Address by Dr Tim Thahane, Deputy Governor of the South African Reserve Bank, at the African-Asian Society, Investec Bank Building, Sandton, South Africa.   1. INTRODUCTION The recovery of Asia's economies in 1999, from the very damaging crises that began in mid 1997, provides significant scope for the development of the African countries and a meaningful contribution to African Renaissance. Since 1994, the African economies have on aggregate traded significantly with the Asian economies reflecting the vast potential benefit that African countries stand to gain from a vigorous and sustained recovery in Asian economies. Asia's trade surplus to Africa which stood at US$4,6 billion in 1994, decreased to a deficit of US$1,1 billion in 1997, before increasing substantially to US$5,1 billion in 1998 following the Asian crisis.I will comment first on Japan and then the post-crisis recovery of the Asian economies, of Thailand, the Philippines, Malaysia, Indonesia and Korea. Second, I will define the concept of African Renaissance and the potential contribution of the Asian economic recovery to African Renaissance. Finally, I will briefly touch on the ability of the Asian countries to combine their culture with the acquisition and development of the most advanced technologies and globalization process. 2. JAPAN'S ECONOMIC RECOVERYThere is a world wide consensus that a strong economic revival of Japan's economy would herald a significant recovery for the Asian economies as a whole. Japan's annual real GDP growth rate, which fell to -2,8 per cent in 1998 is expected to increase significantly to 1,0 per cent in 1999 and to 1,5 per cent by the year 2000. The annual inflation rate in Japan, which rose from 0,1 per cent in 1996 to 1,7 and 0,6 per cent in 1997 and 1998 respectively, is expected to drop to -0,4 per cent by the end of 1999. The annual current account balance in Japan, which reached a deficit of US$121 billion in 1998, is expected to increase further to US$143 billion in 1999 before falling somewhat to US$138 billion in 2000. This expected turnaround in the performance of Japanese economy is not only critical for Africa's development but for the whole world.Japan undertakes significant direct trade with Africa. Japanese imports from Africa were US$3,9 billion in 1994, and increased to US$4,9 billion in 1996, before declining to US$3,8 billion in 1998 following the Asian crisis. Similarly, Japanese exports to Africa increased significantly from US$5,8 billion in 1994 to US$6,3 billion in 1996, before dropping to US$4,2 billion in 1998 and US$4,5 billion in 1999. The Japanese economy had a trade surplus of US$1,8 billion with African countries in 1994 and 1995. It turned around to deficits of US$85,4 million and US$515,0 million in 1996 and 1997, respectively, following Japan's economic slowdown and strengthening of the yen in 1996. The challenge to African economies is to become more competitive in Asian markets, so as to turnaround the trade surplus of US$644.0 million in 1998.The situation is slightly different with SADC. Since 1994, Japan has operated with a significant trade deficit. Japan's trade deficit with SADC decreased from US$476,4 million in 1994 to US$284,6 million in 1995 and then significantly increased to US$1,0 billion in 1997 before falling somewhat to US$747,8 million in 1998. SADC would benefit significantly from Japan's economic revival if it were to sustain the level of competitiveness that it has attained thus far. This requires a clear export focus and strategy vis-a-vis the huge Japanese market. It is important not to forget that Japan is the second largest economy in the world and Japan is well-disposed to Africa at this stage. 3. ASIA'S ECONOMIC RECOVERYFollowing worldwide crises that developed from the southeast Asian economies, recent indications point to a promising economic revival in Asia as a whole, particularly in those countries where the crisis was most severe: Thailand; the Philippines; Indonesia; Malaysia and Korea. The combined annual real GDP growth rate of these countries fell from 6