The illusion that African countries have escaped the adverse consequences of the global financial and economic crisis is becoming transparent, judging from the dire aftershocks of the global downturn, although the ultimate effects on individual countries are still inconsistent and unpredictable. The medium-term reactions of trade partners, donor countries, and private investors are still unknown. Today, the impact on Africa appears to centre around three major channels: global trade, capital flows, and policy responses. Efforts to mitigate Africa’s pain should be continent specific; the international community may choose specific actions to address the fiscal, balance-of-payments shocks and the gaps in private capital. Regardless of steps taken externally, African leaders should seize the opportunity to develop homemade strategies to address her problems. In the mean time monetary control must continue to prioritize its mandates of inflation targeting or growth in a way that complement regulation. Regulatory duties should be more innovative on its core mandate of financial stability. JEL Classification: G28, E58, N1 Keywords: Govt., Policy and Regulation; Central Banks and their Policies, Macroeconomics and Monetary Economics; Growth and Fluctuation
