Emerging economies in Africa are less affected by market volatility but even more by price rallies of commodities and agricultural goods
There is usually not much you can read about the effects of marekt volatility, currency volatilities and rapid changes in commodity prices in regard to African economies. But all of these volatile parameters affect the emerging African economies strongly. Rising copper prices for example and the overall rally of resources have a paradox effect on African economies: still widely unintegrated in the world financial system there is an inflationary effect on prices for food and goods on the ground. In the same time state income is increased by rising incomes from the export of resources. But much of that is needed to subsidise rising food prices. We need urgently the professional development of an African financial system to make investments work in this continent also for local investors.
This entry was posted by Birhanu on August 14, 2010 at 5:30 pm, and is filed under Emerging Economies. Follow any responses to this post through RSS 2.0.
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