'Trade among yourselves' : African countries advised to create economic buffers

Thursday, May 06, 2010

'Trade among yourselves' : African countries advised to create economic buffers

'Trade among yourselves' : African countries advised to create economic buffers
By AFP and Sapa
Thu 06 May 2010, 09:20 CAT

INTER-CONTINENTAL: Ajai Chowdhry, chairman of India's HCL Infosystems, Sasol CEO Pat Davies, Anna Tibaijuka, executive director of UN Habitat, Joergen Ole Haslestad, president of Yara International in Norway and Old Mutual CEO Kuseni Douglas Dlamini at the 20th World Economic Forum on Africa in Tanzania Picture: THOMAS MUKOYA/REUTERS

African countries must restructure their economies and boost trade among themselves to ride out economic storms, a World Economic Forum economist said yesterday.

Jennifer Blanke, a senior economist with the forum - whose discussions on Africa opened in Dar es Salaam, Tanzania, yesterday - said Africa could insure itself against the effects of another global meltdown by improving infrastructure, governance and financial institutions as well as adopting new technologies.

"These are the issues that will enhance Africa's growth potential and prepare African economies more to face any kind of disruption," Blanke said.

She said the limited effect of the slowdown on African economies was a short-term advantage.

"The lesson is to strengthen your economies so that when this happens again - and it will - you are better placed to ride out the storm."

Although Africa was spared much of the ravages of the global downturn, there was increased pressure on the continent from reduced trade, declining remittances and dwindling foreign investment.

"What really affected Africa was a decline in demand and a decline in prices that Africa was getting for its goods. If Africans are buying more of their own stuff then you have less of a concern over demand from other parts of the world," said Blanke.

Eleven African heads of state and government, including President Jacob Zuma, are attending the 20th World Economic Forum on Africa, to discuss strategies in the aftermath of the economic downturn.

Zuma is accompanied by Finance Minister Pravin Gordhan, Science and Technology Minister Naledi Pandor, Water and Environmental Affairs Minister Buyelwa Sonjica, Trade and Industry Minister Rob Davies, Agriculture, Forestry and Fisheries Minister Tina Joemat-Pettersson, and Economic Development Minister Ebrahim Patel.

South African business leaders are also at the meeting.

Tanzanian president Jakaya Kikwete said: "Africa is a continent full of potential. Africa has been growing despite the economic instability that is facing the world today."

Ethiopian Prime Minister Meles Zenawi, Kenyan Prime Minister Raila Odinga and Rwandan President Paul Kagame are at the forum, along with Mozambique's president, Armando Emilio Guebuza, Gabon's Ali-Ben Bongo Ondimba, Zambia's Rupiah Banda and Zimbabwe's prime minister, Morgan Tsvangirai.

Zuma was to address a South African dinner hosted by the World Economic Forum last night.

He will also address the closing plenary session tomorrow on "The redesign of Africa's role in a new global economy", the Presidency said.

The World Economic Forum is a Swiss-based foundation that gathers world and industry leaders for talks on political and economic problems. - timeslive.co.za

Labels: DAR ES SALAAM, REGIONAL INTEGRATION, WORLD ECONOMIC FORUM