Explain five factors that adversely affect the growth of commerce in West Africa.
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
Correct Answer: Option n
Explanation:
Factors that adversely affect the growth of commerce in West Africa are:
(i) Inadequate capital: Commerce requires a lot of capital to keep pace with trends which most Africans are unable to afford.
(ii) Low per capita income/ Poverty: West Africans have low purchasing power as a result of low income. This leads to consumer resistance.
(iii) Political instability: West Africa has continued to experience short-range change of government which tends to create fear in investors. There is also instability in investment policies.
(iv) Inadequate facilities: Various aids to trade such as banking, warehousing, insurance and transport are inadequate to facilitate growth of commerce.
(v) Poor communication system: Most of the countries in West Africa have no direct telephone link, no internet, etc. This slows down the rate of economic activities.
(vi) Immobility of labour: No free movement of labour and trade among West African countries.
(vii) Prevalent business frauds: Loss of faith in cheque system of payment compounded by high prevalent of business fraud, e.g, Advanced Fee Fraud popularly known as 419.
(viii) West Africans as primary producers: They produce and sell the same type of agricultural products, thus generating low volume of trade and absence of large market.
Factors that adversely affect the growth of commerce in West Africa are:
(i) Inadequate capital: Commerce requires a lot of capital to keep pace with trends which most Africans are unable to afford.
(ii) Low per capita income/ Poverty: West Africans have low purchasing power as a result of low income. This leads to consumer resistance.
(iii) Political instability: West Africa has continued to experience short-range change of government which tends to create fear in investors. There is also instability in investment policies.
(iv) Inadequate facilities: Various aids to trade such as banking, warehousing, insurance and transport are inadequate to facilitate growth of commerce.
(v) Poor communication system: Most of the countries in West Africa have no direct telephone link, no internet, etc. This slows down the rate of economic activities.
(vi) Immobility of labour: No free movement of labour and trade among West African countries.
(vii) Prevalent business frauds: Loss of faith in cheque system of payment compounded by high prevalent of business fraud, e.g, Advanced Fee Fraud popularly known as 419.
(viii) West Africans as primary producers: They produce and sell the same type of agricultural products, thus generating low volume of trade and absence of large market.