Not Enough Macroeconomic Stability to Reduce Poverty, Matekane

Not Enough Macroeconomic Stability to Reduce Poverty, Matekane

Sub-Saharan Africa has achieved macroeconomic stability and growth though this has not achieved sufficient enough growth to reduce poverty, according to the Governor of the Central Bank of Lesotho, Mr Motlatsi Matekane.

In Lesotho, for example, government has based its economic development strategy on five year national development plans, from independence in 1966 until the late 1980's, which seemed to primarily focus on achieving higher rates for economic growth to raise the standard of living of Basotho.

Speaking at a symposium marking the 25th anniversary of the Central Bank of Lesotho on January 27, Mr Matekane noted that the Central Bank has, since its inception in 1980, helped government to achieve this goal, working with government to reduce poverty.

In its endeavours to reduce poverty, the CBL had helped ensure monetary and financial stability of the economy, improving access to credit for exporters as well as improving rural financial intermediation.

Despite the high growth rates of the 1980's and much of the 1990's, poverty has remained widespread, with a recent study by Sechaba Consultants revealing that the proportion of poor families has actually increased since 1990 to cover about 68% of the population

'Consequently, the government and donor agencies have begun formulating policies that put poverty reduction at the centre of Lesotho's development strategy, and that put poverty reduction as the highest priority for the government', Governor Matekane said.

Governors of the Central Banks of Kenya, Malawi, Zambia and Uganda; leaders of the local banking and non-banking financial institutions; the business community; academics as well as senior officials of the Central Bank of Lesotho attended the symposium.

27 January 2005

source: LENA