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What about Africa?
19 Oct 2008
World leaders are grappling with volatile financial markets and the impact this has on several First World countries. But what about developing countries and Africa?
As countries around the world are trying to come to grips with the crisis in the financial markets, speculations are rife about how this will impact on Africa.
Countries on the African continent are very much dependent on investment and aid and some experts have expressed fears about the trickling up of funds in the current climate.
But others say that now is precisely the time for investment in Africa.
The continent's biggest economy, South Africa, saw some volatility in its currency this week, despite the fact that many economists initially said they believed the country would not suffer too much from the global crisis. Now it appears growth rate figures, inflation and budget surpluses will be affected after all.
Investment
While many developed nations may fall into recession, it is not expected that the SA economy will follow suit, though lower growth rates are expected.
The Economist this week published some good news about Africa, saying it expected the continent to suffer less that other countries, mentioning several good developments in Africa.
It was reported too that the World Economic Forum rejected the idea that Africa was an instantly riskier investment than Europe or the United States. South Africa, the African country worst affected by the credit crisis so far, beat out Switzerland, Germany, Britain and the US.
Mostly, it is feared that the global crisis will affect growth rates, with countries cutting down on exports from Africa and loans becoming more difficult.
It is also feared that the First World will not be able to fulfil their promises made in terms of aid, to the world's poorest countries. This will affect Africa directly.
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