Commodity Prices Threaten Africa's Recovery |
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May 9, 2011
The head of the African Development Bank has said that rising oil and food prices are combining to create a “Molotov cocktail” for Africa as the continent attempts to push ahead with its recovery from the economic crisis.
The head of the African Development Bank has said that rising oil and food prices are combining to create a "Molotov cocktail" for Africa as the continent attempts to push ahead with its recovery from the economic crisis.
Donald Kaberuka, AfDB president, told the Financial Times that the rising costs were particularly affecting the continent's urban poor at a time when governments have fewer resources to counter the problem than during the previous food crisis of 2007-08.
"It's a delicate period," Mr Kaberuka said. "The previous decade of economic reforms had created a cushion of sound public finances ... so we were able to respond to the crisis ... Now the crisis finds lower reserves ... and therefore the ability of the governments to respond across the board is limited."
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