Africa News blog
African business, politics and lifestyle
Tom Cargill, Assistant Head of the Africa Programme at Chatham House, writes on the West’s relationship with Africa:
French President Nicholas Sarkozy put it best this week, when he spoke of the increasing important of Africa in Global Affairs: “Africa’s formidable demographics and its considerable resources make it the main reservoir for world economic growth in the decades to come.”
This is indeed the principal finding of our new Chatham House Report ‘Our Common Strategic Interests: Africa’s role in the post G8 World’. Yet so far there is very little evidence that Western policy makers, publics, or most importantly, businesses, are waking up to the opportunities that are slowly draining away from them with each passing day.
For the past ten years, fundamental change has been taking place across large parts of Africa. Growth rates and stability have increased. Political, regulatory and security reform have deepened. Increasing investment from China, but also Brazil, India, Turkey, South Korea, Argentina and other ambitious emerging powers has acted for the most part as an accelerant.
Before the G20 meeting, there was a lot of talk inside and outside Africa about making sure the continent did not get left out while the world’s richest and most powerful set out plans to save their own economies.******So how did Africa fare?******On the face of things, perhaps not too badly.******“Our global plan for recovery must have at its heart the needs and jobs of hard-working families, not just in developed countries but in emerging markets and the poorest countries of the world too,” the communique says in paragraph 3.******In concrete terms:******• Resources available to the IMF will be trebled to $750 billion.***• There will be support for a new allocation of Special Drawing Rights of $250 billion – something that could help poor countries***• There will be support for $100 billion more lending by Multilateral Development Banks (those include the World Bank Group and the African Development Bank)***• There will be $250 billion support for trade finance.***• Use will be made of resources from IMF gold sales “for concessional finance for the poorest countries”.***• Global financial institutions will be strengthened and reformed, ensuring that emerging and developing economies, including the poorest, must have greater voice and representation.”******The point on the gold sales was something for which Africa, represented at the summit by Ethiopian Prime Minister Meles Zenawi, had made a particular push.******But not all appeared so impressed. In East Africa based Business Daily, Allan Odhiambo’s piece was headlined “Africa thrown to back burner at G20 meeting.”******According to Nigeria’s ThisDay newspaper, President Umaru Yar’Adua’s main lament was the fact that Africa’s most populous country was not there (South Africa, with the continent’s biggest economy, was represented).******South Africa’s President Kgalema Motlanthe was quoted as saying he was “quite pleased” with the results of the summit.******How well do you think the G20 did for Africa? Will Africa really have a bigger say over the global financial system in future? Will that help?
- Iraj Abedian is the chief executive of Pan-African Investment & Research Services. The opinions expressed are his own -
Although Africa had no role whatsoever in causing the financial and economic crisis, the prevailing economic meltdown has put at risk Africa’s growth and development prospects.
from The Great Debate:
- Jorge Maia is head of Research and Information for Industrial Development Corporation of South Africa, established in 1940 to promote economic growth and industrial development. The opinions expressed are his own -
Serious shockwaves are hitting Africa's shores as the global economic crisis unfolds.