes them to global
price volatility. This dependence has hindered structural transformation, where economies
shift from low-productivity agriculture to high-productivity manufacturing and services
(UNECA, 2023).
Globalisation has, in some cases, reinforced this dependency by encouraging raw material
exports rather than local value addition. Multinational corporations often extract resources
and repatriate profits, limiting domestic reinvestment. This phenomenon is sometimes
, referred to as “unequal exchange,” where African economies remain locked in lower-value
segments of global supply chains.
Employment, Labour Markets, and Inequality
Globalisation has created both opportunities and challenges in African labour markets. On
the positive side, it has generated employment in sectors such as manufacturing, outsourcing,
and technology services. Countries like Egypt, Morocco, and Mauritius have developed
export-oriented manufacturing hubs that provide large-scale employment opportunities (ILO,
2023).
However, job creation has not kept pace with population growth, leading to persistent
unemployment, particularly among youth. Informal employment remains dominant in many
African economies, often characterised by low wages and poor working conditions.
Furthermore, globalisation has contributed to rising income inequality, as benefits tend to
concentrate in urban centres and among skilled workers, leaving rural populations behind.
Technological Transfer and Digital Transformation
One of the most significant benefits of globalisation is the transfer of technology and digital
innovation. Africa has experienced rapid growth in mobile technology, fintech, and digital
platforms. Countries such as Kenya have become global leaders in mobile money systems
like M-Pesa, demonstrating how global technological diffusion can support financial
inclusion (GSMA, 2024).
Nevertheless, the digital divide remains a major concern. Limited infrastructure, high internet
costs, and inadequate digital literacy restrict access in rural and marginalised communities.
This uneven access reinforces existing socio-economic inequalities and limits inclusive
development.
Debt, Dependency, and Economic Vulnerability
Globalisation has also contributed to increased external borrowing by African governments
seeking to finance infrastructure and development projects. While such borrowing can
