Financial crisis: the cost to Africa

This is going to be significant in the sense that we’re going to be seeing a lot of money that should be going towards development being used to clean up the financial effect and this will effect investment and priorities over the next couple years. (What sectors and in what countries are you most worried about?) Africa.

Another analyst from Kenya is confident Washington and the E.U. will settle this crisis but that won’t keep countries like Kenya from catching the financial flack: some of these African countries require that the U.S. be engaged in their problems. Mostly African countries fear cuts in aid from the U.S. Uganda, for example, relies on foreign aid for 70% of its budget.

This businessman who helps invest vegetable growing business in Kenya says the financial crisis in the U.S. is affecting this business. He says that even though people need to eat, people are also always looking for deals. So the economic situation is affecting our business.

The CEO of a Kenyan business expects credit will tighten in the future but she wants to make sure the Kenyan government learns from the mistakes of the U.S. with this financial crisis.