A group of powerful multilateral financial institutions are joining forces to support Arab hopes for a better economic future, the US and French governments announced Thursday.
The World Bank, the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB) and the Islamic Development Bank (IDB) are among the institutions that have pledged to have an action plan outlined by the end of May.
Egypt and Tunisia are a primary focus of the plan, said the statement, issued following a closed-door meeting hosted by the World Bank. The World Banks private investering arm, International Finance Corporation (IFC), and AfDB could make over 4 billion US dollar available for Egypt and Tunisia in the next year.
Earlier this month, the World Bank said it is joining Middle East and North African governments and other international financing institutions to create an Arab Financing Fund for Infrastructure. The region needs investment of between 75 billion to 100 billion dollar a year to sustain growth rates and boost economic competitiveness, the Bank said.
The turmoil “has demonstrated that people want better public services and a cleaner urban environment and that means more efficient, better-designed infrastructure services”, said World Bank Vice President for the Middle East and North Africa Shamshad Akhtar.
North Africa To Drag Continent’s Growth Below 5 Percent
African Development Bank (AfDB) Vice President and Chief Economist Mthuli Ncube has said, that “North Africa will drag down growth in the continent this year to below 5 percent for the first time in more than 20 years after the revolution in Tunisia sparked unrest in the Arab world”.
While North Africa will show meager growth this year, the rest of Africa will push growth forward, Ncube said.
East Africa’s average growth rate is forecast at 6 percent, Southern Africa is expected to grow at 4,5 percent, while growth in West Africa, excluding Ivory Coast, is forecast at 5 percent. – We will see meager growth averaging 3 percent in North Africa. Overall African growth will be just below 5 percent, Ncube added.
Ncube, however, is bullish (optimistisk) about Africa. – What is happening in North Africa is necessary. People want growth and justice. The world should see this as an investment destination, he stressed.
Kilde:www.worldbank.org
