- Title: SOUTH AFRICA: African reform appears to stall amid global crisis
- Date: 11th June 2009
- Summary: CAPE TOWN, SOUTH AFRICA (JUNE 10, 2009) (REUTERS) VIEWS OF TABLE MOUNTAIN EXTERIOR OF CAPE TOWN CONVENTION CENTER SIGN READING WORLD ECONOMIC FORUM VARIOUS OF DELEGATES AT CONVENTION CENTER NEWS CONFERENCE (SOUNDBITE) (English) NGOZI OKONJO-LWEALA, MANAGING DIRECTOR, WORLD BANK, SAYING: "As you know, this crisis is not just a question of income, it's actually real, when people get hit, when commodities prices fall and they can no longer make an income from their farming, from mining and so on. You know children get pulled out of school because parents cannot afford it and girls are the first ones to be pulled out of school. Families may not make three meals a day. These are real consequences. I think the key issue at the World Economic Forum is what specific options can we discuss that can help solve these problems. The discussion have already started. One key area is agriculture and production of food." JOURNALIST TAKING NOTES ON HIS LAP TOP (SOUNDBITE) (English) SOUD BA'LAWY, CO-CHAIRMAN, WORLD ECONOMIC FORUM IN AFRICA, SAYING: "Africa has problems. They have their issues, for example, infrastructure, issues with respect to education and health care, issues in terms of the overall, I think, business and environment. But I think these challenges can be overcome. When we decided to come, our main objective was to try to kind of find ways to forge much more strategic partnerships, with African countries and companies, in order for us to participate in the economic development of Africa." JOURNALISTS DELEGATES LEAVING NEWS CONFERENCE BALLOON IN THE AIR, WITH INSCRIPTION: " WE ARE WATCHING" VARIOUS OF PEOPLE PROTESTING OUTSIDE CONVENTION CENTRE
- Embargoed: 26th June 2009 13:00
- Keywords:
- Location: South Africa
- Country: South Africa
- Topics: Economic News,Domestic Politics
- Reuters ID: LVA1CNJR0TTP9YG7B83JMZIQGQXG
- Story Text: Economic reforms that helped drive Africa's fastest growth for decades appear to be stalling in the face of the global crisis, a report from international institutions showed on Wednesday (June 10), at the opening of the World Economic Forum (WEF) on Wednesday (June 10) in Cape Town, South Africa.
The World Bank, African Development Bank and World Economic Forum said African states must keep opening up their financial systems and resist protectionist forces to become more competitive.
The Africa Competitiveness Report 2009 gave sub-Saharan African countries an average competitiveness rating of 3.5 and North African countries of 4.0 -- indicating little change from the year before. China has a rating of 4.7.
Economic growth across Africa averaged well over 5 percent a year between 2001 and 2008, the International Monetary Fund says, but is expected to be below 3 percent this year, increasing public pressure for measures to ease the pain.
"Protectionist forces are emerging in response to the global economic crisis, yet such measures will further reduce demand and restrict growth. Africa's leaders must resist domestic political pressures to erect trade barriers," the report said.
Earlier reform efforts had enabled to Africa to weather the the global financial crisis better than feared, according to the World Bank.
But World Bank's managing director, Ngozi Okonjo-Iweala emphasised that Africa was not out of the woods, and that this meeting should find solution to ease the strain on cash strapped Africans.
"As you know, this crisis is not just a question of income, it's actually real, when people get hit, when commodities prices fall, and they can no longer make an income from their farming, from mining and so on. You know children get pulled out of school, because parents cannot afford it and girls are the first ones to be pulled out of school. Families may not make three meals a day, these are real consequences. I think the key issue at the world economic forum is what specific options can we discuss, that can help solve these problems. The discussion have already started, one key area is agriculture and production of food," Okonjo-Iweala, told a World Economic Forum meeting in South Africa.
Others at the WEF meeting, which runs until Friday, struck a positive tone for Africa's outlook, saying the potential shown in the last decade remained intact.
"Africa has problems, they have their issues, for example, infrastructure, issues with respect to education and health care, issues in terms of the overall. I think business and environment, but I think these challenges can be overcome. When we decided to come, our main objective was to try to kind of find ways to forge much more strategic partnerships, with African countries and companies, in order for us to participate in the economic development of Africa," said Soud Ba'lamy of co - chairman of world economic Forum.
Many of the delegates and investors attending the World Bank meeting maintained that Africa withstands the crisis "better than expected". Their investments were performing well and didn't have major problems with respect to the global financial crisis and are looking for more opportunities to invest in Africa. - Copyright Holder: REUTERS
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