Washington, DC — Africa has taken "a major hit" from the global economic recession but it can weather the storm, says Erastus Mwencha, deputy chairperson of the African Union Commission. Mwencha visited Washington, DC recently for meetings with United States officials and leaders from international financial institutions. AllAfrica interviewed him on a range of issues, including the continent's regional organizations and piracy off Somalia. Excerpts:
Africa's economic growth has been strong over the past few years but many are worried that the continent is going to be hit by the worldwide recession. How badly will this downturn affect Africa?
Obviously Africa has had a major hit out of the world economic crisis manifesting itself in fostering reduced growth. As you mentioned Africa's performance in the last three to four years was in the range of 5.5 percent, but our current estimates are in the range of 3 percent, which is quite significant...
Africa is therefore very vulnerable and the worst aspects have also manifested themselves in reduced export earnings, reduced remittances, tourism, government budgets and so many others.
The recession also figures to affect aid and investment. What kind of help is Africa looking for to keep the economies on the continent growing?
We are happy in a way that the G20 process took into account Africa's participation and there is some language in the G20 communique that takes into account least-developed countries, but there are some three aspects that we would like to see clarified in that language.
One is [to see how] the G20 stimulus package would cover the African context. Secondly, in terms of resources that will be available for Africa, we know that there was $1.1 trillion that was earmarked , but we don't know how much of this is really earmarked for Africa and the processes for accessing these resources.
Where is the aid money needed the most right now?
The key sector that Africa needs is infrastructure. When I talk of infrastructure, I'm talking of energy, roads, railways and all that, that will help Africa integrate itself. And then of course integration doesn't require huge investment. What it requires is for countries to be able to address those elements that make it difficult for member countries belonging to various regional economic communities to implement their commitments.
What are the African Union's goals for its relationship with the United States?
In our dialogue here in the U.S. of course one of the things that we have looked at is... the World Trade Organization process [aimed at agreeing a new world trade deal] and the process of stimulus.
It's important that trade is not stifled. We have seen African trade with the U.S. decline sharply from U.S. $8 billion to $3 billion [a year], and that is going to have a significant effect on the ground.
The second aspect is the Millennium Challenge Account. We are encouraging and continue to impress upon the U.S. government that… [we should] have a regional component of it – it will have huge return with a regional perspective.
We are also focusing on how we can work together on matters of peace and security on the continent because it's only when we have a stable environment in Africa that we can have private sector investment.
On the subject of integration, we have seen major regional economic integration over the past few years. Do you think the rise of these economic blocks helps or hinders the mission of the AU?
First of all the African Union's main objective is to have integration of the continent and [to have a continent] that is free of conflict… that is prosperous and that is competitive globally. The African Union sees regional economic blocks as building blocks and we have a memorandum of understanding, we have a protocol that brings regional integration groupings to a common dialogue with the African Union to have a common vision.
That vision requires that we monitor, support and assist regional economic communities... There is scope for Africa to trade more with itself and if we are going to talk of this issue it can be done only within the context of regional groupings.
You don't see a risk in the groups hurting cross-regional trade on the continent?
No, because we have already taken steps, first of all to recognize eight regional groupings on the continent. We of course know that uniting the continent is... best done with some more regional groupings and then that's why they've become building blocks. So there's no contradiction between regional economic groupings and African Union.
In fact we have seen regional economic communities invite us to assist the process of coming to work together to remove contradictions that could be generated if they worked in isolation. In the last six months we have seen the East African Community, the Common Market for East and Southern Africa and the Southern African Development Community come together to agree to establish one customs union and they have invited us to assist them with that.
The chair of the African Union, Libyan leader Muammar al-Gaddafi has considered recognizing the new governments of Mauritania and Madagascar, both of which came to power through coups and extra-legal means. The AU itself has taken a different stance. Is this a problem?
I think what is important is what the African Union is saying. All of us can have our individual opinions… I think even if you took any issue in the U.S, you cannot get complete consensus of 100 percent. Individuals will always have their own perspective.
I think the AU's stand is very clear... [It is to] suspend that country from the grouping, and of course what we then… do is assist that country to put back the constitutional process. That is what we are doing in Madagascar; that's what we are doing in Mauritania.
Piracy off the coast of Somalia has been a huge story. What kind of things can the AU do to help fight the piracy and also to help Somalia?
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I think it is to strengthen the Somali government... We are working to strengthen AU forces on the ground and also to support the Somali government to put in place a mechanism that they can police that they can be in charge of their own environment.
