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Developing World’s Share of Global Investment to Triple by 2030, Says New World Bank Report

Posted on 18 May 2013 by Africa Business

Seventeen years from now, half the global stock of capital, totaling $158 trillion (in 2010 dollars), will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock, says the latest edition of the World Bank’s Global Development Horizons (GDH) report, which explores patterns of investment, saving and capital flows as they are likely to evolve over the next two decades.

Developing countries’ share in global investment is projected to triple by 2030 to three-fifths, from one-fifth in 2000, says the report, titled ‘Capital for the Future: Saving and Investment in an Interdependent World’. With world population set to rise from 7 billion in 2010 to 8.5 billion 2030 and rapid aging in the advanced countries, demographic changes will profoundly influence these structural shifts.

“GDH is one of the finest efforts at peering into the distant future. It does this by marshaling an amazing amount of statistical information,” said Kaushik Basu, the World Bank’s Senior Vice President and Chief Economist. “We know from the experience of countries as diverse as South Korea, Indonesia, Brazil, Turkey and South Africa the pivotal role investment plays in driving long-term growth. In less than a generation, global investment will be dominated by the developing countries. And among the developing countries, China and India are expected to be the largest investors, with the two countries together accounting for 38 percent of the global gross investment in 2030. All this will change the landscape of the global economy, and GDH analyzes how.”

Productivity catch-up, increasing integration into global markets, sound macroeconomic policies, and improved education and health are helping speed growth and create massive investment opportunities, which, in turn, are spurring a shift in global economic weight to developing countries. A further boost is being provided by the youth bulge. With developing countries on course to add more than 1.4 billion people to their combined population between now and 2030, the full benefit of the demographic dividend has yet to be reaped, particularly in the relatively younger regions of Sub-Saharan Africa and South Asia.

The good news is that, unlike in the past, developing countries will likely have the resources needed to finance these massive future investments for infrastructure and services, including in education and health care. Strong saving rates in developing countries are expected to peak at 34 percent of national income in 2014 and will average 32 percent annually until 2030. In aggregate terms, the developing world will account for 62-64 percent of global saving of $25-27 trillion by 2030, up from 45 percent in 2010.

“Despite strong saving levels to finance their massive investment needs in the future, developing countries will need to significantly improve their currently limited participation in international financial markets if they are to reap the benefits of the tectonic shifts taking place,” said Hans Timmer, Director of the Bank’s Development Prospects Group.

GDH paints two scenarios, based on the speed of convergence between the developed and developing worlds in per capita income levels, and the pace of structural transformations (such as financial development and improvements in institutional quality) in the two groups. Scenario one entails a gradual convergence between the developed and developing world while a much more rapid scenario is envisioned in the second.

The gradual and rapid scenarios predict average world economic growth of 2.6 percent and 3 percent per year, respectively, during the next two decades; the developing world’s growth will average an annual rate of 4.8 percent in the gradual convergence scenario and 5.5 percent in the rapid one.

In both scenarios, developing countries’ employment in services will account for more than 60 percent of their total employment by 2030 and they will account for more than 50 percent of global trade. This shift will occur alongside demographic changes that will increase demand for infrastructural services. Indeed, the report estimates the developing world’s infrastructure financing needs at $14.6 trillion between now and 2030.

The report also points to aging populations in East Asia, Eastern Europe and Central Asia, which will see the largest reductions in saving rates. Demographic change will test the sustainability of public finances and complex policy challenges will arise from efforts to reduce the burden of health care and pensions without imposing severe hardships on the old. In contrast, Sub-Saharan Africa, with its relatively young and rapidly growing population as well as robust economic growth, will be the only region not experiencing a decline in its saving rate.

In absolute terms, however, saving will continue to be dominated by Asia and the Middle East. In the gradual convergence scenario, in 2030, China will save far more than any other developing country — $9 trillion in 2010 dollars — with India a distant second with $1.7 trillion, surpassing the levels of Japan and the United States in the 2020s.

As a result, under the gradual convergence scenario, China will account for 30 percent of global investment in 2030, with Brazil, India and Russia together accounting for another 13 percent. In terms of volumes, investment in the developing world will reach $15 trillion (in 2010 dollars), versus $10 trillion in high-income economies. China and India will account for almost half of all global manufacturing investment.

