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Finance Africa’s development, Ezekwesili advises G20 nations

Finance Africa’s development, Ezekwesili advises G20 nations
Written by Kabanda Chulu
Thursday, May 14, 2009 3:50:39 PM

WORLD Bank vice-president for Africa Obiageli Ezekwesili has said the next summit of the group of 20 (G20) nations must focus on financing development to minimise the negative impact of the global economic crisis on Africa.

And Ezekwesili has warned that those who may be tempted to view Africa as a case of charity will regret because the continent has become a vital and strategic business destination with many companies boasting of some of the best profit margins.

Addressing the 2009 Annual Conference on Tuesday organised by the Washington-based Society for International Development under the theme ‘Finding Common Ground on Foreign Aid’, Ezekwesili stated that despite being severely affected by the crisis, rich countries must resist the temptation to slash foreign aid and resort to protectionist policies.

“Aid cannot be the panacea (solution) either, but must act as a catalyst to trade and development because the continent now has a leadership even more committed to reforms, governing more responsibly and making the right kinds of policy choices to use any resources in transparent, efficient and accountable ways,” Ezekwesili stated. “But the United States and other rich countries should continue to provide leadership in ensuring that pledges to double aid to Africa by 2010 are honoured and this is why the next G20 summit should focus on financing infrastructure development since developing countries will be able to take advantage of trade opportunities.”

The US pledged contribution of US $3.7 billion to last year’s record US $42 billion 15th replenishment of the International Development Association (IDA), the soft lending arm of the World Bank that provides grants and interest-free credits to poor countries, is pending authorisation and appropriation before the US Congress.

But Ezekwesili argued that initiatives to stimulate the economies of developed nations should not focus exclusively on national challenges, if a truly sustainable and global recovery from the crisis was to be achieved.

She cautioned against those who may be tempted to view Africa as a case of charity.

“The continent has become a vital and strategic business destination and firms investing there boast some of the best profit margins,” stated Ezekwesili.

Before the global economic crisis, Africa was generally perceived as turning the corner. Average annual growth rates were 5.7 per cent over a decade before a ‘crisis’ that was not even of Africa’s making triggered a collapse in commodity prices, a decline in private capital flows, a decrease in remittances and a fall in foreign aid.

As a direct result of the crisis, Africa’s GDP growth is now expected to be a mere 1.7 per cent in 2009, down from earlier forecasts of 6.4 per cent and way below the average population growth rate of 3.3 per cent.

Labels: DEVELOPMENT, G20, OBIAGELI EZEKWELISI

posted by MrK @ 2:53 PM