- In a bid to overcome current financial crunch in United States of America, which is likely to affect Africa's economic growth, Ugandan finance minister Ezra Suruma has suggested that African nations shift attention to Asian markets.
Although Dr Suruma was not sure how crisis would affect Uganda in particular, he was convinced that country's export products would somehow be affected as global economies slow down.
Developed countries, with US as epicenter, have experienced "an economic meltdown" that has sent shares with stock tumbling globally.
Currently, many African exports to US and European Union enjoy preferential treatment such as zero tariff and no quota restrictions.
"We hope our brothers, Chinese will not be affected so that they become alternative export destinations," Dr Suruma said of emerging super power.
He was opening 24th annual meeting of Board of Governors of Preferential Trade Area (PTA) Bank in Munyonyo yesterday.
Delegates from 18 member countries are attending conference. They include Uganda, Burundi, Comoros, Djibouti, Egypt and Eritrea. Others are Ethiopia, Kenya, Malawi, Mauritius, Rwanda and Seychelles. The rest are Somalia, Sudan, Tanzania, Chad, Zambia and Zimbabwe. The African Development Bank is a member in its capacity as a financial institution.
Dr Suruma said because of ensuing economic crisis, role of governments in financial markets would be reviewed.
"We should brace ourselves for a new world order. We don\'t want this kind of thing to happen again. Effective regulation is something you have to look to seriously," he told delegates responsible for fiscal policy in trade.
"Assumption that you don't have to control free markets has to be reviewed. Free markets must also be regulated in a way that doesn't strangle them," he recommended.
Statistics showed Africa's export to US hit 67.4billion US dollars last year.
Africa should explore new markets for its products, such as India, China and other Asian markets, Suruma proposed to meeting.
Chairman of board of directors of PTA Bank, Mohit Dhoorundhur, noted that size, speed and unpredictability of turmoil in world economic system are greater than ever before.
Dr Mohit said argument that Africa financial markets lacked depth and width of the West to be affected by financial turmoil was not tenable.
He warned that taking late precautionary measures would be costly.
"Challenge for whole African continent is to recognise need for change and be determined to undertake rapid reforms, while crisis is still at a distance," Dr Mohit said.
Governor of Bank of Uganda, Tumusiime Mutebile, said last week that while US financial crisis may not deal an immediate blow to Uganda's economy in short term, it will affect investment and external assistance for country in the long run.
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