“GDH clearly highlights the increasing role developing countries will play in the global economy. This is undoubtedly a significant achievement. However, even if wealth will be more evenly distributed across countries, this does not mean that, within countries, everyone will equally benefit,” said Maurizio Bussolo, Lead Economist and lead author of the report.

The report finds that the least educated groups in a country have low or no saving, suggesting an inability to improve their earning capacity and, for the poorest, to escape a poverty trap.

“Policy makers in developing countries have a central role to play in boosting private saving through policies that raise human capital, especially for the poor,” concluded Bussolo.

Regional Highlights:

East Asia and the Pacific will see its saving rate fall and its investment rate will drop by even more, though they will still be high by international standards. Despite these lower rates, the region’s shares of global investment and saving will rise through 2030 due to robust economic growth. The region is experiencing a big demographic dividend, with fewer than 4 non-working age people for every 10 working age people, the lowest dependency ratio in the world. This dividend will end after reaching its peak in 2015. Labor force growth will slow, and by 2040 the region may have one of the highest dependency ratios of all developing regions (with more than 5.5 non-working age people for every 10 working age people). China, a big regional driver, is expected to continue to run substantial current account surpluses, due to large declines in its investment rate as it transitions to a lower level of public involvement in investment.

Eastern Europe and Central Asia is the furthest along in its demographic transition, and will be the only developing region to reach zero population growth by 2030. Aging is expected to moderate economic growth in the region, and also has the potential to bring down the saving rate more than any developing region, apart from East Asia. The region’s saving rate may decline more than its investment rate, in which case countries in the region will have to finance investment by attracting more capital flows. The region will also face significant fiscal pressure from aging. Turkey, for example, would see its public pension spending increase by more than 50 percent by 2030 under the current pension scheme. Several other countries in the region will also face large increases in pension and health care expenditures.

Latin America and the Caribbean, a historically low-saving region, may become the lowest-saving region by 2030. Although demographics will play a positive role, as dependency ratios are projected to fall through 2025, financial market development (which reduces precautionary saving) and a moderation in economic growth will play a counterbalancing role. Similarly, the rising and then falling impact of demography on labor force growth means that the investment rate is expected to rise in the short run, and then gradually fall. However, the relationship between inequality and saving in the region suggests an alternative scenario. As in other regions, poorer households tend to save much less; thus, improvements in earning capacity, rising incomes, and reduced inequality have the potential not only to boost national saving but, more importantly, to break poverty traps perpetuated by low saving by poor households.

The Middle East and North Africa has significant scope for financial market development, which has the potential to sustain investment but also, along with aging, to reduce saving. Thus, current account surpluses may also decline moderately up to 2030, depending on the pace of financial market development. The region is in a relatively early phase of its demographic transition: characterized by a still fast growing population and labor force, but also a rising share of elderly. Changes in household structure may also impact saving patterns, with a transition from intergenerational households and family-based old age support to smaller households and greater reliance on asset income in old age. The region has the lowest use of formal financial institutions for saving by low-income households, and scope for financial markets to play a significantly greater role in household saving.

South Asia will remain one of the highest saving and highest investing regions until 2030. However, with the scope for rapid economic growth and financial development, results for saving, investment, and capital flows will vary significantly: in a scenario of more rapid economic growth and financial market development, high investment rates will be sustained while saving falls significantly, implying large current account deficits. South Asia is a young region, and by about 2035 is likely to have the highest ratio of working- to nonworking-age people of any region in the world. The general shift in investment away from agriculture towards manufacturing and service sectors is likely to be especially pronounced in South Asia, with the region’s share of total investment in manufacturing expected to nearly double, and investment in the service sector to increase by more than 8 percentage points, to over two-thirds of total investment.

Sub-Saharan Africa’s investment rate will be steady due to robust labor force growth. It will be the only region to not see a decrease in its saving rate in a scenario of moderate financial market development, since aging will not be a significant factor. In a scenario of faster growth, poorer African countries will experience deeper financial market development, and foreign investors will become increasingly willing to finance investment in the region. Sub-Saharan Africa is currently the youngest of all regions, with the highest dependency ratio. This ratio will steadily decrease throughout the time horizon of this report and beyond, bringing a long lasting demographic dividend. The region will have the greatest infrastructure investment needs over the next two decades (relative to GDP). At the same time, there will likely be a shift in infrastructure investment financing toward greater participation by the private sector, and substantial increases in private capital inflows, particularly from other developing regions.

