Continent Needs to Cushion Its People Against Economic Crisis

Cape Town — Africa needs to cushion its people against the effects of the global financial crisis or face increased starvation and poverty, says President Jacob Zuma.

"For most African countries, that are still highly indebted and dependent on aid for their revenues, the continuation of the current crisis will mean increased starvation, poverty and child mortality," said the President.

He was speaking at the opening of the 19th World Economic Forum on Wednesday.

"We must cushion our people against the impact of the crisis as best we can," said the President, adding that the continent had its own mechanisms to respond to the crisis just as other regions do.

He said no region would respond in the same way as others and that he viewed the economic downturn as both a challenge and opportunity for the continent and the developing world in general.

Nations need to respond in the spirit of planning for a recovery, said the President.

He said that one of the critical lessons learnt as a result of the global meltdown was the need for a transformed global financial system.

"Financial systems cannot be self-regulatory and governance of financial institutions must be global in nature," said the president.

The core elements of South Africa's response to the crisis is the Expanded Public Works Programme that is earmarked to provide job opportunities to around four million people over the next five years; increasing social grants and implementing the rural development strategy.

The president also welcomed delegates to South Africa, saying that over the course of the three-day meeting, the African continent would benefit from the knowledge of the delegates.