Crisis expected to hit Africa worst, says WB

THE GLOBAL financial crisis is likely to hit Africa the worst, although it is the region least integrated into the global economy and financial systems, the World Bank has warned.

The bank and the IMF warn in a report – tabled for their annual spring 2009 meetings – the crisis is endangering the attainment of the 2015 Millennium Development Goals and is creating an emergency for development.It says it is unlikely most of the eight globally agreed goals will be met. These concern hunger, child and maternal mortality, education and progress in combating HIV/Aids, malaria and other diseases.The crisis was impacting on Africa through a sharp fall in revenue-generating areas. This concerned private capital flows, remittances, foreign aid and commodity prices, the bank’s vice president for the Africa region, Obiageli Ezekwesili said.She said private capital flows to Africa – which had risen to US$53 billion (N$470 billion) in 2007 from US$30 billion (N$265 billion) in 2002 – had dried up, forcing a cancellation, delay or postponement of projects.Primary commodity prices had plummeted, hurting many countries in the region. Meanwhile, foreign aid was dwindling, because the crisis was happening in countries that provided aid. As their economies contracted, aid would fall in volume and as a share of GDP, said Ezekwesili.The World Bank/IMF report estimates an additional 55 to 90 million people will be trapped in extreme poverty in developing countries in 2009. -Business Report