Why capital accumulation is low in West Africa.

[TOZZIBLINKZ]

Capital accumulation is otherwise known as capital formation . To be more elaborate , capital accumulation refers to the increasing country stock of a particular country that is the increasing net investment in the form of fixed or non-current assets . For a country like Nigeria to accumulate more capital there must be an increasing rate of saving and a reduction rate in the consumption of essential goods . it is therefore important to know that the rate of economic development and growth of a particular country is totally directly related to the rate of capital formation and accumulation . In regions like West Africa some factors have hindered and obstruct capital formation thereby leading to the economic stability of most countries in West Africa .

IRRELEVANT EXPENDITURE : many west African countries as a result of their government trying to satisfy the desires and want of their people get involved in wasteful and irrelevant expenditure . Although their goal was to embark on a prestigious investment , but in most cases these investments are non-productive in nature resulting in low capital formation .

URGE TO CONSUME : the urge to consume by many individuals living in West Africa is higher than the urge to save . This is as a result of their high taste to import rather than exporting , and as a result of these low investment and savings tends to occur leading to low capital formation .

 

[Good-Guy]

I am sure that capital accumulation is a challenge for many people living in different parts of the world. I live in a country where the rate of inflation is far much higher than many African countries. People are spending more money than they are earning. You are quite right when you said that people have a much higher desire to spend money and they have a lower desire to save it. However, apart from that, many people are simply not able to save money even if they have the desire to save money due to inflation.

I remember making a budget and living on just 70 cents a day. I was just trying to challenge myself so that I could save more and more money, but it is so hard to do that. I just wonder how come a poor person would survive in the country. So capital accumulation is not a problem in Africa rather it is a big problem in many parts of the world. The best way to resolve this problem is to make a budge and make a plan. You must manage your money in a great manner and try to spend money only if you think that you need to spend it.

 

[Kingsley]

I have seen many claim that the relevance of a good business proposals outweighs the power that owning capital may give. Why this may see like it is a real fact, but we can not take away the place of capital in starting up any business. As it will seen almost impossible to start a business without the use of capital. Capital has shown to be a major problem here in Africa and I can even say more about my particular country as we have so many with brilliant ideas but are all suffering from inadequate funds or outright lack of funds to make their business dreams and plans to come to reality.

When we look at the root cause of why capital accumulation is a thing of challenge here in Africa we will see alot of reasons why this is so, one of the basic reason is what I see as pure greed. Greed on the part of the leaders I why people or true entrepreneurs are finding it difficult to raise funds. The leaders rather prefers to gather every penny from the system and spend it on capital flights and other frivolous expenditures. They eat the common wealth of the people.

 

[dudurewa]

The government will not create an enabling environment that will make businesses thrive. This has many embedded factors to it and what holds the most portion about this is the greed of the leaders which transcends into the livelihood of every individual in the society. To get through this you have to disassociate yourself from the mental setback that can give you as an entrepreneur.