Africa’s political and economic elite will gather under the banner of the World Economic Forum (WEF) in Cape Town this week seeking ways to boost growth and trade for the world’s poorest continent.
Host President Thabo Mbeki and counterparts from countries like Mozambique, Zambia and Senegal will be joined by leading business figures, Cabinet ministers and central bankers for the 17th annual WEF on Africa.
About 700 delegates from 42 countries are to attend the three-day meeting, beginning on Wednesday, to study ways in which the southern continent can help itself to a larger slice of the global economic pie.
But observers are sceptical of tangible outcomes from the meeting, whose agenda also includes issues such as combating terrorism and climate change.
“The focus of the summit is really to address capacity constraints and skills gaps and frustrated efforts to sustain and boost growth,” the WEF’s Africa head Haiko Alfeld told reporters in Johannesburg on the weekend.
“We must do several deep dives into how can this capacity be built and how can business contribute to make technology resources available … to build skills.”
The continent’s overall economic growth stopped just shy of 6% last year and a United Nations report released last month predicted a similar rate in the following year.
But the overall figure masks major disparities in performance.
While oil-rich Angola enjoyed a 17,6% growth rate last year, Zimbabwe — encumbered by the world’s highest inflation rate — registered a negative 4,4%.
The economic meltdown in Zimbabwe is among the topics to be discussed by delegates amid growing fears about its impact on the wider Southern Africa region.
The meeting would also consider the impact of Africa’s growing economic ties with non-traditional partners like China, India and Latin America.
According to South African Institute for International Affairs trade economist Philip Alves, the forum is unlikely to address key constraints to African growth like unbalanced global trade and corporate governance concerns about trading with countries like China.
With its agenda themed “Raising the bar”, the forum is set to discuss human resource development to push economic growth.
Alves welcomed a realisation that “Africa’s biggest problem is human capacity”, and said the focus should be on schooling, health provision and skills development.
Alfeld said there would also be a close look at expanding infrastructure like bridges, roads, and hospitals, as well as energy generation.
“There really is a sense now that we are moving into a new phase of Africa’s development,” said a WEF statement.
“What we are talking about now is a virtuous circle that will continue to improve the state of its people, raise the bar for the continent and make success stories the norm.”
While the forum may be useful to create awareness on some issues, “it does so within a global framework stacked up against Africa”, said Iraj Abedian, chief economist for Pan African Investment and Research Services — a private risk analysis service.
“People are prepared to pay exorbitant fees to attend, so we must assume there is some value in it. But is that value for the poor and for development? I suspect not.”
Hassen Lorgat, spokesperson for the South African Non-Governmental Organisation Coalition, doubted the WEF would delve into the real reasons for economic imbalances, like Africa’s high debt burden.
“They will not talk about indigenous business development. They come here to talk about an easy ride for overseas business people.
“Africa is still a net exporter of raw materials, but will they discuss that? They won’t!” — AFP