The discussions and debates on whether southern Africa should redeem its position to sharpen its policies took centre stage at the closing ceremony of this year’s World Economic Forum (WEF) on Africa which was held in Cape Town, South Africa.When comparing emerging markets SABMiller CE and WEF co-chair Graham Mackay told delegates at his closing address on Africa that “the sub-Saharan African economies had weathered the global economic crisis in good shape”. Mackay further point out in his economic address that “Africa was not near the top of the list of places that had been most affected by the global economic crisis”.
It was argued that, from a business perspective, Africa got a “worse wrap than it deserved” and that there was more to be optimistic about than negative. While agreeing with this perspective, the “South African President Jacob Zuma told African head of states to provide quality leadership in this trying times of global economic crisis”. He further urged them “to be accountable for any actions and promises they made to their governments”.
The South African President who is also a chairperson of the Southern African Development Community (SADC) stressed the need to engage in partnership to mitigate economic crisis. “We cannot agree that the crisis affects everyone and then disagree on the resolutions necessary to solve the crisis,” said Zuma.
The blog extend its invitation to Vicente Garcia-Delgado, CIVICUS UN Representative for the last 8 years. Vicente believe that this “global financial crisis differs from all previous crises that there is a real opportunity right now for people everywhere to make a huge difference in shaping up our common future”. Garcia-Delgado further encourage southern Africa to be guided by the “UN Follow-up process to propose effective, meaningful changes to the way the world is governed and its economy managed, in a manner that is substantially more just, equitable, stable sustainable for all people than what we now have”. For this reason, it is essential that citizens keep a close eye on what's going on, get informed, educated, share with others, organise in towns and villages, link up with civil society at national and regional levels, participate in preparations, mobilize for action in the coming months and make sure that this “UN Follow-up process” achieves its noble goals.
In discussing the challenges of global financial crisis at citizenry level with Gregory Mfisa, a resident in Tembisa, Kempton Park, Johannesburg. Gregory has recently decided to retire from active work after he has spent 16 years as public servant, now he intends to start his own business. He is very concern that since the recent elections, “South Africa has been faced with a number of strikes where people are demanding better conditions of employment, and increase salary scales and fear of job losses due to current waves of the global financial meltdown that some might not survive the storm”, said Gregory Mfisa.“The impact of the economic crisis should not be mis-judged as it is very strong and people are competing for jobs”, Gregory Mfisa said. It would be very “short-sighted of governments from the global South to start fingering at global financial crisis and not reposition its policies to better prepares its practice”, added Mfisa.
While pressing on the realities of financial crisis of the sub-Saharan, it is also important to note that there had been a "shift in the economic position of Zimbabwe which is viewed as a "nascent" recovery in the economy by the International Monetary Fund (IMF)".
Zimbabwe is being urged to clear its path of more than "$1, 1-billion" in arrears to creditors before it receives consideration for IMF financial aid. The approach from Harare to clear arrears from IMF, World Bank, African Development Bank and Development Bank of Southern Africa (DBSA) will require assistance from donor communities. It is in these reasons that the region should offer financial assistance to stabilize and endorse Zimbabwean economic change under the newly unity government and send a message of confidence to the international community, investors and donors.
In reviewing the impact of the global financial crisis as based on the World Economic Forum, G8
Summit and G-20, including developed economies which have long-term significance of SADC economies; it is too early to tell whether southern Africa has weathered the global economic crisis. It is important to note that most SADC economies rely on exports to grow their economies -the region is likely to see decrease in exports as a result of recession in advanced economies. There is also a talk about remittances to developing economies are a significant source of revenue and these are likely to decrease. The primary commodity prices have plunged at the prospect of falling world demand, foreign direct investment flows are likely to weaken and aid flows will fall.The developed economies should also lay firm foundations to restore worldwide financial stability, lead the international economic recovery and secure a sustainable future for all countries, including southern African economies.
-Watch the Video results for World Economic Forum 2009
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