The Financial Crisis in Africa
Recent trends in global financial markets, in
particular the rapidly diminishing availability of capital experienced
worldwide, are having an increasingly adverse impact on African
countries and on the Bank’s clients.
The African Development Bank (AfDB) Group has been
at the forefront of efforts at analyzing the crisis’ impact on
Africa. It has, among other things, published a paper, titled: “Impact
of the Global Financial and Economic Crisis On Africa.” It
presents a preliminary assessment of the ongoing financial crisis’
impact on African economies. It discusses the direct impact of the
crisis on financial markets, foreign exchange markets and commodity
markets. The study shows that the negative effects will mainly be felt
through trade and capital flows, including foreign direct investment
and migrant remittances. A sectoral analysis is also carried out,
highlighting the impact on tourism and mining. It concludes by a
discussion on some policies that could mitigate the impact of the
crisis.
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