• July 3rd, 2020

Investors must come to Africa on our terms - Geingob at WEF

WINDHOEK - Hopes for Africa’s economy have been raised before, particularly when the continent enjoyed boom times prior to the financial crash of 2008, much in part to a commodities “super cycle” that saw sustained high prices for its raw materials. However, prices for Africa’s minerals are well down on those heady days while few countries have yet to escape the extractive model by managing to add value to their commodities. Now, however, there is a growing determination to achieve this, with Zimbabwe’s President Emmerson Mnangagwa and Namibian President Hage Geingob last week calling for value to be added to their countries’ minerals before they are exported. 

“The problem of investors or foreigners who come to Africa is that they come on their own terms. From now on, Africa must tell investors when they come, they come on our terms,” said Geingob, speaking at the World Economic Forum (WEF) on Africa that ended in Cape Town on Friday. “Why should my diamonds go out in raw form?” Geingob questioned. 

Mnangagwa, who said he is striving to rebuild Zimbabwe’s “collapsed economy”, said it is vital to understand the needs of the private sector for investment in technology that could add value locally. 

The over-arching requirement is for African countries to reassure their own populations and investors that they can offer a framework for stable growth, said Seychelles President Danny Faure. “We need to deepen the reform that we are doing to better reflect the need for Africa to have what is necessary in terms of good governance, transparency, accountability and the rule of law,” he said. 

Meanwhile, Africa can achieve a step change in economic growth by addressing shortfalls in governance, reducing barriers to trade and – crucially – embracing the potential of its youth and women, heads of state from across the continent told the WEF. 

“We have the wherewithal to be able to reach for higher levels of growth,” said Cyril Ramaphosa, President of South Africa. “The future is great. It looks very bright for the African continent. If there ever was a time when Africa definitely could be said to be on the rise, this is the time.” 

In addition, oiptimism about intra-African trade is on the rise following the creation of the African Continental Free Trade Area (AfCFTA), which includes nearly every country on the continent. 

However, Botswana’s President Mokgweetsi Eric Keabetswe Masisi warned that leaders must now focus on the practicalities of easing cross-border commerce. “We need to remove all the barriers and put in the enablers to facilitate free trade, beginning in our neighbourhood,” he said. 

If countries deliver on this, Ramaphosa said, AfCFTA could be “the greatest opportunity for economies on the continent to generate growth through trade”. 

In a world where Europe faces shrinking workforces due to ageing and much of Asia soon will, Africa’s fast-growing population also offers a “demographic dividend” to drive future growth. Young Africans represent a huge resource to man the factories and service industries of the future, as well as a big potential market. 

But that demographic dividend will only pay off if the young can find jobs – and that, in turn, will depend on skilling up the young. 

“We need a rebirth of education for the 21st century,” said Amina Mohammed, Deputy Secretary-General of the United Nations. 

At the same time, women must be brought into the fold to a much greater extent, requiring a root-and-branch fight against gender discrimination. This must include opening up previously restricted areas of education such as science to women, said Ethiopian President Sahlework Zewde. 

“The important thing is to invest in our young people ... and empower women,” said Mandulo Ambrose Dlamini, Prime Minister of eSwatini, formerly known as Swaziland. “I learnt that if you include women in leadership in your team, the level of intelligence increases.” 

Namibia’s Minister of Finance, Calle Schlettwein, also participated at the WEF as part of Geingob’s delegation. Schlettwein participated in a panel discussion alongside Pravin Gordhan, South African Minister of Public Enterprises, under the topic “The Future of Public Enterprises”.   Schlettwein also attended plenary sessions on “New Solutions to Tackle Corruption”, “Accelerating Development in the Fourth Industrialisation Revolution in Africa”, and “Enabling Pan-African Financial Flows”. 

The 2019 World Economic Forum on Africa took place from September 4 to 6 in Cape Town under the theme Shaping Inclusive Growth and Shared Futures in the Fourth Industrial Revolution. The meeting convened more than 1 000 regional and global leaders from government, business, civil society and academia. The gathering explored new models to help Africa achieve success at a time when technology is creating dramatic economic and societal shifts.  The meeting’s highly interactive programme also covered issues as diverse as skills and education, the ocean economy, the economic impact of drones, free trade and ecommerce.

Staff Reporter
2019-09-09 09:23:46 | 9 months ago

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