By JUDITH NAMUTOWE in Addis Ababa –

THE African Union (AU) has said that diversification of African economies was the main solution to resolving challenges facing most countries as a result of falling commodity prices.
AU commissioner for economic affairs Anthony Mothae Maruping said drought, flooding and strengthening of the United States (US) dollar coupled with crushing commodity prices, have taken a heavy toll on African economies with dire consequences for ordinary citizens.
Dr  Maruping was speaking at the opening of the 9th  Joint  Annual meeting of the AU  Specialised Technical Committee  on Finance , Monetary  Affairs , Economic Planning  and Integration  at the  United Nations Economic Commission for Africa (UNECA) conference  of African Ministers  of Finance, Planning and Economic Development in Addis Ababa , Ethiopia.
‘Declined commodity exports has meant a cut in production, raised unemployment, fallen incomes and eroded tax bases as well as reduced foreign exchange earnings. This phenomenon sent devastating ripples down the economic and financial system,’ Dr Maruping said.
He noted that the situation took a heavier toll on economies that were heavily dependent on a narrow base of commodity exports.
Dr Maruping said  adverse effects of the four causes of the economic and  financial ‘headwinds’ slowed down the system  through chain reaction, resulting  in financial and macro-economic imbalances, downward revision of growth rates,  social-economic development and increased poverty .
He said it was against this backdrop that the ongoing meeting would hold a ministerial round table to discuss the current financial and economic challenges.
The meeting was held under the theme: ‘addressing the impact of drought,  floods and declining commodity prices in Africa: what coping strategies and capacities are required’.
The round table saw delegates exchange views, experiences and swapping of credible coping ideas.