USA: Former Nigerian Finance Minister Ngozi Okonjo-Iweala says Africa's outlook has never been brighter

One of Africa's rising stars, former Nigerian Finance Minister, Ngozi Okonjo-Iweala is about to take up a top position at the World Bank. Speaking during an interview in Washington, she spoke of a bright future for Africa, citing fewer conflicts, more responsible leadership and improved economic management. Ngozi Okonjo-Iweala, recently appointed by World Bank chief Robert Zoellick as one of his deputies, believes Africa's economic fortunes have never looked brighter. With fewer conflicts, more responsible leadership, improved economic management and growth around seven to eight per cent, the region is on more stable footing than ever before, the former Nigerian finance minister told Reuters Television. Named by Forbes Magazine as one of the world's 100 most powerful women, Okonjo-Iweala was appointed by Zoellick in October as managing director overseeing Africa, South and Central Asia and the former Soviet states. As she prepares to assume her post as managing director at the World Bank next month, Okonjo-Iweala said the bank was key to explaining to the private sector how Africa was changing and providing support to companies looking to invest. "The issue is: How do you energize this growth? How do you keep our countries in Africa steadily growing at 7 to 8 per cent for the next two decades?" Okonjo-Iweala said in an interview, pointing to success in China and Malaysia. To Okonjo-Iweala the untold African story is that economic growth is not only happening in resource-rich countries. "Something is happening to the non-resource-rich sectors of the economy. Do you know that there is very strong growth in non-oil sector led by agriculture?," she added. "That is the kind of thing that excites me." As Africa's economies expand, constraints from the lack of roads, railways, ports and power become more binding. A handful of economic stars such as Nigeria and Kenya are looking to break their dependence on aid by going to international markets to raise funding for their vast infrastructure and development needs. Already, Ghana saw huge demand for its debt Eurobond in September, a 750 million U.S. dollar deal with maturity of 10 years. "We've just come out of an era of escaping from debt and I think everybody is wiser now" Okonjo-Iweala said, cautioning that governments would first have to earn the respect of the markets by showing they are responsible. As countries seek more investments, she said it was important they did not rebuild their debts, which were canceled by rich nations in 2005 and through a global program managed by the World Bank and the International Monetary Fund launched in 1996. The continent is still riddled with poverty and Okonjo-Iweala said it worried her that the divide between rich and poor would widen as countries prospered. To Okonjo-Iweala the untold African story is that economic growth is not only happening in resource-rich countries. "Something is happening to the non-resource-rich sectors of the economy. Do you know that there is very strong growth in non-oil sector led by agriculture?," she added. "That is the kind of thing that excites me."

ITN Source | November 7, 2007

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