The African Development Bank revised down its forecast for economic growth on the continent this month as governments brace for a slowdown in donor aid, exports and remittances from Africans living in wealthier countries.
The rapid effect on Africa of what started as a U.S. banking crisis proves national economies are inter-linked as never before, said delegates at a meeting of African finance ministers and central bank heads in Tunis.
But they accused the wealthy West of failing to consult poor nations when trying to resolve the crisis and develop new institutions to better regulate financial markets.
Jean Ping, head of the African Union’s executive Commission, said Africa was not really invited to the G20 summit in Washington on November 15, except for South Africa which will attend as an emerging market country similar to Brazil or China.
“Africa … was not associated even slightly with the preparation when it’s a question of deciding the future of the world to which this continent belongs, in fact and by right,” said Ping.
He appealed to organisers of the G20 meeting to think of Africa’s right to be an active player in the process and “not to suffer, as always, the consequences of other people’s mistakes”.
Delegates in Tunis said Africa needed a global financial regime more inclusive of the world’s emerging economies.
Rich countries have pushed Africa to integrate further into global markets in recent decades to ease access to capital and boost investment and wealth creation.
But African officials said they are still largely excluded from major decisions affecting the world economy.
“Uganda is a rich country and well governed for the last 15 years, so why should its voice not be heard?” Ugandan Central Bank Governor Emmanuel Tumusiime Mutebile told Reuters. “The G20 represents part of the old architecture which I hope will end next weekend.”
French cooperation minister Alain Joyandet defended the G20 meeting organisers, saying it was arranged among major powers and that South Africa was called on to represent Africa’s views.
“At a certain moment, certain people wanted to limit the number of organisations present, undoubtedly for more effectiveness,” he said.
Poorer African states that rely heavily on exports of cash crops and minerals are bracing for a repeat of past downturns when trade deficits ballooned as foreign demand fell.
“With a recession, most exports will fall, which will hit foreign exchange and growth,” said John Baffoe, a resource mobilization officer at the African Development Bank.
The poorest countries stand to lose as aid is cut and states struggling to repay heavy debts wonder whether donors will meet their debt relief commitments, he said.