African Finance Ministers Discuss Economic Recession

30 March 2010

Senior African finance officials say per capita income in Africa fell for the first time in a decade because of the global economic recession. But during a meeting in Malawi they also noted that the economic rebound had improved growth prospects for this year.

African finance ministers and central bank governors have concluded a two-day meeting in Lilongwe that focused on ways to soften the effects of global economic shocks on Africa.

They were among several-hundred delegates from across the continent to attend a joint meeting of the African Union and the U.N. Economic Commission for Africa.

ECA Executive-Secretary Abdoulie Janne told delegates Africa's projected economic growth rate for this year would improve to 4.3 percent from 1.6 percent last year, although he noted this rate is still too low to meet the Millennium Goal of halving poverty in five years.

"Moreover, global recovery remains fragile and given the vulnerability of our economies to external shocks it is only prudent to remain vigilant and to imbibe the hard-learned lessons of global economic crisis," said Janne.

Janne said the global economic crisis had compelled a global re-think of development strategies and policies.

The ministers heard the global recession had cut demand for commodities, a major source of export revenue in Africa. This hurt economic growth and destroyed jobs.