Anglo American South Africa CEO Lazarus Zim says the company has investment projects totalling $6,2-billion planned over the next four years, of which $4,2-billion is destined for Africa.
Speaking at the World Economic Forum’s 15th annual Africa Economic Summit, Zim said, through its associated company AngloGold Ashanti, there were huge investment projects in Ghana and other countries.
Anglo American has invested R100-billion in South Africa over the past five years, more than any other company, he added.
He opened his speech with a call from business to support the proposals contained in the Commission for Africa report on promoting economic growth and development across the continent.
The CEOs of two of Africa’s largest multinational companies — Anglo American and SABMiller, together with former Unilever head and current Reuter’s chairperson Niall Fitzgerald — voiced their commitment to promoting future African investment opportunities and to spreading the word about their successes on the continent. They also promised 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.
SABMiller CEO Graham Mackay told reporters that a review of the global brewer’s operations showed that its African operations had recorded higher long-term growth 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,” Mackay said. “And it’s my impression that corruption is dropping.”
Fitzgerald noted that Unilever had been operating successfully in Africa for more than 100 years, generating strong returns on capital. He believes businesses that have enjoyed success need to be more vocal in their praise of working on the continent and to persuade others to invest.
All agreed that African businesses and multinational corporations doing business on the continent had to come out in support of the Commission on Africa, as it represented a “unique window” to gain acceptance for many of its proposals from the developed countries.
The Commission for Africa report has proposed that aid to Africa be increased to $25-billion a year and that this aid is critical for taking Africa forward.
Zim noted that a big problem for Africa was that there is more trade with the rest of the world than within African countries. — I-Net Bridge