Reasons for low capital accumulation in some African countries.

[Mikes smithen]

Capital contributes as one of the most important part and feature of a business growth and development and in fact when an individual is planning to establish a business anyway and wherever in the world, capital points out to be one of the most important feature and paramount Factor he or she must put into proper consideration, in some areas of the world especially in some places of west Africa accumulation of capital is absolutely difficult due to some certain factors and reasons. There are several factors that contribute to low levels of business capital accumulation in African countries, including:

POLITICAL INSTABILITY AND CORRUPTION: Political instability and corruption can discourage foreign investment and make it difficult for businesses to operate and grow.

LACK OF INFRASTRUCTURE: Many African countries lack the basic infrastructure, such as reliable electricity, roads, and communication systems, needed for businesses to operate effectively.

LIMITED ACCESS TO CAPITAL: Small and medium-sized enterprises in African countries often have limited access to capital, making it difficult for them to grow and expand.

POOR ECONOMIC POLICIES: Some African countries have implemented poor economic policies that have stifled business growth and investment.

LACK OF HUMAN CAPITAL: A shortage of skilled workers and entrepreneurs in African countries can limit the growth and competitiveness of businesses.

NATURAL DISASTERS AND HEALTH EPIDEMICS: Natural disasters and health epidemics, such as droughts, hurricanes, and pandemics, can disrupt business operations and reduce capital accumulation.

LIMITED MARKET OPPORTUNITIES: Many African countries have small domestic markets, which can limit the potential for business growth and investment.

 

[Axis]

You are absolutely right for pointing out that capital please a very important role and feature in a business start-up situation. And whether an individual is planning of establishing a large or small-scale business it is definitely impossible for him or her to establish a business in which he or she has in mind without having sufficient and adequate capital. In some areas of west Africa is true that accumulation of capital is absolutely difficult due to some negative factors that is basically affecting the growth and development of certain businesses and implementation and establishment of certain business Ideas interested and valued individuals and entrepreneurs possibly have in mind.

Political instability is basically one of the major and paramount reason why capital accumulation is absolutely hard and difficult. To further explain, the government do not care about the welfare of its people however they do not care about the financial welfare and growth of business in the economy forgetting that it plays a very important role in growth and development of the entire economic.