Global economic challenges unprecedented: finance min.

The global economic challenges are unprecedented, Finance Minister Mohamed Maeet said Tuesday, citing the repercussion of the coronavirus pandemic and the sharp rise in inflation.

The challenges also include troubled supply chains, the increase of shipping costs, the increase in prices of goods and services, the Ukrainian crisis and the negative impact of climate change, he told a conference of African ministers of finance in Dakar, Senegal.

Maeet said that there should be a unified African strategy concerning the issues of finance and climate change – one that would contribute to empowering the continent to positively and resiliently deal with environmental and economic repercussions of climate change.

Maeet urged adopting new mechanisms, such as establishing hedge funds with the aim to protect African economies against global shocks and external fluctuations.

He stressed the importance of having effective international cooperation to facilitate reaching low-cost funding of the infrastructure and create job opportunities in Africa.

The minister also asserted the importance of accelerating the implementation of a continental free trade agreement to contribute to boosting the volume of African intra-trade, honing competitiveness of the African economies, attracting investments and removing any obstacles.

This would also help create a unified African market of goods and services, thus enhancing African contribution to international supply and production chains, Maeet added.

He reviewed state preparations to host the next climate summit, stressing keenness of the Egyptian Finance Ministry to organize a meeting of African ministers of finance and environment to probe demands of their countries.

 

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