The Committee of Ten (C10) encourages diversification to overcome economic vulnerability
Meeting in Washington DC, USA, on April 18, 2013, the Committee of Ten (C10), comprising of African Ministers of Finance and Central Bank Governors called for strong support for the African Development Fund (ADF) and argued for a true transformation of African economies.
The committee urged that the ADF “has played a major role in economic integration, infrastructure development and support to conflict-affected countries”. This view echoed remarks made by Liberian President Ellen Johnson Sirleaf at a meeting during the ADF first replenishment gathering that took place in Tunis, Tunisia in February 2013. “The African Development Bank has always been a first-rate financial institution. It is the best advocate for Africa in achieving the MDGs”, she said.
In addition, the C10 noted the robust economic performance that Africa has seen over the last decade. A total of six out of ten of the world’s fastest growing economies are in Africa and in 2012 the continent enjoyed a GDP growth of 6.6%.
However, the committee warned that the continued growth in Africa was at risk due to falling aid flows, a decline in export demand from the Euro area and fiscal uncertainty in the United States. It has therefore called for the need to diversify economies to overcome vulnerabilities in the current global economic climate. It also encouraged the continent to focus on structural transformation, as well as “increased mobilization of domestic revenues, improved public financial management, closing of the huge infrastructure gap, and developing non-traditional sources of finance and markets”.