Africa Needs Policies To Protect It From Global Conditions —Economic Commission For Africa

The Economic Commission for Africa on Wednesday highlighted the need for African countries to formulate policies that can protect it from global economic conditions.

In a statement that was released by the Communications Section of the ECA,  Adam Elhiraika, the Director of the Macroeconomics and Governance Division said this in his presentation to the 38th meeting of the Committee of Experts of the Conference of African Ministers of Finance, Planning and Economic Development, which held in Marrakesh.

Mr. Elhiraika, who gave an overview of Africa’s recent economic and social development performance said, “To reduce vulnerabilities from global economic conditions, such as the tightening of global financial markets, currency fluctuations, capital outflows and volatility of commodity process, African countries need to enhance resilience through the appropriate combination of fiscal, monetary, exchange rate and prudential policies to maintain their growth momentum.

“There is also a need for policies that can help improve debt management on the continent and to harness urbanisation as a strong vehicle for generating fiscal revenues to finance sustainable development.”

Mr. Elhiraika said Africa’s growth is projected to remain strong, moderating around 3.2% in 2018, but expected to recover to 3.4% in 2019 and 3.8% in 2020.

The continent’s fiscal and current account balance narrowed though still relatively high while high debt levels continue to pose a concern to long-term development.

The ECA Director said the African Continental Free Trade Agreement is expected to enhance intra-African trade and growth with marginal losses in revenues.

“Africa has made good progress in social outcomes, but inclusion, especially in areas of health and education, remains elusive,” he told the meeting of experts that opened ahead of the Conference of African Ministers of Finance, Planning and Economic Development.