Colonialism was the greatest contributor to underdevelopment in Africa as its purpose was to make the colonies producers of raw materials for the colonizers. Their raw material and labor became the fuel of the western factories and did not contribute to their own development. The terms of trade were very unfair, labor exploited and taxes very high which meant that during entire colonial period, their resources were served in supporting the economies of colonizers. Another factor is their own policies after decolonization and their diversity. There are so many tribes in Africa and their loyalty lies with these tribes not with the nation or state which made them unable to progress. Entire history of Africa is strained with wars that further aggravated the plight of the African people and resulted in the loss of precious capital. This and cup de tats have de stabilized the economies and made them unattractive for foreign investors. There is a lot of corruption and money for the development of facilities is transferred out of the country. International aid given to them had very high interest rates and led to an increase in their debt.