Short-term capital flows 'not wanted'

AFRICAN countries do not want short-term capital flows since these create their "own volatility" on the continent, Finance Minister Pravin Gordhan has said.

Speaking as a panellist at an Africa dialogue conference in North West yesterday, Gordhan said while they welcomed capital flows, these should be long-term in nature in order to ensure stability in financial markets.

"Capital flows into Africa will increase as confidence increases on the continent," Gordhan said.

There was a "rapid development" of financial infrastructure on the continent, Gordhan said, adding that these would ensure investments stayed on the continent.

African leaders are engaged in various programmes to improve the management of debt and budget transparency.

"We are going to see some rapid development as we go along in the next few years," Gordhan told delegates.

Trade and Industry Minister Rob Davies called for what he referred to as the industrialisation of the African continent.

Key to achieving this, Davies said, was significant infrastructure developments on the continent, such as rail.