Europe Crisis Hurting African Remittances

“Europe Crisis Stifling Remittances, African Central Bank Says,” by Tal Barak Harif and Paul Richardson, for Bloomberg Businessweek:

 East Africans are sending less money back to their home countries as the crisis in the euro region crimps the outlook for the global economy, government officials from Burundi, Tanzania and Uganda said…

African economic growth slowed to 2.7 percent in 2011, from 5 percent in 2010, and the continent may face “serious” threats this year because of the situation in Europe, according to the Economic Commission for Africa. Growth excluding North Africa was 4.5 percent last year…

Economic growth in Africa also slowed last year after uprisings in Tunisia, Egypt and Libya, the Economic Commission said.

Biggest Partner

Europe is Africa’s biggest economic partner and any slowdown there may curb trade flows, remittances, investment, tourism and donor funding, the Commission said. Efforts to deflect some of the impact of the euro zone crisis by diverting exports to emerging economies are being stymied by slowing growth in economies including Brazil, China, India and Mexico, according to the report.

“Africa’s prospects for 2012 would seem encouraging, but given current global economic uncertainty, I would urge continuous vigilance as the signs are ominous and we may face serious threats,” Abdoulie Janneh, executive secretary of the Commission, said in the statement…

 

 

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