The current shift of financial power from multi-national organizations such as World Bank, I.F.C and others to Sovereign Wealth Funds presents developing nations such as Zimbabwe with a new source of foreign direct investment. A sovereign wealth fund (SWF) is a state-owned fund composed of financial assets such as stocks, bonds, property or other financial instruments. Sovereign wealth funds have gained world-wide exposure by investing in several Wall Street financial firms. These firms needed a cash infusion due to losses resulting from the credit crunch caused by the mortgage meltdown which started in the USA.
South Africa posted a budget deficit of 1.2 percent of gross domestic product in the fiscal year through March, higher than forecast, as the economy headed toward a possible recession.
Economic crisis to rock Africa for at least two years: Japan
Saturday, 21 March 2009
Japanese Foreign Minister Hirofumi Nakasone warned that the global economic crisis would affect Africa for at least two years, as he opened a development conference in Botswana on Saturday.
South African Monetary Policy Needs More ‘Vital’ Role
Friday, 13 March 2009
March 13 (Bloomberg) -- South Africa’s fiscal and monetary policies need to play a more “vital” role to help ease the impact of the global financial crisis, said Daniel Mminele, a member of the Reserve Bank’s Monetary Policy Committee.
March 13 (Bloomberg) -- Zimbabwe’s Finance Minister, Tendai Biti, said the country needs urgent financial help to revive the economy and prevent the collapse of a new power sharing government.
South Africa May Call Emergency MPC Meeting, Mboweni Tells CNBC
Saturday, 07 February 2009
South Africa’s Monetary Policy Committee may convene before its next scheduled meeting if data shows the economy is worsening more than expected, CNBC Africa said, citing an interview with central bank Governor Tito Mboweni said.
