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In: Finance

Apply the PESTEL framework for Africa the continent?

Apply the PESTEL framework for Africa the continent?

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Expert Solution

PESTEL stands for Political, Economic, Social, Technology, Environmental and Legal factors.
PESTEL analysis is used to find out the relative merits and demerits of a country or an economy based on the above mentioned factors.
In Africa, most of the countries have medium to stable political regime with only few countries having situations of civil war. Hence political factor is STABLE.
With regards to economic factor, almost all countries are poor and have low income levels and hence economic condition is LESS THAN AVERAGE.
With regards to social environment, there is stability and a large youth population which could lead to high productivity and hence this factor is CONDUCIVE.
Technologically, the continent is not very developed and still lags the major economies of Europe and North America and though the techical adoption has started to increase, there is still a long way to go. Hence factor rating is LESS THAN AVERAGE
With regards to environmental factor, the continent is known for its rich and diverse flora and fauna. It has a favorable environmental conditions without very harsh climate and weather conditions. So broadly favorable
The legal system in many countries are not very efficient and prone to corruption and hence needs significant improvement


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