While US President-elect Obama may need to focus on domestic issues and African aid may become a low priority, significant opportunities may arise for Africa as private sector investment takes up the slack, said chief economist from Investment Solutions, Chris Hart, on Tuesday.

Hart told an audience of government officials and businesspeople at a conference organised by Omega Investment Research that while big economies face a period of zero yield and zero growth, an interesting dynamic to the credit crisis is that emerging markets could step in and attract flows as they will offer yield and growth.

"South Africa and Africa must start listening to this and there are opportunities – we have tax competitiveness, growth and some yield and we do fit into that pattern. Emerging markets as a whole will benefit from that pattern," he said.

Hart, however, also joined the ranks of some leading economists who have in the past week cautioned against government rhetoric damaging foreign fund flows by indicating various leftward-leaning tendencies in the face of the crisis.

He said it is paramount that macroeconomic policies that are sensible and engender confidence are stuck to. He also called for radical tax shifts away from burdening savings, as the current account deficit needed to be financed.

Hart feels that the global crisis will nevertheless see to a rough ride for emerging markets over the next few months, with the rand possibly continuing to be vulnerable up to the 13/14 per dollar mark. The rand was last at 10.2631 to the dollar.

"Investment flows are going to be different," said Hart.

But he concluded by saying that Obama will definitely engage with Africa in terms of politics and could be a catalyst in helping resolve the Zimbabwe stalemate.

"I suspect he will hold Africa to higher standards. What is interesting is there may be a resolution in Zimbabwe – Obama could do something more powerful than President Bush did there," says Hart.

However, Hart acknowledges that the irony is that despite his reputation, Bush was "astounding" for Africa.

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