Maravi

(HERALD) Govt urged to engage economic powerhouses

COMMENT - Seems like typical neoliberal thinking to me. Any African country's economic transformation will not come about by looking abroad, but looking inside, and develop it's own resources and work forces. As long as the state reinvests mineral wealth in infrastructure and other economic enterprises to raise incomes, development will follow.

Govt urged to engage economic powerhouses
Business Reporter

ZIMBABWE should take the initiative to engage emerging economic powerhouses, as it seeks to increase its presence in Africa, an expect has said.

South Africa-based Frontier Advisory head of research, Ms Hannah Edinger said increased trade between Africa and Brazil, Russia, India and China (BRICs) would transform African economies.

Ms Edinger was speaking at the Zimbabwe Institute of Management annual international management conference held in Nyanga last week.

"Africa has emerged as an important partner for the BRICs and plays an underpinning role to their economic expansion and these countries have recognised the importance of the African continent as a strategic partner in growing global expansion.

"These emerging economic powerhouses have engaged in different ways to establish long-term partnerships with Africa, as such accelerating their political, commercial and social relationships with the continent," she said.

Enhanced involvement of the BRIC countries in Africa has also re-awakened the continent’s traditional economic partners.

She added that, "The key factor to realise in this case is that the rise of the BRIC countries, especially China is foreseeable in the long-term future, hence there is a need for countries like Zimbabwe to engage these countries in the supply of energy".

The demand for resources by the BRIC countries has resulted in the provision of financing to the African continent and investment in much-needed infrastructure.

According to Frontier Advisory the continent presently requires an estimated US$93 billion for infrastructure development. China has in the past two years played a greater role in infrastructure development projects in the Africa.

China-EXIM Bank had this month proposed to release US$430 million for the Zambian Kariba North Bank Extension Project (KNBEP), which is being undertaken by Sino-Hydro Corporation.

The role being played by China in infrastructure development on the continent is based on the realisation that infrastructure is the backbone of economies.

Labels: HANNAH EDINGER, NEOLIBERALISM

posted by MrK @ 9:59 AM