Africa must improve its political stability and work hard to establish standards for good governance if it is to play a bigger role in the world economy, officials told a continental economic summit in Maputo, Mozambique. Despite a wealth of natural resources, the continent is struggling to lift its economic growth rate at a time when poverty levels among its citizens are rising.

«If we can pay good attention to a framework of good governance, we will be able to turn a new leaf,» Linah Mohohlo, governor of the central Bank of Botswana told the World Economic Forum (WEF) Africa summit.

The WEF?s annual Africa Competitiveness Report, released on Wednesday, showed the continent falling behind even though regional conflicts are ending and democracy is spreading. It described Africa?s growth performance «as the worst economic disaster of the 20th century» and gave a downbeat assessment of the continent?s prospects.

African economies expanded by an estimated 3.7 per cent in 2003 ? the highest rate in four years, but slow compared to Asia?s reviving powerhouses. Progress was supported, in part, by debt relief and rising commodity prices. Modest economic growth is expected this year, but Africa will likely fail to meet the Millennium Development Goals, which include halving the proportion of people living in poverty by 2015. Past colonial behaviour and trade practices by the rich nations of the West are also seen as having contributed to the continent?s woes.

«The relationship has been largely colonial... shaped by the extraction of wealth and nothing else. That relationship has not changed much,» said South African Finance Minister Trevor Manuel. «The bulk of FDI (foreign direct investment) into Africa is that which seeks extraction, primarily of oil.»

Some countries such as Zimbabwe, have been shunned by investors worried about property and the rule law after the government started seizing white-owned farms in 2000, for the resettlement of landless blacks. Zimbabwe?s economy has experienced five years of recession ? contracting by 30 percent during that period. It is seen shrinking by five percent this year.

But other countries like Botswana continue to prosper and Mohohlo attributed this to good leadership and a prudent fiscal policy as well as a consistent and transparent monetary policy.

Mohohlo?s diamond-rich Botswana was ranked the most competitive African country by the WEF.

«There is tremendous scope for Africa to forge ahead stronger ... here is light at the end of the tunnel,» she said.

«International lenders are listening because we have international ratings agencies paying attention to African countries. Many African countries are being rated favourably.»

Similar sentiments were echoed by South Africa?s Manuel.

«The biggest challenge is transparency. Rules need to be transparent and predictable,» he said.