Source: WorldBank.org

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Developing countries to dominate global saving and investment, but the poor will not necessarily share the benefits, says report

Posted on 18 May 2013 by Africa Business

STORY HIGHLIGHTS
  • Developing world’s share of global investment to triple by 2030
  • China, India will be developing world’s largest investors
  • Boost to education needed so poor can improve their well-being

In less than a generation, global saving and investment will be dominated by the developing world, says the just-released Global Development Horizons (GDH) report.

By 2030, half the global stock of capital, totaling $158 trillion (in 2010 dollars), will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock, says the report, which explores patterns of investment, saving and capital flows as they are likely to evolve over the next two decades.

Titled ‘Capital for the Future: Saving and Investment in an Interdependent World’, GDH projects developing countries’ share in global investment to triple by 2030 to three-fifths, from one-fifth in 2000.

Productivity catch-up, increasing integration into global markets, sound macroeconomic policies, and improved education and health are helping speed growth and create massive investment opportunities, which, in turn, are spurring a shift in global economic weight to developing countries.

A further boost is being provided by the youth bulge. By 2020, less than 7 years from now, growth in world’s working-age population will be exclusively determined by developing countries. With developing countries on course to add more than 1.4 billion people to their combined population between now and 2030, the full benefit of the demographic dividend has yet to be reaped, particularly in the relatively younger regions of Sub-Saharan Africa and South Asia.

GDH paints two scenarios, based on the speed of convergence between the developed and developing worlds in per capita income levels, and the pace of structural transformations (such as financial development and improvements in institutional quality) in the two groups. Scenario one entails a gradual convergence between the developed and developing world while a much more rapid one is envisioned in the second.

In both scenarios, developing countries’ employment in services will account for more than 60 percent of their total employment by 2030 and they will account for more than 50 percent of global trade. This shift will occur alongside demographic changes that will increase demand for infrastructural services. Indeed, the report estimates the developing world’s infrastructure financing needs at $14.6 trillion between now and 2030.

The report also points to aging populations in East Asia, Eastern Europe and Central Asia, which will see the largest reductions in private saving rates. Demographic change will test the sustainability of public finances and complex policy challenges will arise from efforts to reduce the burden of health care and pensions without imposing severe hardships on the old. In contrast, Sub-Saharan Africa, with its relatively young and rapidly growing population as well as robust economic growth, will be the only region not experiencing a decline in its saving rate.

Open Quotes

Policy makers in developing countries have a central role to play in boosting private saving through policies that raise human capital, especially for the poor. Close Quotes

Maurizio Bussolo
Lead Author, Global Development Horizons 2013

In absolute terms, however, saving will continue to be dominated by Asia and the Middle East. In the gradual convergence scenario, in 2030, China will save far more than any other developing country — $9 trillion in 2010 dollars — with India a distant second with $1.7 trillion, surpassing the levels of Japan and the United States in the 2020s.

As a result, under the gradual convergence scenario, China will account for 30 percent of global investment in 2030, with Brazil, India and Russia together accounting for another 13 percent. In terms of volumes, investment in the developing world will reach $15 trillion (in 2010 dollars), versus $10 trillion in high-income economies. Again, China and India will be the largest investors among developing countries, with the two countries combined representing 38 percent of the global gross investment in 2030, and they will account for almost half of all global manufacturing investment.

“GDH clearly highlights the increasing role developing countries will play in the global economy. This is undoubtedly a significant achievement. However, even if wealth will be more evenly distributed across countries, this does not mean that, within countries, everyone will equally benefit,” said Maurizio Bussolo, Lead Economist and lead author of the report.

The report finds that the least educated groups in a country have low or no saving, suggesting an inability to improve their earning capacity and, for the poorest, to escape a poverty trap.

“Policy makers in developing countries have a central role to play in boosting private saving through policies that raise human capital, especially for the poor,” concluded Bussolo.

Regional Highlights:

East Asia and the Pacific will see its saving rate fall and its investment rate will drop by even more, though they will still be high by international standards. Despite these lower rates, the region’s shares of global investment and saving will rise through 2030 due to robust economic growth. The region is experiencing a big demographic dividend, with fewer than 4 non-working age people for every 10 working age people, the lowest dependency ratio in the world. This dividend will end after reaching its peak in 2015. Labor force growth will slow, and by 2040 the region may have one of the highest dependency ratios of all developing regions (with more than 5.5 non-working age people for every 10 working age people). China, a big regional driver, is expected to continue to run substantial current account surpluses, due to large declines in its investment rate as it transitions to a lower level of public involvement in investment.

