The World Economic Forum’s (WEF) 15th annual Africa Economic Summit has opened in Cape Town with a strong call by business to support the proposals contained in the recent Commission for Africa report for promoting economic growth and development across the continent.
The CEOs of two of Africa’s largest multinational companies — mining giant Anglo American plc and SABMiller — along with the chairperson of Reuters on Wednesday voiced their firm commitment to promote future African investment opportunities and spread the word about their successes on the continent to date.
They also pledged to send a message of commitment to Africa ahead of the crucial meeting of the leaders of the Group of Eight developed countries in Scotland in July.
Speaking at the summit’s opening press conference, Anglo American South Africa CEO Lazarus Zim pointed out that the miner has investment projects totalling $6,2-billion planned for the next four years, of which $4,2-billion is destined for Africa. Through its associated company AngloGold Ashanti, huge investment projects are ahead in Ghana and other countries as well.
Anglo American has invested R100-billion in South Africa over the past five years, more than any other company, Zim added.
SABMiller CEO Graham Mackay told reporters that a review of the global brewer’s operations showed that its African operations have recorded higher long-term growth from its African operations than anywhere else in the world, with the perceived risk having been offset by the returns.
“The returns from Africa, and the growth, have been fantastic,” he enthused. “And it’s my impression that corruption is dropping — there has been more stopping of corruption than fresh starting.”
Reuters chairperson Niall FitzGerald noted that Unilever, which he previously headed, has been operating very successfully in Africa for more than 100 years, generating strong returns on capital. He believes businesses that have been successful in Africa such as Unilever and others need to be more vocal in their praises for doing business on the continent, persuading others to invest as well.
All agreed that African businesses and multinational corporations doing business in Africa have to come out strongly in support of the Commission on Africa report ahead of the Group of Eight meeting in July, as this represents a “unique window” to gain acceptance for many of its proposals from the developed countries.
The Commission on Africa report proposes that aid to Africa increases to $25-billion a year, and this aid is critical for taking Africa forward, Anglo American South Africa’s chief executive Lazarus Zim said on Friday.
Zim was speaking at a media conference called ahead of the summit, which runs from June 1 to 3.
In the same way that the United States’s Marshal Plan, after World War II, changed the course of European history, aid to Africa could change the continent’s path, through infrastructure development such as roads and ports.
Aid could also be used to promote institutional capacity in Africa, and the continent needs outside intervention.
A big problem for Africa is that there is more trade with the rest of the world than within African countries, Zim said.
There are good returns to be had from investing in Africa, he added.
At the Africa Economic Summit, business will be shouting about the successes that have been achieved on the continent, Zim said.
WEF Africa director Haiko Alfeld said there is a need for Africa to use its aid money wisely.
Aid will no longer be dumped in Africa, with money ending in Swiss bank accounts, Alfeld added.
A total of 642 delegates are registered for the Africa Economic Summit. Including journalists, more than 700 people will be attending the event, Alfeld said. Delegates will be coming from 40 countries, Alfeld added.
Four heads of state will attend, including South African President Thabo Mbeki.
The other heads of state will be Mozambique’s President Armando Guebuza, Tanzanian President Benjamin Mkapa and Prime Minister of Lesotho Pakalitha Mosisili.
Alfeld said 2005 is Africa’s year, especially since the United Kingdom had chosen the continent as an issue when it will be president of the Group of Eight and European Union. — I-Net Bridge