Africa not ready for capitalism
Dr. Peregrino Brimah of ENDS or Every Nigerian Do Something says that while Africapitalism is a powerful way to put international funding to Africa through capitalist ventures, the region is not ready for it. In his article entitled "Is Africapitalism Good Or Bad For Africa?" which appeared on the ENDS website, Dr. Brimah said that prerequisites must be met before capitalism can be successful. One of these is trust, the way the US sells bonds which are bought based on "trust." He wrote that Africa has not yet arrived at the stage where there is trust.
He wrote, "Can there be a free market where there is no middle class? This is the reason why the United States gives monthly employment records. There are two factors that predict the success and viability of capital societies-the employment report, which indicates purchase power; and the tax system." He added that in Nigeria and the rest of Africa, illicit cash flows were more than the taxes that were paid. This is why capitalism is not suitable in Africa.
Brimah adds, "Who will buy non essentials?" He said that without a middle class and a dearth in jobs, Africa capitalists concentrate their investments towards essential utilities in order to make the most profits. They don't pour money in luxury items the way Europe and American venture capitalists do.
He added that Africapitalists get the support of the government. Dr. Brimah wrote, "Their success is enforced by the government in top-down policies, banning all small business and middle men competition."
Dr. Brimah called Africapitalism a bold method of promoting personal interest. He said this is not an honest reflection of reality and is not in the best interest Africa at this point. He said, "What is beautifully branded and offered is get-rich-quick, risky but equally rewarding, exploitative investment opportunities in naked Africa."