Eastern Europe and Central Asia is the furthest along in its demographic transition, and will be the only developing region to reach zero population growth by 2030. Aging is expected to moderate economic growth in the region, and also has the potential to bring down the saving rate more than any developing region, apart from East Asia. The region’s saving rate may decline more than its investment rate, in which case countries in the region will have to finance investment by attracting more capital flows. The region will also face significant fiscal pressure from aging. Turkey, for example, would see its public pension spending increase by more than 50 percent by 2030 under the current pension scheme. Several other countries in the region will also face large increases in pension and health care expenditures.

Latin America and the Caribbean, a historically low-saving region, may become the lowest-saving region by 2030. Although demographics will play a positive role, as dependency ratios are projected to fall through 2025, financial market development (which reduces precautionary saving) and a moderation in economic growth will play a counterbalancing role. Similarly, the rising and then falling impact of demography on labor force growth means that the investment rate is expected to rise in the short run, and then gradually fall. However, the relationship between inequality and saving in the region suggests an alternative scenario. As in other regions, poorer households tend to save much less; thus, improvements in earning capacity, rising incomes, and reduced inequality have the potential not only to boost national saving but, more importantly, to break poverty traps perpetuated by low saving by poor households.

The Middle East and North Africa has significant scope for financial market development, which has the potential to sustain investment but also, along with aging, to reduce saving. Thus, current account surpluses may also decline moderately up to 2030, depending on the pace of financial market development. The region is in a relatively early phase of its demographic transition: characterized by a still fast growing population and labor force, but also a rising share of elderly. Changes in household structure may also impact saving patterns, with a transition from intergenerational households and family-based old age support to smaller households and greater reliance on asset income in old age. The region has the lowest use of formal financial institutions for saving by low-income households, and scope for financial markets to play a significantly greater role in household saving.

South Asia will remain one of the highest saving and highest investing regions until 2030. However, with the scope for rapid economic growth and financial development, results for saving, investment, and capital flows will vary significantly: in a scenario of more rapid economic growth and financial market development, high investment rates will be sustained while saving falls significantly, implying large current account deficits. South Asia is a young region, and by about 2035 is likely to have the highest ratio of working- to nonworking-age people of any region in the world. The general shift in investment away from agriculture towards manufacturing and service sectors is likely to be especially pronounced in South Asia, with the region’s share of total investment in manufacturing expected to nearly double, and investment in the service sector to increase by more than 8 percentage points, to over two-thirds of total investment.

Sub-Saharan Africa’s investment rate will be steady due to robust labor force growth. It will be the only region to not see a decrease in its saving rate in a scenario of moderate financial market development, since aging will not be a significant factor. In a scenario of faster growth, poorer African countries will experience deeper financial market development, and foreign investors will become increasingly willing to finance investment in the region. Sub-Saharan Africa is currently the youngest of all regions, with the highest dependency ratio. This ratio will steadily decrease throughout the time horizon of this report and beyond, bringing a long lasting demographic dividend. The region will have the greatest infrastructure investment needs over the next two decades (relative to GDP). At the same time, there will likely be a shift in infrastructure investment financing toward greater participation by the private sector, and substantial increases in private capital inflows, particularly from other developing regions.

 

Source: WorldBank.org

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Global Trade Partners in the 21st Century

Posted on 15 May 2013 by Africa Business

WASHINGTON, May 15, 2013/African Press Organization (APO)/ — Remarks

Robert D. Hormats

Under Secretary for Economic Growth, Energy, and the Environment

World Economic Forum

Pretoria, South Africa

May 14, 2013

 

 

As Prepared

 

Thank you Lyal for the kind introduction.

I am delighted to be in South Africa again. I visited last fall with Secretary of State Hillary Clinton.

What was most striking then, and continues to be the case today, is the extent to which the image of Africa has changed. According to the IMF, growth in sub-Saharan Africa will surge to 6.1% next year, well ahead of the global average of 4%.

