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South Africa’s Zuma: Africa Must Unite Against Global Crisis

South African News Updates

11 June 2009

Africa, hit by lower exports and commodity prices, must find its own ways to deal with the global financial crisis, South African President Jacob Zuma said on Wednesday.

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.

"Africa has its own mechanisms of responding to the crisis, as do other regions of the world," Zuma told a World Economic Forum in South Africa, the continent's biggest economy. He did not elaborate.

South Africa is in the grips of its first recession in 17 years. Analysts and the Treasury says recovery will depend on a revival of the world economy.

Falling exports and lower commodity prices have seen economic growth crimp across Africa.

Zuma, who faces pressure from unions to increase government spending and change economic policies to help workers avoid job losses, tried to ease concerns over global financial woes.

"We view the economic downturn as providing challenges and opportunities for the continent and the developing world in general," said Zuma.

Although he encouraged African states to depend on themselves and make good use of their natural resources, Zuma warned against "shutting out other markets".

He said African trade ministers were concerned about the "growing protectionist" measures in developed countries.

"This includes the crowding out of credit through the huge bailout packages and adopting protectionist trade measures," said Zuma.

EsinIslam.Com

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