Tuesday, September 20, 2011
IMF cuts Africa's growth projections
The slow down in the US and Europe may be responsible for a slower economic growth for Sub- saharan Africa.
Some African countries are already reeling from the effects of these, that are visible through weaker currencies and reduced investor participation.
In 2008, as the economic crisis sunk several economies, Kenya was one of the economies that remained resilient, hinging its survival on thin intergration levels with the developed world.
But that was then, the second phase of may not leave Africa unscathed. the IMF has cut down its growth projection of Africa to 5.2% from 5.5% projected in April.
so what are the implications of this?
With its track record and strong critics about the IMF's role in Africa's development,Some may dismiss this - but unfortunately investors and the world's super powers who dictate the global economy listen to these financial institutions. If the growth rate is cut, investors read this as a signal to reduced returns.
It is true, that the world is a global village, just ask an apple farmer who now sells one apple at 30 shillings, up from 20 shillings last week.His profit is not 10 shillings per fruit. Ask him why.