Africa is booming in nearly every sector, ranging from massive energy developments in Mozambique, Tanzania, Ghana, and other countries; to the growth of Rwanda and Kenya’s information and communications technology sectors; to South Africa’s thriving auto industry. And, though far from declaring victory, Africa is reaching a turning point in its hard-fought battles against poverty and corruption.

Today’s Africa looks nothing like what, in 2000, The Economist referred to as the “Hopeless Continent.” It is critical that we concentrate the world’s eyes on the new image of Africa, that of progress and promise. Perspectives are evolving—in 2011, The Economist referred to Africa as the “Rising Continent” and, last March, as the “Hopeful Continent.”

Trade is at the heart of Africa’s economic resurgence. So, in this context, I will speak first about America’s vision for global trade in the 21st century and then, focus on implications and, indeed, opportunities for Africa. America’s global trade agenda in the 21st century is shaped by a foundation laid, in large part, in the mid-20th century. After World War II, American and European policymakers worked together to build a set of international institutions that embodied democratic and free market principles.

The GATT—which led to the WTO—World Bank, IMF, and the OECD were designed to foster international economic cooperation. These institutions were vital to the economic prosperity of the United States, and to the success of America’s foreign policy and national security for the next three generations.

As we move into the 21st century, a new multi-polar global economy has surfaced. The emergence of a new group of economic powerhouses—Brazil, Russia, India, and China, of course, but also countries in Africa—has created momentum (if not necessity) for greater inclusiveness in the global trading system.

At the same time, these new players must assume responsibilities for the international economic system commensurate with the increasing benefits they derive from the global economy. In addition to the geography of international trade, the nature of trade and investment has evolved to include previously unimaginable issues such as e-commerce and sustainability.

So, part of our vision for trade in the 21st century is to build a system that is more inclusive, recognizes the new realities of economic interdependence, and matches increased participation in the global trading system with increased responsibility for the global trading system.

We are making progress with bringing new players into the global trading system as equal partners. Free Trade Agreements with Korea, Colombia, and Panama entered into force last year.

And, we are continuing negotiations on the Trans-Pacific Partnership—or TPP as it is more widely known. With Japan’s anticipated entry into the negotiations, TPP will grow to include 12 countries of different size, background, and levels of development. The agreement, when finalized, will encompass nearly 40% of global GDP and one-third of global trade.

In addition to TPP, we are embarking on a Transatlantic Trade and Investment Partnership with the European Union. TTIP—as it is being called—will strengthen economic ties between the United States and Europe, and enhance our ability to build stronger relationships with emerging economies in Asia, Africa, and other parts of the world.

TPP and TTIP are truly historic undertakings. Our objective is not only to strengthen economic ties with the Asia-Pacific and Europe, but also to pioneer approaches to trade and investment issues that have grown in importance in recent years.

These agreements will seek to break new ground by addressing a multitude of heretofore unaddressed non-tariff barriers, setting the stage for convergence on key standards and regulations, and establishing high quality norms and practices that can spread to other markets. TPP, for example, will raise standards on investment and electronic commerce, and afford protections for labor and the environment.

Our agenda also includes strengthening the multilateral trading system through the World Trade Organization. For example, the United States would like to see a multilateral Trade Facilitation Agreement, which would commit WTO Members to expedite the movement, release, and clearance of goods, and improve cooperation on customs matters. A Trade Facilitation Agreement would be a win-win for all parties—Africa especially.

Cross-border trade in Africa is hindered by what the World Bank calls “Thick Borders.” According to the latest Doing Business Report, it takes up to 35 days to clear exports and 44 days to clear imports in Africa. Clearing goods in OECD countries, in contrast, takes only 10 days on average and costs nearly half as much. Countries like Ghana and Rwanda have benefited tremendously from the introduction of trade facilitation tools and policies.

Ghana, for instance, introduced reforms in 2003 that decreased the cost and time of trading across borders by 60%, and increased customs revenue by 50%. A multilateral Trade Facilitation Agreement will create a glide path for increased trade with and within Africa.

Our views for 21st century global trade partnerships go beyond Europe and the Asia-Pacific, and efforts at the WTO. We are committed to supporting Africa’s integration into the global trading system. The cornerstone of our trade relationship with sub-Saharan Africa is the African Growth and Opportunity Act—known as AGOA. Of all of our trade preference programs, AGOA provides the most liberal trade access to the U.S. market.

