South Africa

CAPE TOWN - At the inaugural meeting of the African Committee of 10 (C10), South Africa's Finance Minister, Trevor Manuel, calls for "equity and change" in an environment where wealthy countries have found ways to "dig themselves out" of economic recession, while African nations "remain trapped in a cycle of poverty". The list of concerns proves lengthy, as the effects of the global downturn can be measured in almost all of the economies represented at the meeting, attended by African Finance Ministers and Central Bank Governors. Manuel states that many countries are witnessing the drying up of remittance flows, which had, over the past number of years, been a reliable source of finance, which offsets impacted the skills drain. He notes that the first wave of unemployment is evident as many foreign direct investors scale back or shut down their operations. Increasingly, African states are encountering significant fiscal pressures as revenue sources dry up, as expenditures rise to meet the most elementary levels of service provision, and as retaining expenditure levels in the face of significantly reduced economic growth becomes a battle. Manuel says that the C10 must evaluate every aspect of what the member countries do, as well as each institution that takes decisions and affects African countries, and battle for a fairer, more equitable world, and an "opportunity to deliver to our citizens that which they deserve". The meeting agrees to establishment a committee to develop an African response to the global financial crisis and issues on the G20 agenda.

JOHANNESBURG - Trade union organisation, the Congress of South African Trade Unions (Cosatu) denounces the Congress of the People (Cope) for what Cosatu believes to be ambiguity over South Africa's economic empowerment and affirmative action policies. Cosatu spokesperson Patrick Craven says that the breakaway party, Cope, has "shown its true colours" by calling for affirmative action and employment equity policies to be reviewed, on the basis that they "discriminate against whites". Craven argues that it would be wrong to drop race as a criterion in affirmative action policies. Cosatu accuses Cope of pandering to the "worst prejudices of conservative whites" in implying that equity and empowerment could be achieved without racial redress.

CAPE TOWN - Official opposition Democratic Alliance (DA) leader Helen Zille says that the African National Congress's (ANC) 2009 election manifesto - described by some commentators as "pro-poor" and "pro-worker" - is in fact pro-poverty and pro-unemployment. The reason for this is that the manifesto is underpinned by the ANC's vision of a closed, crony society. Zille says that the leading party's manifesto promises to concentrate more power in the hands of a so-called "developmental state". Under the ANC, she says, the state itself becomes the enemy of opportunity. The DA emphasises that if the ANC was serious about making the state functional, it would abandon its policy of cadre deployment and make appointment to public service dependent on "what you know," not "who you know". The DA's manifesto, on the other hand, the opportunity creation as the focus of all its policies. The party believes that the only way to eradicate poverty is to expand opportunity through sustained job-creating economic growth and a significantly improved education system.

Africa & the World

TUNIS - Rich nations must live up to their commitments to boost development in poor countries and guard against protectionism in dealing with the global financial crisis, says African Development Bank President Donald Kaberuka. Africa expects the developed world, where the current financial crisis originated, to do everything it can to stimulate world growth. This does not mean, however, that it should renege on its commitments to poor countries. Kaberuka emphasised that if Africa's voice is heard, the continent can look for solutions. Growth on the continent has been hard hit by a financial crisis that has pushed many developed economies into recession. Capital flows into Africa are drying up, while tight credit markets, and high lending rates, have put development projects at risk. South African Finance Minister Trevor Manuel said the Group of 8 (G8) rich nations were already far behind on aid commitments. Kaberuka says that Africa will push for a bigger role within the Group of 20 (G20) group of leading developed and emerging countries to ensure its case is not ignored. He adds that for Africa this is not a financial crisis, but a development crisis.

HARARE - The United Nations (UN) children's fund Unicef has set up a $5-million fund to provide salaries for workers in Zimbabwe's ailing health sector. Health workers in the southern African country - where many public hospitals have been forced to close due to a shortage of staff, drugs and equipment - have been refusing to turn up for work, demanding salaries in foreign currency. Unicef executive director Ann Veneman says that resources for health care workers have been provided so that they remain in their jobs. Payments will be made to workers through a trust fund, not the government. UN figures show that over 2 000 people have died from cholera. Veneman says that the epidemic is still not under control. She adds that the cholera outbreak is only the tip of the iceberg as the economy in Zimbabwe is crumbling, with the highest inflation rate in the world above 231-million per cent.