African countries should use the global economic downturn as an opportunity to rapidly transform their economies through diversifying sources of growth, reforming policies and strengthening governance, says World Bank vice-president for Africa Obiageli Ezekwesili.

She adds that, although the global crisis is not a product of Africa, it has still been affected by reduced investment and a rapid decline in commodity prices.

Commodity-dependent countries have received the hardest blow from the economic crisis and, therefore, she suggests that African countries need to cushion themselves against future economic shocks by diversifying their economies.

However, transforming economies requires political will at the highest levels, account-ability for results by leaders and citizens and plans that are supported by the right policies.

“All too often, I hear leaders telling me that their countries would develop faster if they had more resources. I believe that resources without the right policies will not work. If the policies are right, the resources will normally follow,” she notes.

To be able to create an enabling environment for local and foreign investors, countries need to reform.

Once the crisis slows down, foreign investors are expected to return, but they will be cautious about which countries they choose for investment. Countries that kept to the reforms they initiated will be targeted first. Other countries that will also be of interest to investors will be those demonstrating a willingness to strengthen governance and embrace the rule of law.

Ezekwesili explains that it is important for countries to diversify in sources of growth for more sustainable development. Countries currently just focusing on one commodity to keep up their sustainable development would need to look into other sources of growth, for example, a country such as Zambia, which is mostly dependent on copper.

Agriculture is four times more effective in raising the income of the poor than growth from outside agriculture, according to the World Bank’s 2008 ‘World Development Report’.

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