Economy Global recession - The World Bank has warned rich countries against considering cuts to development assistance at a time of growing fears over a potential global recession. “The temptation is great when a crisis looms – as it does now – for rich countries to slash development assistance. This would be a grave mistake,” World Bank Vice President for Africa, Obiageli Ezekwesili, said. Speaking at the first-ever African Investment Summit, organized by the London Stock Exchange (LSE) and several companies, the World Bank official said cutting aid would be a grave mistake “not because Africa is desperate for aid, but because the global economy is desperate to see a high-performing Africa.'

An expansion in global prosperity and a resumption of global economic growth, she explained, really depends on Africa playing its role as a global growth pool and prospering as a robust market for global goods and services.

Earlier, Ezekwesili had said she hoped fears over a potential global recession would ease, triggering investments in Africa and soothing financial markets roiled by the euro zone debt and American budget crises.

Speaking to a group of 125 investors, estimated to have holdings of about US$ 120 billion at the LSE and with growing portfolios in Africa already, She spoke of the sheer abundance of investment opportunities in Africa, urging investors still hesitating to take a bet on the continent to do so without further delay.

“Today is the day African business has made. Tomorrow may be too late,” she said, citing the example of an unnamed European firm which turned down the offer to invest in Nigeria’s telecommunications sector.

The same Nigerian telecoms sector that seemed so unattractive to the European investor has within the decade exploded from 500,000 phone lines to 80 million phone subscribers, while Africa's phone density rose from 10 million lines to over 400 million.

She said the “exciting new Africa” is inviting investors to take a bet on is “at a time of unprecedented opportunities for transformation… standing on the cusp of a revolution similar to the ones that transformed China and India”.

“Africa is the now, no longer the future,” Ezekwesili said, urging any CEO who has not yet presented an Africa strategy to their Board of Directors to do so. “Any global player that continues to ignore Africa does so at their peril.”

The UK Secretary of State for International Development, Andrew Mitchell, who spoke at the same summit, reiterated his government’s support for Africa’s development.

Pana 11/10/2011