Africa will henceforth have a better representation and bargaining power at the World Bank Group. This follows the third seat it obtained in the World Bank Group Board, through the election of South Africa’s Dr. Renosi Mokate into the Bank’s 25 member Board. The election was one of the fallouts of the 2010 joint World Bank – IMF annual meeting which ended in Washington D.C. Sunday October 10. Analysts consider the election as a milestone in the Bank Group’s efforts over the past two years to boost representation of developing and transition countries. Reports say developing and transition country shares in the Bank have witnessed an increase of 4.6 per cent over the past two years and now stand at 47.2 per cent. According to World Bank Group President, Robert B. Zoellick, “the voices of developing countries are vital to delivering effective development and to reflecting the realities of today’s world”.
Global Economic Crisis
Coming on the heels of the global economic crisis which bucked down economic activity, causing so many companies to freeze jobs, the Washington confab gave Regions the opportunity to report on how their economies are fairing after the meltdown. For Africa, attention was focused on intra-African trade. In a seminar titled, “Can Africa Trade With Africa?,” World Bank Vice President for Africa, Obiageli Ezekwesili, invited policymakers and private sector representatives to offer ideas on how to accelerate intra-African trade and move economies beyond agriculture and natural resource extraction. “Today, there is strong consensus among African leaders that regional integration is indispensable to unlock economies of scale and sharpen competitiveness”, she said. This is in an effort to improve the no-so-vibrant intra-African trade which reports say remains among the lowest in the world. “Only about 10 per cent of African trade is within the continent, compared to about 40 per cent in North America and about 60 per cent in Western Europe”, Obiageli Ezekwesili said.
To better the situation which has failed to improve with the introduction of free trade areas, customs unions, and common markets within the Region, analysts advocated the implementation by governments of political commitments under existing regional trade agreements. At term, the Commissioner for Economic Affairs for the African Union, Maxwell Mkwezalamba, was urged to hold a summit with Heads of State this year to agree on a time-bound action plan to fulfill their regional integration agreements. Diversifying economies beyond natural resource extraction and agriculture as well as improving the investment climate and reducing the cost of doing business, were also on the menu. Quoting an online participant, Obiageli Ezekwesili said “Yes, Africa is a ‘can do’ place and there has been enormous progress within the past few years for effective business between African countries. It is true that most of this has been more with agricultural products, but more countries are building capacities and becoming more competitive and open to industrial trade no matter how slow! There is hope for a way forward, but we need more visionary leaders at all levels.”
