European Debt Crisis: A Look at the Impact on Africa
Oct 8th, 2012 by Shahista Kassam
Will Africa be the land of opportunity during this World Crisis?
After reading Rachel Servoz and Emily Yu’s blogs it made me consider looking into the impact of the European Crisis on African counties as I come from Tanzania.
Europe has been a primary consumer of most of the commodities in Africa. The financial debt in Europe has therefore lead to volatility in prices of commodities in many of the African countries such as Kenya, Tanzania, and Uganda. This has affected trade and the demand of commodities in Africa such as oil and copper, the currency leading to higher inflation rates in African countries and the employment rates in Africa.
Yet, “According to World Bank and IMF, Africa has one of the best growth prospects over the coming decade. In 2011, developed countries recorded approximately 2% growth rates, while African nations recorded nearly 5.5% on average” (Maithya). This proves that many of the African countries will be countries of opportunity in the coming years as they learn to become sustainable without aid from the developed world. Ngozi Okonjo- Iweala, Nigeria’s Finance Mnister quotes “We have learnt how to manage our economies to produce sustained growth. What needs to be recognized when these decisions are made in Europe, is how they can make more use of the dynamism of the developing world” (Europe).
Works Cited:
Abdullahi, Shaflu. “African Economies and the Global Debt Crisis :: Holler Africa –Make Yourself Heard!” African Economies and the Global Debt Crisis :: Holler Africa – Make Yourself Heard! Holler Africa, 2005. Web. 07 Oct. 2012. <http://www.hollerafrica.com/showArticle.php?artId=508>.
“Europe Crisis ‘threatens Africa'” BBC News. BBC, 1 Dec. 2011. Web. 07 Oct. 2012. <http://www.bbc.co.uk/news/business-15968984>.
Maithya, Nicholas. “European Debt Crisis: A Look at the Impact on Africa.” ValueWalk.Weneca Media Group, 5 June 2012. Web. 07 Oct. 2012. <http://www.valuewalk.com/2012/06/european-debt-crisis-a-look-at-the-impact-on-africa/>.
Picture Reference:
“Europe and World Crisis By Alexei Talimonov | Politics Cartoon | TOONPOOL.”Europe and World Crisis By Alexei Talimonov | Politics Cartoon | TOONPOOL. Toonpool.com, 2012. Web. 07 Oct. 2012. <http://www.toonpool.com/cartoons/Europe%20and%20World%20Crisis_155770>.