World crisis hits Africa

South Africa’s growing trade
links to the rest of the
continent are likely to be affected
as the global financial crisis starts
filtering down to low-income
countries.
Sub-Saharan Africa is
singled out as being particularly
vulnerable in a new International
Monetary Fund (IMF) study:
"The Impact of the Financial
Crisis on Low-Income
Countries.”
"After hitting first the
advanced economies and then
the emerging economies, a third
wave from the global financial
crisis is now hitting the world's
poorest and most vulnerable
countries," said IMF managing
director Dominique Strauss-Kahn
at the launch of the study.
The IMF forecasts that lowincome
country growth in 2009 is
projected at just over 4% – more
than 2% lower than expected a
year ago – with risks heavily on
the downside.
This means that many of the
world's poorest countries will at
best see incomes stagnate this
year, and possibly even contract.
According to the study, a one
per cent slowdown in the rest of
the world has led to an estimated
half a percent slowdown in sub-
Saharan countries.
Strauss-Kahn warned that
lower growth could have serious
implications for poverty and
potentially also for political
stability.
Low-income African countries
hardest hit by the world crisis
include Angola, Chad, Republic
of Congo, Nigeria, Burundi,
Central African Republic, Côte
d'Ivoire, Ghana, Lesotho
and Zambia.