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countries on demand for African exports as well as investment flows,remittances and tourism receipts.In addition, pressure to recapitalise the banking sector and providesupport for ailing industries may force developed countries to cutdown on official development assistance (ODA) flows to Africa. Giventhe importance of ODA in financing social infrastructure, this will bea major setback for the region. Since African countries are heavilydependent on aid-funded social protection programmes, reductionin aid could affect the poor considerably and thus increase their vulnerability.According to the World Bank and IMF, up to 100 millionpeople, the majority in Africa, are at risk of falling into poverty.The crisis facing us today is unprecedented in terms of its magnitudeand potential impact. It therefore requires bold and swift responsesto contain and reduce its negative effects on African economies. Althoughthe crisis was caused by events beyond our shores and control,concerted actions are needed at the national and internationallevels to find an effective solution.Let me begin with national actions that are needed to minimise thenegative effects of the crisis on the African region. First, there is theneed to strengthen economic policy management as well as deepenreforms. This is not only crucial for minimising the effects of the financialcrisis on African economies, but also for creating a sound basisfor sustainable growth. African ministers and governors of centralbanks continue deepening economic reforms to provide a strong andsustained basis for growth.Second, the financial crisis underscores the importance of developinga sound regulatory and supervisory framework for the financialsector. In this regard, African countries need to undertake a comprehensivereview of their regulatory and supervisory regimes with theview of identifying areas that require further strengthening. Thereis also a need to ensure that all sectors of the financial industry aresubjected to proper regulation and oversight. Improving structuresof governance and accountability is also crucially important.Third, since the poor are likely to bear disproportionately the bruntof the financial crisis, appropriate forms of social protection are requiredto cushion the effect of the crisis on vulnerable segments ofIntegrating Africa189