IMPACT OF THE FINANCIAL CRISIS IN AFRICA

1. Introduction Survey conducted among 22 Employers Organisations in Africa on the impact of the global financial and economic crisis

2. The Impact of the Financial Crisis on the Economy of your Country

The main reasons related to the negative impact Decrease in demand in most sectors Fall of the international commodity prices Negative impact on their currencies

3. Impact on Economic indicators   Increase (%) Decrease (%) No Change (%) Did not answer (%) Economic Growth 18 63 14 5 Investment 55 27 Employment Exports 9 68 Imports 41 Wages 36 23 FDI 59 Foreign Aid Exchange Rate of your currency 50

4. Expectations for 2009

5. Economic Sectors Affected

6. Impact on Enterprises Variable Increase (%) Decrease (%) No Change (%) Did not answer (%) Employment 71 24 5 Cost of Production 48 14 38 Profitability 66 10 Investment 61 Volume of Demand 81 Selling Prices 33 29 Access to Finance/Credit Business Confidence 57

7. Remittances

8. Impact on Stock Exchange

9. Impact on the Activities and Priorities of the Organisation 86% of Employers Organizations believe that the crisis will have an impact on their activities and priorities.

10. Government Measures to Deal with the Crisis Government in 17 countries have taken measures to deal with the crisis. 16 of the respondents have been consulted. These measures are: Setting up of a committee to monitor the impact of the crisis Stimulus packages Increase of public expenditure to support economic activity Improve Productivity Reduction of customs taxes

11. Proposed Solutions by Employment Organisations Survey respondents suggested the following additional measures that may be undertaken: Support Programs for Vulnerable Sectors (7) Support Domestic Production (7) Social Dialogue for Solutions (4) Training and Productivity Improvement Programmes (4) Support to SMEs (3) Setting up of a committee to monitor the impacts (3)