AS THEY packed their bags and headed for the airport on Friday, the phrase “continued economic reform” must have been ringing in their ears, given the number of times key-note speakers addressing the implications of the global economic crisis for Africa repeatedly homed in on the theme.

The strength of the argument delivered would not have taken delegates by surprise, however, as a report released the day before the conference began, by the main international institutions attending the two-day summit, provided ample notice of what was to come.

The Africa Competitiveness Report 2009 warned African states they had to keep opening up their financial systems and embracing the ideals of a free market economy, rather than succumbing to protectionist forces, to sustain any competitiveness in the current recessionary climate.

Produced by the World Bank, the African Development Bank and the World Economic Forum, the report gave sub-Saharan African countries a combined average rating of 3.5 out of ten for competitiveness.

“Protectionist forces are emerging in response to the global economic crisis, yet such measures will further reduce demand and restrict growth. Africa’s leaders must resist domestic political pressures to erect trade barriers, the report said.

Jennifer Blanke of the World Economic Forum said that while the ranking was overall more or less the same when compared to last year, “we’re really concerned that in the face of the economic crisis and given the challenges to capitalism and open markets that we’re seeing, that there is a back-pedalling on some of the important reforms that we’ve seen.”

Economic growth across Africa has averaged around 6 per cent per annum between 2001 and 2008, but according to International Monetary Fund (IMF) it could drop to as low as 1.5 per cent in 2009 due to the economic crisis.

This contraction is having a negative impact on job and food security, which in turn has increased the public pressure on Africa’s leaders to introduce measures, such as protecting their own markets through import taxes, to help to ease the pain.

IMF managing director Dominique Strauss-Kahn explained that while Africa was the innocent victim of the “financial tsunami” affecting the globe, he insisted the “depth and breadth of the crisis” was causing demand for African exports to collapse.

In addition, foreign direct investment was “drying up” and many investors were pulling their money back from investment opportunities that would have appeared attractive 12 months ago.

World Bank Africa region vice president Obiageli Katryn Ezekweli said countries that invested in infrastructure would suffer less from the crisis, with South Africa’s gains in employment from investing in infrastructure ahead of the 2010 World Cup a prime example.

He added that the countries that sustained reforms, strengthened good governance and modernised local capital markets would be in a strong position to take advantage of the economic rebound when it happened.

But aside from continuing to reform their financial systems, what else could be done to counter act the effects of the global recession?

Addressing the delegates, former UN boss Kofi Annan said much of the continent’s fate rested with the current crop of leaders, who needed to guide their countries through the global recession responsibly if the gains since the turn of the millennium were not to be lost.

“We need a new development model that provides security, stability, and addresses people’s needs. Everyone needs to contribute. Business has a key role, as do Africa’s trading and donor partners. But the primary responsibility to make it happen rests with Africa’s political leaders,” he said.

However, Mr Annan also urged western leaders and institutions to follow their own advice, and to reform the IMF and the World Bank, which was essential.

He maintained the new world order needed institutions that were universal and democratic, which would give them greater legitimacy.

He insisted countries currently on the boards of the IMF and the World Bank had to decide how much power they were willing to relinquish to make participation by emerging nations meaningful.

Michael Keating, director of the African Progress Panel, told reporters on Friday that African countries needed to look to the continent’s visionary leaders, like those in Mozambique and Malawi, who are determined to improve the lives of their people.

“In these countries the trauma of civil war has made people realise just how important it is to meet the population’s basic needs. Political differences have to be secondary.

“These leaders also recognise their continued popularity depends on their ability to deliver. The quality of their relationship with the electorate is extremely important,” he said.