Growth in Africa remains "fragile", according to ADB
The African Development Bank (ADB) said on Thursday in Algiers that the growth of Africa was still "fragile" and completely dependent on the demand for raw materials, developed and emerging countries.
Source : https://www.marocafrik.com/english/Growth-in-Afric...
"The 2008-2009 crisis that still persists showed that the slowdown in demand in importing countries for raw materials from Africa has inevitably been felt in the balance of payments exporting African countries," said Ms. Diarra Thioune Assitan,ADB representative in Algeria, at a press conference.
"There is a strong correlation between international demand for raw materials from Africa and the growth of the continent,"noted Thioune during a meeting with the press, within the scope of the media campaign meetings for the 2012 Annual Meeting of the bank's planned May 31 to June 1 in Arusha, Tanzania.
In contrast to the rest of the continents, Africa was "currently showing sluggish growth rates, accompanied by a significant imported inflation," the representative of ADB noted.
Several African countries have found themselves in "inflationary positions",aggravated by imported inflation, noted Thioune Assitan advancing an inflation figure of 6% in 2011 for the African continent.
Even when these growth rates are high, they are entirely related to exogenous factors, which increases the fragility of African countries.
She said Africa must stop " reproducing the pattern of the continent as an exporter of raw materials", learning to give value added to its natural resources. This course could be achieved with a mastery of technology and the encouragement of research, she notes.
Moreover, Thioune Assitan continued, ADB has increased the selectivity by giving priority in its funding to higher education and research. Added to this, governance, infrastructure and private sector development which are also the operational priorities of the ADB in its 2008-2012 program, she said.
During its annual meeting in Arusha, the ADB will discuss the promotion of growth "it must make it sustainable."
These meetings are to be held this year under the theme "Africa and the new global landscape: Challenges and Opportunities", which will identify the guidelines of the Bank's strategy for the decade 2013-2022, she said.
Besides the national consultation, held last April in Algeria during the preparation of this long-term strategy of the ADB and the vision of Africa in 2022,she raised the contribution of leading Algerian experts which could be exploited in the context of prospects for cooperation between Algeria and the Bank.
Founded in 1963 in Sudan, by its 78 ADB member countries, is the first financial institution in Africa, benefiting from the AAA + rating.
At the end of December 2010, its authorized capital was 67.6 billion units of account UC (UC = 1.53 dollars) but its subscribed capital has not exceeded 23.9 billion UC at that time . Algeria is the fourth largest shareholder of the bank holding 4% of the capital, according to figures presented by Thioune Assitan.
However, Algeria is seeking more ADB support, for several years of funding, under a government direction to eliminate the need for external borrowing. Since 2006, cooperation between the African bank and Algeria has been focused only on technical assistance, implementation of economic and sector work.
The ADB has financed $ 3.2 billion worth of projects in Algeria, during the period when the latter resorted to these loans. The ADB headquarters was transferred to Tunis in 2003, when the institution has left Abidjan, due to instability in Côte d'Ivoire.
"There is a strong correlation between international demand for raw materials from Africa and the growth of the continent,"noted Thioune during a meeting with the press, within the scope of the media campaign meetings for the 2012 Annual Meeting of the bank's planned May 31 to June 1 in Arusha, Tanzania.
In contrast to the rest of the continents, Africa was "currently showing sluggish growth rates, accompanied by a significant imported inflation," the representative of ADB noted.
Several African countries have found themselves in "inflationary positions",aggravated by imported inflation, noted Thioune Assitan advancing an inflation figure of 6% in 2011 for the African continent.
Even when these growth rates are high, they are entirely related to exogenous factors, which increases the fragility of African countries.
She said Africa must stop " reproducing the pattern of the continent as an exporter of raw materials", learning to give value added to its natural resources. This course could be achieved with a mastery of technology and the encouragement of research, she notes.
Moreover, Thioune Assitan continued, ADB has increased the selectivity by giving priority in its funding to higher education and research. Added to this, governance, infrastructure and private sector development which are also the operational priorities of the ADB in its 2008-2012 program, she said.
During its annual meeting in Arusha, the ADB will discuss the promotion of growth "it must make it sustainable."
These meetings are to be held this year under the theme "Africa and the new global landscape: Challenges and Opportunities", which will identify the guidelines of the Bank's strategy for the decade 2013-2022, she said.
Besides the national consultation, held last April in Algeria during the preparation of this long-term strategy of the ADB and the vision of Africa in 2022,she raised the contribution of leading Algerian experts which could be exploited in the context of prospects for cooperation between Algeria and the Bank.
Founded in 1963 in Sudan, by its 78 ADB member countries, is the first financial institution in Africa, benefiting from the AAA + rating.
At the end of December 2010, its authorized capital was 67.6 billion units of account UC (UC = 1.53 dollars) but its subscribed capital has not exceeded 23.9 billion UC at that time . Algeria is the fourth largest shareholder of the bank holding 4% of the capital, according to figures presented by Thioune Assitan.
However, Algeria is seeking more ADB support, for several years of funding, under a government direction to eliminate the need for external borrowing. Since 2006, cooperation between the African bank and Algeria has been focused only on technical assistance, implementation of economic and sector work.
The ADB has financed $ 3.2 billion worth of projects in Algeria, during the period when the latter resorted to these loans. The ADB headquarters was transferred to Tunis in 2003, when the institution has left Abidjan, due to instability in Côte d'Ivoire.
Source : https://www.marocafrik.com/english/Growth-in-Afric...