African countries advised to diversify economies

Special Report:Global Financial Crisis

LUSAKA, Feb. 9 (Chinese media) -- A senior Zambian government official has advised

African countries to diversify their economies in view of the global crisis

which has resulted in falling commodity prices.

Zambian Vice President George Kunda told a meeting of ministers of Eastern

and Southern African countries that it was important to diversify economies in

order to cushion the problems of single commodity dependence.

"The current global crisis is affecting us more than we had anticipated.

Most of our countries are dependent of single or few commodities and the price

of these commodities have fallen drastically over the past six months," he said.

He said most commodities dependent on by most African countries such as

copper, oil, platinum coal and iron ore were now fetching less than six months

ago.

"Businesses are closing down and our people are losing jobs and their

income is being eroded. Because of lower prices, businesses are holding back new

investments to safeguard investors' value," he added.

He said African countries must realize that open market policies were no

longer optimal.

The ministers are meeting to look at the progress made in the Economic

Partnership Agreements (EPAs) currently going on between the African Caribbean

and Pacific (ACP) countries and the European Union (EU). Eastern and Southern

African countries are negotiating as one group.

Common Market for Eastern and Southern Africa (COMESA) secretary general

Sindiso Ngwenya said negotiations at a technical level "have so far been frozen"

waiting for political guidance but expressed hope that a resolution would be

found.

The ministers are expected to provide guidance as to the process, content

and strategy to engage the EU.

The EPAs are expected to replace the existing Contonou Agreement that

exists between the EU and the ACP.