Africa Youth Summit 2009: Don’t forget Africa

Friday, 5 June 2009 | posted by Matt_BC
Africa Youth Summit 2009, General

Don’t forget Africa. That seems to be the message emerging from the African Youth Summit against the backdrop of the Global Financial Crisis. Here in South Africa there are signs of hope though as it goes through its first economic downturn since out the outbreak of democracy.

Alongside the opening of the forum, South Africa’s President Jacob Zuma delivered his State of the Nation speech on Tuesday calling for “all hands on deck” during the crisis. In a workmanlike manner compared to great orators like Obama, Zuma outlined his vision to create 500,000 new jobs only two days after the country officially fell into a recession after two quarters of negative growth. The everyday language didn’t cloud the vision of Zuma’s speech though who clearly believes that South Africa’s hosting of the 2010 FIFA World Cup can help create an “artificial buffer” against the downturn through which these jobs and a spirit of hope can emerge. Who would have thought sport could be so important at times of economic peril?

The impacts of the financial crisis in Africa are going to be far more reaching than that though. With the Millennium Development Goals fading into history without much success and millions more plunged into absolute poverty as a result of the economic crisis the worse is yet to come. Africa will bear the brunt of the fallout of the crisis as a continent far removed from over-confidence on Wall Street and inflated housing markets across America; a country many Africans can only dream of visiting. Access to credit markets will shrink for countries across the continent making it harder for African nations to emerge from the crisis on the back of additional spending like we are seeing across the developed world. Some of that spending beggars belief in its size – the first bailout in the United States was over $700 billion which in isolation would be the 21st largest economy. On the trade front as well seventeen of the G20 countries have already increased trade barrier and forms of protectionism since November 2008 despite pledges to not – a forum Africa has one voice in through South Africa.

Government is not the sole answer to the financial crisis. Entrepreneurism has a role just as governments do in addressing social problems, and human capital investment has become as important as ever. Communicating the necessity of our work during a crisis can be difficult but we all need to realise that when times are tough we all have a responsibility for working hard and investing in the future. In doing so let’s not forget Africa. 

- Thom Woodroofe