Sleeping Africa awakes

By Staff Writer

The World Economic Forum on Africa has is being held at the Cape Town International Convention Centre from June 10th to 12th 2009. The Sessions are a global talk shop designed to plot the way forward for the African economies. The Forum is co-chaired by the Industrial and Commercial Bank of China (ICBC), the World Bank and the UAE's Dubai Group. With a global forum like this the major stakeholders are apparent. Kofi Annan was there co-chairing for the World Economic Forum itself. The conference posited that in the global downturn Africa was well placed to thrive. There were a few reasons for this.

 

  • Partial decoupling
  • In South Africa the NCA
  • Africa still growing

 

Jiang Jianqing Chairman of the board of the ICBC explained in his opening remarks that his bank has more than 60 projects in Africa and that the money is available. He dismissed notions of neo-colonialism saying that China and Africa had a shared history of being colonised and that as over the last thirty years China the sleeping dragon has stirred and become strong again, so Africa over the next 30 years will awake and also become strong again. This sentiment was continued at the forum with the idea that Africa will awake and become the engine of growth for the world as it pulls itself out of the derived financial crisis.

The financial crisis was in a large part caused by risk being diversified through rather than across asset classes. In other words bundling homeloans together was an inherently risky practise, and it doesn't matter if it was five different types of eggs if they were all in the same basket. With risk allegedly diversified risky lending practises were rife. In South Africa the National Credit Act was introduced to put the brakes on risky lending, and has contributed to us being in less of a risky position come credit crunch time. Africa as a whole was less exposed to derivative financial products and as such is now in a position to bounce back and lead the world's economic recovery.

Recent Articles

Featured Register your customary marriage or lose the right to inherit estate

December is that time of the year when we will see at least one suitor sending his uncles to negotiate the price of his future wife. Lobola, as the bride price is known, has always been an important element of the African marriage.

Read more

Changing from one medical scheme to another - effortlessly

It is coming up to the end of the year and you might be looking to change medical schemes, or options within a scheme in preparation for the new year. While you don’t necessarily have to wait for year-end to do so, providers often recommend it.

Read more

Your guide to financially surviving Christmas

There are a few times each year where you need to dig deeper into your pocket and spend more money such as birthdays, anniversaries, and the Christmas period. Whether you celebrate this religious holiday or not, the festive period - depending on how you choose to spend it - means increased travelling, buying of gifts, entertaining, and eating out at restaurants.


Read more

Trump, Trump and a little bit of South Africa

What a November we had, with the rand staging one of its best months and closing below the R14.00 level. To be honest, this looked like quite a far-fetched possibility at one stage during the month. It seems that the tide has changed a little, even though it might be short lived since the US dollar bulls are not so sure of their case anymore.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free iCollege Scholarship

Price: R600
When: Until 16 May 2019
Where: Nationwide

Telkom December Big Deal

Price: R459 pm
When: Until 31 December
Where: Nationwide

Money Savvy Kids Giveaway

Price: R450
When: 8 December
Where: Johannesburg (Milpark)