Africa finally on the road to recovery

African countries were largely innocent victims of the global financial crisis.

It struck Africa through many different channels.

We saw trade plummet, capital flows dry up, remittances slow, and banks run into difficulties.

The result was a disappointing year for the African economy, marking the end of the longest and broadest expansion in modern history.

In 2009, growth in sub-Saharan Africa was close to 2 per cent, while it had been humming along at 5-7 per cent beforehand.

Average per capita incomes fell marginally in 2009, the first decline in nearly two decades.

Human suffering

Behind this lies an enormity of human suffering.

Jobs were lost in both formal and informal sectors.

Progress in reducing poverty was set back.

Nutrition suffered. In other parts of the world, you might lose your job, or maybe your house, in this kind of crisis.

In Africa, you could very well lose your life, or the life of your child.

The tide seems to have turned. In line with the rest of the world, an African recovery began in the latter half of 2009.

All across the continent, we can see signs of life, with rebounds in trade, export earnings, bank credit, and commercial activity.

In 2010, the IMF expects growth of around 4.5 per cent.