I would like to see Africa’s profile being enhanced globally.
While this is a great opportunity to showcase Africa’s potential for growth,
it’s also an opportunity to learn from past successful investments
in the public-private space. We need to show the world that Africa
can become a growth engine of the world.
Tangible actions are what we need from this forum.
Fortunately, Africa has well this particular storm better
than the western world. Africa’s resilience demonstrates that there is
an opportunity for the world to invest in the continent
and reap acceptable rewards. According to the IMF’s latest growth
forecast 24 of the world’s 50 fastest growing economies over the
next five years will be on the African continent. These economies are projected
to grow at average rates above five percent per annum. I believe that
as Africa’s growth continues, we will begin to emerge as
an increasingly important market and investment destination for the growing
list of emerging market multinational companies.
Research into development economics has demonstrated that there is no silver
bullet when it comes to growth takeoffs. In particular, China’s growth experience
has generally turned most theories on their heads. Countries that have been
most successful in improving their growth performance have followed
a broad range of policies. However, there are some first order of principles
of economic policy that all successful countries have, morally, has adhered to.
These include the maintenance of macroeconomic stability, a desire to
integrate into the world economy, effective protection in terms
of property rights and contract enforcement, the maintenance
of social cohesion and political stability driven by more inclusive
political and economic environment and, of course, effective governance.
The barriers to growth in Africa largely relate to the absence of some
of the first order of principles of economic policy such as
the maintenance of macroeconomic stability, a desire to integrate into the world economy,
effective protection in terms of property rights and contract enforcement,
and the maintenance of social cohesion and political stability.
To these we can add education. Although the quantitative indicators
of education levels in Africa have improved, they continue to lag
other developing regions. More than 75 percent of the African countries
covered in the World Economic Forum competitiveness report are
still in the bottom quartile on school in Rome and from
primary through to tertiary level.
Africa has approximately ten percent of the world’s oil and gas reserves
and even larger proportion of the world’s new discoveries have been in Africa.
We also have huge hydroelectric potential. To unlock these we need effective
partnerships between governments and the private sector, governments
to provide objective investment climate and infrastructure, private sector
to bring technologies, expertise, and capital. It is critical to the success
of these that the private sector transfers technology, creates capacity,
and uplifts communities as part of the process.