THE Euro Zone countries are increasingly questioning the benefit of a single currency doubting whether it promotes regionally balanced development at the expense of existing developmental fundamentals.
The Brexit and Italy shocker continues to reverberate with political shifts challenging long held traditional way of economic and social life in Europe.
The Trump Effect seems more protectionist and inward US growth looking rather than with the rest of the world. In fact there are talks of raising duties on global imports and reconfiguration of trade relationships with China and Europe leading to declined North South relations.
For Africa this means not good news but also a need for positioning and reorientation by expanding trade on South South cooperation basis but also using domestic and regional resources and targeted international trade patterns to grow exports and investments. For Africa, there is need to agree on a political consensus of a growth points sector to sector basis and give room and resources to countries where they are economically and competitively advantaged to ensure specialised growth reliance on a sector or product through ensured grounding of regional value chains. The time for focusing on too many things which are similar and homogenous across Africa should stop.
Africa may face a boom bust cycle of capital flows in 20117 and hence a carefully managed exchange rate management system not just over reliance on a fixed system but a carefully crawled exchange rate system could be a future policy option with strong balance sheets of committed debt service reduction strategies with higher revenue mobilisation.
Africa should bite its rightful place in a global world and take advantage of the shifting patterns in the world and should become economically minded not just politically savvy. This is important especially now that international interests states are poised to rise in 2017 and inflationary pressures due to exchange rate depreciations are to happen affecting the pockets of a common African.
As one great statesman said, “We live in interesting times”. I am here to add, “We live in risky times so things look generally up in 2017 not done especially compared to year 2016”. It’s time to Transform Africa and the Time is Now! “Carpe Diem, D’accord”.
Mihe Gaomab II.
*The views expressed are personal and in line with the policy discourse of the Namibian Economic Society.
Confidente. Lifting the Lid. Copyright © 2015