/ 31 May 2005

African business to push British aid plan

African business leaders attending this week’s World Economic Forum (WEF) for Africa will come up with ways to back a British plan for massive aid for the continent whose fate is to be decided at the Group of Eight (G8) summit in July, organisers said on Friday.

The Commission for Africa report calling for an injection of an extra $25-billion in aid annually to the continent, providing 100% debt relief and breaking down trade barriers is to be the centrepiece of the three-day meeting beginning on Wednesday in Cape Town.

The 650 participants from 40 countries, including many CEOs from big business, are to come up with an “action plan” ahead of the July 6 to 8 summit of the G8 club of rich nations in Gleneagles, Scotland.

“We hope that the summit will send a very strong and positive message to Gleneagles in support of African aspirations and in support of the ambitious proposals by [British] Prime Minister [Tony] Blair and the Commission for Africa,” said Haiko Alfeld, director for Africa of the Swiss-based WEF.

“Business has an enormous interest if $25-billion per year is to flow into Africa,” he told a news conference. “Clearly, that will unleash enormous potential and business opportunities on the continent.”

If African businesses can show that they are ready to support the commission’s goals, this “will give the G8 a sense of confidence and strengthen the call of those from the United Kingdom and others who are more generous”, said Alfeld.

Chief executive Lazarus Zim of South African mining giant Anglo American said it is key in the weeks leading up to the G8 summit that there be a “unified message from politicians and businesses to say, ‘Yes, indeed, we are behind this report. It will fundamentally change the destiny of Africa.'”

Zim also said that the WEF meeting must convey the message to foreign investors that Africa is a good place to do business and strip away the perception of Africa as a continent riddled with wars and back-breaking poverty.

“I’ve seen a tremendous amount of returns that companies are making on the continent. We don’t hear a lot about the successes,” said Zim.

The 15th WEF for Africa meeting will feature a strong South African presence, in keeping with its standing as the economic powerhouse on the continent. President Thabo Mbeki and key members of his government are to attend. — Sapa-AFP

Read more about the Africa Economic Summit on the World Economic Forum website