Not fully relying on external aid

The annual spring sessions of the World Bank and the IMF is the first world gathering on the global financial crisis since the G20 leaders pledged in early April in London to boost support for the World Bank, the IMF and other international organizations by US$1.1 trillion.

The Tanzanian minister said that G20 leaders should honor their pledge at their London summit. At the same time, he rebuked the statement that African countries rely too much on the external assistance from such international organizations as the World Bank and the IMF.

"It's not true that we are raising our hands, and it's not true that we are bending our arms to them," he said.

"For Tanzania, we are talking as partners," he said, referring to his meeting with the IMF chief and adding that he, on behalf of the Tanzanian government, thanked the World Bank, the IMF and G20, which groups 20 largest economies in the world, for what they are going to do in assisting his and other African countries.

The IMF said that the abrupt slowdown puts at risk earlier hard-won gains and progress against poverty in Africa. While the appropriate policy response depends on country-specific circumstances, the priority for all sub-Saharan countries must be to contain the adverse impact of the crisis, which has resulted in slumping trade and commodity prices.

Financing is likely to remain strained because of declining capital inflows. Generally tighter global funding conditions are expected to have noticeable effects on middle-income countries, particularly South Africa and the frontier markets of Ghana, Kenya, Nigeria, and Tanzania, the report said.

The finance minister of Cote d'Ivoire said that the African countries lack the resources which the developed countries have for their ambitious stimulus package, and he called on the developed countries to support them in their efforts to reduce the weight of burn of foreign debts.

In order to stimulate the economy, "we have signed mining contracts with different companies," the Tanzanian finance minister said, citing the contracts his government signed with two companies from Canada and one from Australia.

"We're continuing negotiations for that, so the people of Tanzania can benefit from our natural resources," he added.

"Steps have been taken to boost the performance of non-traditional exports on the international market as a way of raising money for the country," the minister said.

'We’re not the only one depending on foreign aid'

For his part, Musokotwane also appealed for increased allocation of financial resources to support critical social expenditure and long-term investment necessary for economic diversification.

Meanwhile, the minister acknowledged the importance of the external financial assistance. But he also denied that African countries are the only ones that rely on outside financing amid the crisis.

"It's not (just) us depending on external financing," Musokotwane argued when an African reporter challenged him on the assistance issue.

"Rich countries, like the United States, also ask for help from the outside world, (for example,) they borrow money from China, Saudi (Arabia) and other countries," he noted.

(Xinhua News Agency April 26, 2009)