Wednesday, October 29, 2025

Capitalism vs Socialism for an Africa in Need of Rapid Development


In my view, Marx’s analysis and contribution to understanding societal structures is unquestionable. On the other hand, China’s application of capital presents an interesting case for the success of capitalism.

The principles that can be drawn from Socialism—particularly in wealth distribution—should be aggressively implemented, but so should the wealth-creation aspects of capitalism. As I see it, we should learn from history: harmful practices ought to be discarded or tempered, while their beneficial elements should be maximized.

Ray Dalio, the hedge fund billionaire, aptly observed in his book Principles for Dealing with the Changing World Order, that capitalism knows how to grow the pie, but not how to share it, while socialism knows how to share the pie, but struggles to grow it fast enough. This concept resonates with Deng Xiaoping’s analogy of the white and black cat: the issue isn’t whether one follows capitalism or socialism, but rather how, when, and where these systems are applied.

From China’s example, we learn that the state should strive to maintain its integrity and act as the arbiter of society—a function that can in most cases be achieved if it is socialist. On the other hand, private individuals should be engaged and encouraged to create wealth. The state may play a strategic role in areas related to national security, but at the same time, there should be a concerted effort to encourage private enterprise. The state should incentivize private enterprises contributing significantly to the economy, but always ensure that the majority’s interests are protected.

Most developed countries are following this mixed approach—be it China, the United States, or Germany—but the difference lies in the degree of state control. In many Western countries, private capital has overtaken and even directed the political course of the nation. In contrast, China maintains an independent state that acts as a referee, ensuring that capital does not conflict with the interests of the majority.

The political scientist Eric Li aptly described China as a capitalistic country, but not a capitalist state. This means that while China uses capital and has a market-oriented economy, the interests of capital cannot supersede the interests of the majority represented by the Chinese state. On the other hand, the United States can be described as a capitalist state, where capital has taken over the political system, and in many cases, the interests of the wealthy overshadow those of the majority.

The lesson is clear for Africa: we must learn quickly and avoid being overly dogmatic. The goal is to lift the majority out of poverty and misery, and this must be done through an independent state capable of defending itself from external interference. Without such sovereignty, independent planning and action cannot occur.

Currently, the majority of African nations lack this capability—they are neither independent nor able to ward off foreign interference. Hence, Kwame Nkrumah’s solution remains relevant today: the unification of Africa is essential for gaining the power to defend ourselves from more powerful countries like the U.S., EU, China, India, and Russia.

Once the ability to defend itself is established, Africa can begin reconstruction. This includes building a continental railway, laying down fiber optic cables, and providing energy for industry and for the majority of the population (at least 80% should have access to electricity). Only then can we start to seriously talk about a Continental Free Trade Area. For now, discussions of the African Continental Free Trade Area are premature without these four critical pillars:

  1. Continental Sovereignty
  2. Continental Railway Platform
  3. Continental Communication Platform
  4. Continental Energy/Power Platforms
The African Railway Triangle Network Master Plan (ARTNMP) Copyright Kwame Gonza

China’s recent takeover of the automobile industry from Western companies highlights this reality: if Africa wants to compete globally, we must be able to mass-produce and do so efficiently. We need an integrated market as a buffer for internal growth before entering global competition. This reality is what makes Nkrumah’s analysis the most accurate we will ever get.

While mistakes may occur along the way, these can be corrected—but not without independence and sovereignty. The fragmented African states have proved incapable of achieving real political independence and effective action.

The solution is indeed clear: Africa’s future must be entrusted to a Pan-African political organization capable of unifying the continent’s efforts and resources for rapid reconstruction. In today’s world, where information flows freely and technological advancements are reshaping societies, Africa can no longer afford to be led by fragmented leadership and incompetent heads of state who lack a vision for the future

The path forward requires a united, coordinated effort to:

  1. Achieve Continental Sovereignty – African states must be free from external interference and neocolonial manipulation. This requires a coordinated defense strategy, stronger governance, and the establishment of institutions that uphold sovereignty and continental decision-making.
  2. Rebuild Infrastructure for Development – Africa’s development hinges on large-scale infrastructure projects, including a continental railway system, integrated communication networks, and renewable energy platforms. These are critical foundations for industrialization and economic growth.
  3. Promote Continental Markets – A unified Africa must create a continental market that fosters internal trade and competition. By protecting local industries and encouraging manufacturing, Africa can ensure that raw materials are transformed into finished products on the continent, creating jobs and reducing dependency on foreign markets.
  4. Encourage Pan-African Private Sector Growth – African businesses, like those led by visionaries such as Aliko Dangote and McDan McKorley, must be empowered to drive the continent’s growth. A Pan-African political organization like the African Continental Unity Party (ACUP) must protect and promote the interests of African enterprises, ensuring they are not undermined by foreign capital and external pressures.
  5. Champion Pan-African Ideals – Africa’s fragmented states need a unified political vision rooted in Pan-Africanism. This vision must prioritize the rapid advancement of the continent through self-reliance, innovation, and collaboration. By coordinating efforts at all levels—economic, political, and social—a Pan-African organization can challenge the neocolonial systems that continue to exploit the continent.

By rallying behind a united force like the ACUP, Africa can finally break free from the chains of exploitation and underdevelopment, ensuring a future where the continent can compete globally on equal terms. The time for bold, visionary leadership is now, and Africa’s potential is boundless if harnessed with unity, strategic planning, and a collective will for transformation.


Kwame Gonza
Rotating Chairperson
ACUP (African Continental Unity Party)

[email protected]
www.africanacup.org

Kwame Gonza
Kwame Gonza
Kwame Gonza is A Pan Africanist member of the African Continental Unity Party (ACUP), a Mechanical Engineer and the Pioneer of the Africa Railway Triangle Network Master Plan (ARTNMP) which aims to Connect the Whole African Continent. He is a Geopolitical analyst who has been a guest on SABC News South Africa, Press TV Iran, TV Africa Ghana, Oromia Broadcasting TV in Ethiopia and Channel TV Nigeria to Comment and advice on the future of Africa and Pan African Issues.

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