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Africa is not immune to current global financial slowdown – UNECA boss
Addis Ababa, Ethiopia 27 February 2009 - The Deputy Executive Secretary of the UN Economic Commission for Africa, Ms Lalla Ben Barka, today told a Conference on Economic Trends and Investment Opportunities in Africa that the continent has begun to feel the pinch of the global financial crisis, despite earlier predictions to the contrary.
Without contesting economists who have suggested that because Africa's financial system is not so integrated into globalized structures, the continent might not be hard-hit by the current global economic slowdown, Ms Barka pointed out that the global slowdown is already having a negative effect on Africa's economic growth rates.
“We now know that the continent's overall rate of economic growth for 2009, although it is still expected to be positive, will only be a fraction of the robust performance that the continent has been registering during this decade. In the medium term, this is situation is also likely to worsen as exports growth and capital flows fall, and African countries experience higher borrowing costs”, she pointed out.
The conference was organized by the Italian embassy in Ethiopia on the occasion of a visit to Addis Ababa by the Italian Secretary of State for Economic Development, Hon. Adolfo Urso, who was accompanied by Ambassador Umberto Vattani, President of the Italian Trade Commission.
Italy is in line to assume the reins of the G-8 Presidency. It comes at a time when the many countries are salvaging companies and banks by taking large shares in them - raising the specter of return to state ownership and trade barriers.
Ms Ben Barka said that, “given these uncertain times”, it is important to reflect closely on the indispensability of trade in promoting development, because a positive relationship exists between trade and economic growth.
“Unfortunately, this positive correlation and outcome, which has played a part in encouraging governments to mainstream trade in national and international development strategies, is now under threat”, she warned.
She called on Africa to fight theories that undermine the relationship between trade and development, “as trade is indispensable to promoting development”.
“For this reason, the message from Africa is that this is not the time to curtail trade through protection and other inward looking policies. Such actions would drive not only African economies, but also the global economy into a vicious circle of falling per capita incomes”, she continued.
The message resonated well with a large delegation of Italian businessmen and investors who are following the minister.
She expressed the hope that during Italy 's Presidency, clear and actionable recommendations would be reached, especially on how to maintain and heighten the pace of implementation of previous G-8 commitments in the area of trade and investments with regards to Africa .
The Chairman of the African Union Commission, Mr Jean ping, and the Ethiopian Minister of Finance and Economic Development, Ato Sufian Ahmed, also addressed the conference.
:: Full Statement
Issued by the ECA Information and Communication Service P.O. Box 3001
Addis Ababa Ethiopia
Tel: 251 11 5445098 Fax: +251 11 5510365 E-mail: ecainfo@uneca.org Web: www.uneca.org
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