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Farewell to wars, Africa gears up for revival
(Xinhua)
Updated: 2005-12-10 13:22
MONEY TALKS, ECONOMY RULES
Africa's economy has been for years marked by subsistence- farming, monotony
in products, and high cost to do business because of instability and corruption
and the smallness of markets. But the past decade has seen efforts from both
outside and within to push for reform, and these efforts have begun to edge the
continent's economy towards mend, despite critical opinions that more should be
done to fight rampant poverty.
Average growth rates of 6 percent for several countries suggested efforts to
create the right environment for business and economic growth were paying
dividends, said Robert Bunyi, chief economist Africa at Standard Bank South
Africa.
Help is also coming from the outside. In an effort to bolster struggling
nations, Group of Eight (G8) countries have agreed earlier this year to cancel
the 40 billion US dollars debt that 18 least-developed countries owe to the
World Bank, International Monetary Fund (IMF) and African Development Bank.
Among the beneficiaries, 14 are in Africa.
Debt cancellation and increased aid pledged by the G8 wealthiest nations
means African countries such as Tanzania, Zambia and Ghana will have more to
spend on infrastructure, telecommunications, and technology -- further powering
economic growth, Bunyi said in an interview.
"Africa overall is making progress. The economies are growing and will
benefit more from the G8 package of debt relief and more aid. There are those
who say growth has not started to reduce poverty, but that will follow," Bunyi
said.
Bunyi cited Ghana, Mozambique and continental powerhouse South Africa, where
reforms were driving economic growth; Zambia, where high copper prices boosted
income; and oil-rich nations such as Nigeria, Angola and Chad, where ballooning
oil revenues are being invested in economic expansion or tackling debt problems.
As worldwide appetite for oil looms large, Africa, with its abundant oil
reserve, is assuming an increasingly important role on global oil map,
attracting more international investors to the region.
Some poor countries in Africa are also gaining billions of dollars from
tourism, the world's largest industry.
"Of the 49 least developed countries, 46 of them now have tourism as the
largest foreign exchange earner," said Louis D' Amore, president and founder of
the Vermont-based International Institute for Peace Through Tourism.
Last year Kenya, with one of Africa's most developed tourism industries,
hosted about 600,000 tourists and pocketed 577 million dollars or about 12
percent of its GDP. In the coming year, Kenya tourism ministry officials said
the country expects to attract 1 million to 1.6 million tourists.
According to Akaki Ayumu Jovino, Uganda's minister of tourism and
antiquities, tourism means jobs, poverty reduction and a better life for all the
citizens. His country recently launched a million-dollar tourism ad campaign.
Although a pittance compared to the budgets of major European destinations,
Jovino said the media campaigns would help.
"The challenge for Africa is not to sit back and lament," Jovino said. "We
wanted to give a new visibility to tourism in Africa and we are succeeding."
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