Protectionist policies by the haves will deepen Africa's woes, South African President Jacob Zuma said on Wednesday, adding that the world's poorest continent had suffered for years from market barriers.

Addressing the opening of the World Economic Forum (WEF) on Africa in Cape Town, Zuma expressed concern over trade measures and huge bailout packages in developed countries.

African agriculture has suffered

"African agriculture has suffered for decades from the huge subsidies provided to developed country agriculture," he said.

"We all do understand that all economies become inward looking during difficult economic times. However we can avoid shutting out other markets."

Over 800 people including five heads of state are attending the conference. Last year leaders were optimistic in the face of unprecedented 5.2 percent growth on the continent, but the UN sees it slowing to two percent in 2009.

Zuma said many African countries were still highly indebted and dependent on aid, facing starvation and poverty as rich governments responded to the crisis with massive stimulus packages.

But he said the economic downturn provided opportunities for the continent along with challenges.

"Africa can build on its human resources, its young and growing population," he said.

"The crisis provides an opportunity to alleviate the effects of the so-called 'brain-drain,' by attracting the diaspora back home to reconstructing the continent."

Africa's Competitiveness Report, released Wednesday by the WEF with the World Bank and African Development Bank, showed poor infrastructure and access to finance plus trade barriers were continuing to hamper competitiveness on the continent.

Too many trade barriers

There are "too many trade barriers between African countries as it is and I think a more unified market is going to help everybody," said Jennifer Blanke, director of the WEF Global Competitiveness network.

"In general the protectionist measures we have seen rise up around the world are scary and the wrong thing for today."

Africa was affected hard by the financial crisis with many countries badly affected by a plunge in the prices of primary goods: their main resource base.

After five years of annual growth pegged at more than five percent, growth on the continent is expected to slow to two percent this year, according to UN estimates.

This would be the lowest growth rate in some two decades.

Another area of focus at the WEF will be China's burgeoning trade with Africa, which reached a "historic" level of $106.8-billion last year according to China's Ministry of Commerce.

Abuses by African despots

Critics however say Beijing is exploiting Africa's natural and mineral wealth, including oil, to fuel its energy-driven economy, and turning a blind eye to abuses by African despots to keep trade relations going strong.

The Cape Town meeting is expected to touch on China's involvement in Africa's financial sector. Jiang Jianqing, the president of the Industrial and Commercial Bank of China is one of the key Chinese delegates to the summit.

"The focus for the summit are the implications of the global economic crisis for Africa," said Katherine Tweedie, the WEF chief for the continent.

She said the delegates will look at "what it means for Africa, for our economies, for our leaderships, for our different organisations that are intimately affected" by the global downturn.

The Forum will also hold a special session on the 2010 World Cup hosted by South Africa, the first time the football extravaganza is being held on the continent.

Foreign investment, natural resources, agriculture, Zimbabwe's economic recovery and Africa's relations with China will also feature in the talks.

AFP

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