The United Nations (UN) and the African Union (AU) have warned of the risk of another financial crisis just as they called for transformative policies as panacea to the current economic headwinds in Africa.

The UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA), Mr Carlos Lopes, said this in Addis Ababa on Monday.

Lopes spoke at the conference of African Ministers of Finance and Economic Planning taking place in Addis Ababa.

He said the reason for the crisis could be because African current growth had not generated sufficient jobs, and has not been inclusive enough to significantly curb poverty.

He said in 2016, with a barrel price of 30.8 dollars, Africa was going to earn 47.1 billion dollars less in trade this year compared to 2015.

He said the difference was around eight per cent of the total value of Africa’s exports in 2014.

He added that Africa’s total foreign debt has been higher than 30 per cent of GDP since 2010 and had risen to 37.1 per cent by 2015.

Also, the Chairperson of the AU, Mrs Nkosazana Dlamini-Zuma, urged African finance ministers to support private sector growth, including facilitating entrance into new sectors such as the green and blue economies, as critical part of the industrial policies.

“We must continue to push for integration. The reality is that the cost of non-integration is growing.”

Also, Vice President of the Republic of Namibia, Mr Hickey Iyambo, said to achieve Sustainability Development Goals (SDGS) in Africa, annual capital investments of 55 billion dollars would be needed until 2030.

“Ninety three billion dollars is needed for infrastructure until 2020, 26 billion dollars for universal education by 2020, and 31.5 billion dollars minimum for healthcare.

“Recovering the 1 trillion dollars illicit financial outflow out of Africa over the last 50 years as reported by the Thabo Mbeki's High Level Panel Report could assist with the financing of both agenda 2063 and the SDGS.

“The internal revenue from the continent’s natural capital are viable sources of income which should be harnessed.” (NAN)

•Photo shows ECA Executive Secretary Carlos Lopes.

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