LONDON: The worldwide economic crisis has stifled Africa s growth boom and the region faces further threats even as a recovery gets underway in other parts of the world, a top credit rating agency warned on Thursday.
Falling commodity prices, remittances, foreign direct investment, tourism and the freezing of global capital markets all combined to stifle the recent African boom, Standard & Poor s agency said in a statement.
The agency said sub-Saharan Africa faces further obstacles such as increased regulation of financial markets in reaction to a credit crunch and fears about the stability of African banks following a crisis in Nigeria.
Rich economies could also cut aid budgets because of rising debt and vital remittances from African immigrants in wealthier countries in Europe and North America could be reduced as unemployment there continues to rise, it added.
Ratings agencies monitor the financial stability of companies and states. -AFP
