SADC should get commodity wise: Manuel

AFRICAN countries should take advantage of the current commodity super-cycle and boom phase because it will not last forever, says South African Finance Minister Trevor Manuel.

Manuel was the guest of honour at an event organised by the University of Namibia Alumni Association in Windhoek on Thursday night. He said resource-rich Africa had a real chance to make a difference and turn the tide on poverty during this period by avoiding errors made in the past.”If we respect the truth, then we need to admit that commodity phases have not been managed well in the past, and we are at risk of making the same mistakes again.”The suggestion that commodity price upswings might be a curse and not a blessing is an uncomfortable reminder of our responsibility now to act wisely and prudently in the interests of future growth and not just present consumption,” he warned.The main drivers of this commodity boom – which has now lasted seven years – are the growing Chinese and Indian economies, demand for uranium, diamonds, platinum, gold and oil.The spot price for uranium last week hit a record US$136 (N$952) per pound compared to (US$7) N$49 per pound in the year 2000, while oil is nearing highs of US$85 (N$595) per barrel, and gold is at US$735,70 per ounce.Manuel, who was speaking on SADC economic integration, said it would be unfortunate if developing countries were caught unawares when the slump did eventually hit the world, adding that this was the time for poor countries to transform into greater economies.”If our analysis is correct, then the slump will come and it will bring with it a significant decline in commodity prices.This could potentially spell disaster.”Manuel said globalisation was a fact of life and that it was up to the region to develop strategies that suited individual countries.”As individual countries we need the world more than the world needs us.The realisation of this forces us into regional economic communities and agreements and all types of international arrangements.”We have to be able to connect the dots between our domestic agendas, the regional integration programme and events unfolding in China, Europe, the Americas and India.”SADC is aiming for a customs union to be preceded by a free trade area (FTA) by next year, while the African Union is also pushing for an FTA by 2010.SADC consists of South Africa, Mauritius, Botswana, Namibia, Zambia, Zimbabwe, Angola, Tanzania, Malawi, Lesotho Swaziland, Mozambique, Seychelles and Madagascar.Namibia is a member of SADC, AU and the Southern African Customs Union with South Africa, Botswana, Swaziland and Lesotho.The South African Minister said it was vital for good governance and macroeconomic and political stability to exist in SADC for economic integration to succeed.He called on the region to improve on its infrastructure and skills base, establish industries that create employment and raise shared environmental concerns to a higher level.The gala dinner hosted for Manuel was attended by prominent Namibians including Government ministers, corporate and business personalities and academics.He said resource-rich Africa had a real chance to make a difference and turn the tide on poverty during this period by avoiding errors made in the past.”If we respect the truth, then we need to admit that commodity phases have not been managed well in the past, and we are at risk of making the same mistakes again.”The suggestion that commodity price upswings might be a curse and not a blessing is an uncomfortable reminder of our responsibility now to act wisely and prudently in the interests of future growth and not just present consumption,” he warned.The main drivers of this commodity boom – which has now lasted seven years – are the growing Chinese and Indian economies, demand for uranium, diamonds, platinum, gold and oil.The spot price for uranium last week hit a record US$136 (N$952) per pound compared to (US$7) N$49 per pound in the year 2000, while oil is nearing highs of US$85 (N$595) per barrel, and gold is at US$735,70 per ounce.Manuel, who was speaking on SADC economic integration, said it would be unfortunate if developing countries were caught unawares when the slump did eventually hit the world, adding that this was the time for poor countries to transform into greater economies.”If our analysis is correct, then the slump will come and it will bring with it a significant decline in commodity prices.This could potentially spell disaster.”Manuel said globalisation was a fact of life and that it was up to the region to develop strategies that suited individual countries.”As individual countries we need the world more than the world needs us.The realisation of this forces us into regional economic communities and agreements and all types of international arrangements.”We have to be able to connect the dots between our domestic agendas, the regional integration programme and events unfolding in China, Europe, the Americas and India.”SADC is aiming for a customs union to be preceded by a free trade area (FTA) by next year, while the African Union is also pushing for an FTA by 2010.SADC consists of South Africa, Mauritius, Botswana, Namibia, Zambia, Zimbabwe, Angola, Tanzania, Malawi, Lesotho Swaziland, Mozambique, Seychelles and Madagascar.Namibia is a member of SADC, AU and the Southern African Customs Union with South Africa, Botswana, Swaziland and Lesotho.The South African Minister said it was vital for good governance and macroeconomic and political stability to exist in SADC for economic integration to succeed.He called on the region to improve on its infrastructure and skills base, establish industries that create employment and raise shared environmental concerns to a higher level.The gala dinner hosted for Manuel was attended by prominent Namibians including Government ministers, corporate and business personalities and academics.