For many African nations, the year 2016 is presenting some difficult challenges. For the second time since 1960, the commodity exports that bring in most of Africa’s revenue have suffered severe world price declines. 

Between 1960 and 1980, high world prices for African commodity exports, especially crude oil, minerals such as copper, iron ore, manganese, and cobalt, brought African governments considerable revenue. Unfortunately, that revenue was not used to finance economic diversity, especially in agro-industry, manufacturing, transportation and intra-African trade. As a result, when world commodity prices dropped heavily between 1975 and 1980, many African countries found themselves heavily in debt and unable to service those debts. Too much of the earlier wealth was squandered on the financing of white elephants, the disastrous nationalization of private companies, and sadly, extensive corruption.