Exports from Africa to the United States under the AGOA have grown to $34.9 billion in 2012. While oil and gas still represent a large portion of Africa’s exports, it is important to recognize that non-petroleum exports under AGOA have tripled to nearly $5 billion since 2001, when AGOA went into effect. And, compared to a decade ago, more than twice the number of eligible countries are exporting non-petroleum goods under AGOA.

South Africa, in particular, has made great strides in diversifying its exports to the United States. Thanks to AGOA, the United States is now South Africa’s main export market for passenger cars, representing more than 50% of exported value in 2012. Because AGOA is such an important mechanism for African countries to gain access to the U.S. market, the Administration is committed to working with Congress on an early, seamless renewal of AGOA. Our trade relationship with Africa goes beyond AGOA. For instance, AGOA represents only one-quarter of South African exports to the United States. The composition of South Africa’s exports to the United States, moreover, reflects complex interdependencies and industrial goods.

And, our trade relationship with Africa is not just about one-way trade. There is an immense opportunity for U.S. companies to do business on the continent.

We recently launched the “Doing Business in Africa Campaign” to help American businesses identify and seize upon trade and investment opportunities in Africa. The campaign was announced in Johannesburg, in part, because South Africa can play a prominent role in directing U.S. investment into other parts of the continent.

Although progress has been made on diversifying exports beyond energy, there is much more to be done. African ingenuity and entrepreneurship must be unleashed to drive innovation and growth throughout the continent. This requires closer integration to share ideas, transfer knowledge, and partner on solutions. Through AGOA and the “Doing Business in Africa Campaign”, we are promoting a business climate in Africa that enables and encourages trade and investment. However, realizing these goals is goes beyond trade preferences and commercial linkages.

Africa is also featured in America’s vision for global trade in the 21st century.

For example, we recently launched the U.S.-East African Community Trade and Investment Partnership—the first of its kind—to expand two-way trade and investment. The Partnership is designed to build confidence among the private sector by building a more open and predictable business climate in East Africa. We are considering a variety of mechanisms to accomplish this, including a regional investment treaty and trade facilitation agreement. The Partnership highlights our desire to help Africa integrate and compete in today’s global economy.

I will conclude with one final point. I began by saying that trade is at the heart of Africa’s economic resurgence. Trade is also at the heart of America’s economic recovery. We have a common interest and a common goal.

When it comes to enhanced trade, what is good for Africa is good for America. And what is good for America is good for Africa.

Thank you.


SOURCE

US Department of State

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IFC Promotes Mobile Financial Services in Cote d’Ivoire to Encourage Inclusive Development

Posted on 14 May 2013 by Africa Business

ABIDJAN, Côte d’Ivoire, May 14, 2013/African Press Organization (APO)/ IFC, a member of the World Bank Group, and The MasterCard Foundation today convened key financial industry players to build further momentum for mobile financial services in Cote d’Ivoire. The event recognized the market’s enormous potential, especially for increasing access to finance for low income households, small scale businesses and in hard-to-reach areas.

 

Mobile phone penetration in Cote d’Ivoire is more than 90 percent, while only 14 percent of Ivoirians have access to financial services. Mobile network operators have registered more than two million mobile financial services customers in the past three years. The Ivorian market for mobile financial services is the largest and the most dynamic in the West African Economic and Monetary Union region.

 

Cassandra Colbert, IFC Resident Representative in Cote d’Ivoire,

said,”Improving access to finance is important for supporting shared prosperity in Cote d’Ivoire. IFC and The MasterCard Foundation want to help local financial institutions realize the opportunity in Cote d’Ivoire for the development of agent banking and mobile financial services that will accelerate the reach of financial services to those currently without banking services.”

 

At the seminar in Abidjan, IFC highlighted the business case for engaging in mobile financial services in Cote d’Ivoire. The workshop marked the beginning of the implementation of a four year program by IFC and The MasterCard Foundation to contribute to the development and expansion of mobile financial services in the country.

 

IFC and The MasterCard Foundation consider access to financial services a key tool in poverty alleviation that can dramatically change the lives of the economically marginalized.

 

About The Partnership for Financial Inclusion In January 2012 IFC and The MasterCard Foundation launched the $37.4 million Partnership for Financial Inclusion to bring financial services to an estimated 5.3 million previously unbanked people in Sub-Saharan Africa in five years. The program aims to develop sustainable microfinance business models that can deliver large-scale low-cost banking services, and provides technical assistance to mobile network operators, banks and payments systems providers in order to accelerate the development of low-cost mobile financial services.

