Income loss to African Regions due to defective CFI

African Economic Communities are losing billions worth of income and development to subtraction. The EAC loses US$1.13 billion per day, Comesa loses the equivalent of US$2.021 billion per day to a defective CFI, income that could profoundly develop Comesa member states. SADC member states lose US$2.026 billion worth of useful income [per day].

As mentioned earlier, these are not hypothetical or theoretical losses in revenue, these are real losses in revenue that can be verified using accountants and auditors, and by a simple empirical test as demonstrated earlier.

Losses to regional African governments due to a defective Circular Flow of Income (CFI) are alarming and there is a moral and legal imperative that these losses, having been identified, are mitigated against.

The fact that a poorly designed or defective CFI creates a daily loss of income for ECOWAS member states of US$3.633 billion (PPP) per day, SADC US$2.026 billion, African Economic Community (AEC) US$5.642 billion per day, COMESA US$2.021 billion per day is cause for concern.

These losses in income, that could empower governments to do more in terms of development and be applied to better the lives of the citizens of these regions, are cause for concern, especially in light of the fact that many African nations grapple with poverty, debt management problems and resource constraints. The fact that they are caused by a defective CFI and can be corrected with intervention makes it imperative that action to stem this loss in useful income be addressed by correcting the CFI.

Angola loses US$290 million per day, Kenya loses US$241.5 million per day to the flawed CFI, both Nigeria and South Africa lose US$ 1 billion of taxable income per day. Egypt loses US$685 million per day. African Union member states lose US$2.215 trillion per year to the defective CFI, which is equivalent to US$6.085 billion per day. This loss is more than it would cost to build the Panama Canal Expansion Project (Panamax) every day (US$5.25 billion). (See the simple empirical test for evidence of this loss)
Panamax: Expansion of the Panama Canal cost US$5.25 billion. African Union member states lose US$6.085 billion every day to a defective circular flow of income (CFI). This is equal to losing income equal to building a
a Panamax every single day. The comparison to Panamax is made here to emphasize
to African leaders the loss in infrastructure development.

Countering these losses using Split Velocity (SV-Tech) can be used to solve many of the problems related to scarcity African countries face. These losses and their recovery provides a conclusive cause and solution concerning why African nations, despite political emancipation have struggled with persistent underdevelopment and with attaining economic liberation. Using SV-Tech this final frontier will be achieved.

The wealth that the SV-Tech model will bring African nations and their citizens will not only be profound, it will bring about a transformation unlike any other.

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