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Submitted by Milimo on
It is important to understand what triggered this financial crisis. It was primarily spured by the U.S. housing crisis - increasing defaults on subprime loans led to huge losses for financial instutions that had packaged these loans into secondary securities and marketed them off to third parties. Since many African countries, including Rwanda, Zambia etc, do not not generally engage in these kinds of reckless innovations, they have not been directly hit by the crisis. However, the financial crisis in the United States has led to a credit freeze. Banks are reluctant to fund just about anything including projects that benefit developing countries. In this regard, African countries will be affected by the financial crisis. With globalization, there is no doubt that the US Financial crisis' impact will be far reaching both from a geographical and fiscal perspective.