Mo Ibrahim, the chairperson of Celtel International and the Mo Ibrahim Foundation, which supports good governance in Africa, speaks to Stephanie Wolters.
How do you think initiatives like your foundation’s prize for African heads of state might help to strengthen institutions?
We want to shed the light on the mystery of this thing called governance. What is governance? What is it about? By giving information to civil society, we are giving substance to the conversation. First, we bring the issue of governance to the centre of discussion, by shedding light on the various issues there and giving that information to civil society. That enables people to formulate arguments and positions.
Do you find that civil society is often far removed from the business world and financial transactions?
I think it’s time for all to come together: civil society, business, government … Businesses are becoming increasingly aware of social responsibility … Again, don’t forget the pressure of civil society in Western countries … So what is happening is, first business is reforming itself and there is a much better standard of governance today than there was some years ago. And I’m sure it will continue to improve. There is nothing like transparency and openness, which really help.
How will increased transparency on the part of businesses change the nature of doing business on the African continent?
Well, you can see how, for example, unacceptable conditions of employment from construction companies, whether it’s the Far East or in Africa, became a major issue at the shareholders’ meetings of the big companies. How it’s again a damaging PR issue for companies if you treat your workers like sub-humans. That forces business to pay attention.
I think there is a lot of change happening and people in the sort of refined atmosphere of the board meetings in the city of London or Wall Street cannot pretend they didn’t know. We live in an informed society today and that helps. We have also a very active civil society everywhere.
Do you believe that corruption in the developing world has a different impact than it does in the developed world?
Let’s agree that corruption is bad everywhere. It’s more damaging in our society, of course, because the cake is so small. The consequences are far greater in a rural economy because there is very little wealth to go around. To lose some of that wealth through corruption, more people would hurt in Africa.
Somebody stealing a million dollars in Britain, given the gross national product of Britain, is going to have a much smaller effect than somebody stealing a million dollars in Tanzania or any other African country, because the gross national product is much lower so the effect is much higher.
Are you concerned that the emergence of China and India as big players on the continent could set back attempts to increase accountability and transparency?
I’m rather optimistic. I don’t think so because this is happening now in the clear. In front of media scrutiny and civil society scrutiny. What would have gone unnoticed 100 years ago when the West first came here … I mean look, here we are talking about it even before it happens, I think this shows we live in a different world.
There is huge leverage; we live now in a much more connected world. And China is not free just to go around and do what maybe Britain or France or Belgium did 100 years ago. It’s more difficult for it to happen now. China is open to pressure and responds to public scrutiny. India as well. It’s a different world and I’m hopeful we won’t go through the same fighting again.
What China and India can offer us is a competitive market for our products. The price of commodities and raw materials has been going downhill for many years because of our inability to negotiate better prices from a position of strength. There is no doubt that, as Africans, we welcome competition for our products.