By Emma Kakololo
WINDHOEK
African countries should take advantage of the prevailing global boom for the commodity sector, because it will not last, South African Finance Minister Trevor Manuel has cautioned.
Manuel was addressing academics and dignitaries at a University of Namibia gala dinner on Thursday last week.
He said the current commodity super-cycle and boom phase has lasted for some seven years, and it cannot be predicted when the trend would reverse.
“If we respect the truth, then we need to admit that commodity boom phases have not been managed well in the past, and we are at risk of making the same mistakes again,” he said.
Manuel warned that how countries respond to the boom phase would also impact the region.
Countries should act wisely and prudently in the interest of future growth and not just on present consumption, he said.
“The suggestion that commodity price upswing might be a curse and not a blessing is an uncomfortable reminder of our responsibility.”
Drivers of the upswing are growing economies such as China and India, and their demands for commodities such as gold, platinum, diamonds and oil are high, but to suggest that the good times are here to stay, he said, would be a na???_?_’???_?’???_?