Africa: Global Crunch Gives Continent's Leaders Responsibilities

27 March 2009
allAfrica.com

Although the current global economic crisis was triggered by the financial practices of industrialized nations, African leaders have important responsibilities to meet if they are to mitigate the effects of the crisis on the continent, a range of prominent African figures argue today.

In a publication released ahead of next week's G20 summit on the crisis, 11 leaders and development experts from within and outside the continent detail the anticipated effects of the crisis and propose solutions to help African cope with it.

Growth in Africa is likely to slow by nearly half, dropping from a rate of six percent to 3.5 percent, says Festus Mogae, the former Botswana president.

The continent will lose about U.S. $40 billion in gross domestic product in 2009, adds Simon Maxwell of the British-based Overseas Development Institute: "That is equivalent to nearly two weeks' worth of income lost for every single one of Africa's 900 million women, men and children," he adds.

While main focus of the publication lobbies for a stronger voice for Africa in global governance institutions, African contributors also direct specific appeals to the continent's leaders. Among them:

  • "Leaders on the continent must shoulder the dual burden of emphasising the importance of maintaining growth while simultaneously speeding up the pace of reform to ensure the progress achieved over the last few years is not lost." - Festus Mogae
  •  "African policymakers... should avoid making panic decisions that could adversely affect growth. The temptation in times of weakening fiscal positions is to slash allocation of funds for infrastructure development. It is critically important that African economies continue to invest in infrastructure – which holds the key to improving the investment climate and boosting regional connectivity." - Benno Ndulu, governor of the Central Bank of Tanzania
  • "Political leaders have a responsibility to ensure they stick to the path of fiscal responsibility that has yielded the gains witnessed so far. They must also resist the temptation to enhance the role of the state in business. The global financial crisis notwithstanding, it remains a fact the best way for the continent to achieve its vast potential is for the state to play an aggressive role in facilitating a good environment for business while letting the private sector drive growth." - Gilbert Houngbo, Prime Minister of Togo
  • "Policymakers should ensure that the prudent macro-economic policies that have yielded accelerated growth are maintained, despite the downturn. In particular, there is need to maintain or increase expenditure on infrastructure development, education and health." - Goodall Gondwe, Malawian finance minister
  •  "Africa... should do more to encourage productivity on the continent, while maintaining sound macroeconomic policies. The most visible resource that countries such as Botswana have, apart from minerals, is its people. Boosting productivity will go a long way in attracting investment and enhancing the process of diversification of African economies." - Linah Mohohlo, governor of the Bank of Botswana.
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