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Africa must rethink economics: Zuma

Johannesburg - Africa must shape its future and construct a new economic paradigm, President Jacob Zuma said on Friday.

He was addressing a meeting of African heads of agencies and technical experts at the presidential guesthouse in Pretoria.

"For almost two centuries, during both colonial and post-colonial periods, Africa's development has been dominated by extractive industries specialising in taking our minerals and commodities to foreign markets," he said.

Zuma said the continent had to use its comparative advantages - its people and natural resources - to construct an economic landscape that would be better for all Africans.

Development in Africa was dependent on a few critical policies, including the development of human resources and investment in education, as well as drawing millions of people into work that gave them dignity, incomes and livelihoods.

Zuma said there was also a need to develop Africa's infrastructure so that it supported economic and human development.

Regional integration, regional trade and closer cooperation has to be fostered and sound governance, stable governments, capable administrations and development-orientated public services need to be built.

"This is the agenda on which the African Union was formed and it is the agenda that we continue to champion.

"This is the agenda for which each individual country, our regional economic communities, various structures of the AU and Nepad are mobilising for," he said.

Zuma added that it was necessary to look more broadly at regional integration and more specifically infrastructure development in Africa.

"Infrastructure is critical to regional economic integration. Infrastructure means the arteries along which people, goods, services and ideas flow amongst our countries."

Africa - through these arteries - had to fix anomalies in its economic development.

"A critical task in doing that is to raise our level of intra-African trade substantially."

Only 7% of the continent's trade was with other countries on the continent.

On the other hand, in Asia almost 60% of an individual country's trade was with its neighbours.

 
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