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EXECUTIVE BUREAU – NAIROBI - Session of 7-8 May 2009 - page 5 / 22





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From the end of July 2008 to the end of March 2009, apart from the stock market of Tunis which only lost 1.5% of the value of its assets, in seven other countries, the fall ranged from 24.8% to 62.5% including Morocco (24.8%), South Africa (25%), Ivory Coast (38.3%), Mauritius (39%), Kenya (44.5%), Egypt (55%), and Nigeria (62.5%). For some African markets such as Ivory Coast, Mauritius, Kenya, Egypt or Nigeria, the effect has been more significant than the effect noticed in the markets of some developed countries such as USA (31.71%), France (35.3%) and Japan (35.5%). Thus, African investors as a whole, especially Egyptian or Nigerian investors lost on average over a period of six months more than half of the asset they invested at the end of July 2008. This depreciation of wealth is more considerable than the losses incurred by the American, French or Japanese investors.

Furthermore, the falling trends should also be noticed in the international flows of private and public capitals because of the fall in foreign direct investments (FDIs), portfolio capital flows and official development assistance (ODA).

Money market – In most African countries, the crisis is followed by a depreciation of exchange rates, especially against the US dollar or euro. To give a few examples, from the end of July 2008 to the end of March 2009, the currencies of the following countries depreciated: Morocco (10. 9%), Tanzania (11. 8%), countries in the CFA zone (12. 6%), Tunisia (14. 2%), Botswana (16. 2%), Algeria (16. 3%), Kenya (17. 2%), Ghana (18. 1%), Namibia (20. 6%), Nigeria (21. 2%), Uganda (22. 1%), Zambia (36. 2%), DRC (38. 7%), Sierra Leone, South Africa (21. 8%), Seychelles (50.9%). However, during the same period, the euro depreciated by 10% only, while the yen appreciated by 10%. In general, the depreciation of most of these currencies was said to be due to the impact of the financial crisis on the prices of raw materials and foreign exchange reserves.

Labour market – The high tensions on labour markets due to job losses will strongly affect African migrant workers. In the host countries, most of them are the first workers losing their jobs. In addition, those among them who had seasonal

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