African unity to fight crisis

Africa: African countries should promote the increase in domestic investments, infrastructural projects and sub-regional integration in order to confront the deepening economic and financial crisis, bank sources announced.

The chief economist of the African Development Bank (AfDB) Louis Kaskende said that in order to maintain 2008 economic levels, the continent demands at least an additional 50 billion dollar package.

Estimates reveal the Gross Domestic Product of the group of African nations will fall 2.3 percent in 2009, meaning a full percentage point lower than in 2008. GDP growth in Sub-Saharan Africa is expected to fall by 1.4 percent, the lowest rate of growth since 1994.

Kaskende stressed the reorientation of trade towards emerging markets, new macroeconomic reforms and initiatives for debts reduction are all important issues to ensure Africa faces the current world economic recession better.

Analysts say several industries from Sub-Saharan African countries, dependent of exports, as a consequence of the economic impoverishment, are under threat of going bankrupt due to the very poor payment they receive for productions. Dakkar, May 12, Prensa Latina