 

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit http://www.ifc.org

 

SOURCE

International Finance Corporation (IFC) – The World Bank

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Canada works to improve business environment for African agriculture

Posted on 13 May 2013 by Africa Business

CAPE-TOWN, South-Africa /African Press Organization (APO)/ The Honourable Julian Fantino, Minister of International Cooperation, attended the World Economic Forum on Africa, Grow Africa Investment Forum, and G-8 New Alliance for Food Security and Nutrition Leadership Council in Cape Town, South Africa, to promote private sector partnerships as a way to achieve innovative solutions to the challenges facing sustainable agricultural development, food security, and nutrition in Africa.

 

“Canada has long supported food security and sustainable agricultural development throughout the African continent and recognizes the key role the private sector plays in agriculture as well,” said Minister Fantino. “One of Canada’s key goals in Africa has been to create new partnerships with the private sector to drive agricultural transformation, improve nutrition, and encourage sustainable economic growth that will benefit people across Africa.”

 

Canada welcomes a greater role for the private sector in increasing food security, complementing core public sector functions. Canada is taking an active role in the New Alliance for Food Security and Nutrition, launched in 2012 by the G-8, and is a strong supporter of the Grow Africa Investment Forum and the World Economic Forum on Africa, which aim to accelerate economic diversification, boost strategic infrastructure, and unlock Africa’s potential to facilitate new partnerships between African governments and the private sector to stimulate investment.

 

Canada remains committed to helping African people gain access to sufficient, safe, and nutritious food. Agriculture is the engine for sustainable economic growth in many developing countries. Investments in agriculture help to provide people with a source of employment, which in turn increases food security and household income—key contributors to poverty eradication. Many of our initiatives support small-scale farmers, women in particular, to grow nutritious and diversified crops.

 

Canada is committed to sustainable agricultural development, especially strengthening food security and the resilience of vulnerable populations. Economic Action Plan 2013 reaffirms Canada’s commitment to international development investments in agriculture, food security and nutrition. The new Department of Foreign Affairs, Trade and Development will maintain the mandate of poverty alleviation, and help achieve greater efficiency, accountability, and focus to continue to improve the lives of people in need around the world.

 

SOURCE

Canadian International Development Agency (CIDA)

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“Creating business and market opportunities for Africa’s poor is key to advancing sustainable development in the region.” UNDP Report

Posted on 10 May 2013 by Africa Business

CAPE-TOWN, South-Africa, May 10, 2013/African Press Organization (APO)/ Involving low-income communities in markets and businesses across Africa is essential for economic growth to translate into sustainable development, according to a United Nations Development Programme (UNDP) report released today.

 

“Realizing Africa’s Wealth – Building Inclusive Businesses for Shared Prosperity” draws upon 43 in-depth case studies and a database of 600 institutions to portray the state of inclusive business in Africa, looking at a wide spectrum of sectors from banking to agribusiness.

 

Prepared by UNDP’s African Facility for Inclusive Markets, the report examines the approaches and conditions required to bring economic growth closer to low-income communities in Africa, focusing on how businesses can more readily include them as consumers, entrepreneurs and employees. It describes the status of inclusive business in sub-Saharan Africa and the environment needed to support the enterprises and entrepreneurs. It identifies promising opportunities in enabling enterprises and entrepreneurs to build more – and stronger – inclusive businesses. The report calls for more efforts to support inclusive businesses with incentives and investment schemes as well as knowledge sharing about market information and implementation.

 

By working together to increase information, incentives, implementation support and investments required to make businesses more inclusive, the report makes the case that policy-makers, business owners and development practitioners in Africa will be in a position to make dramatic advances across the Millennium Development Goals (MDGs).

 

“Africa has seen some strong economic growth over the past decade. Nonetheless, rapid economic progress has not brought prosperity to all, and inclusive business represents a promising approach by bringing the benefits of economic growth directly to the poor by including them in value chains,” the Deputy Director of UNDP’s Regional Bureau for Africa, Babacar Cissé, said. “We need young entrepreneurs and innovators as drivers of inclusive businesses. We need organizations that are willing to take the roles of catalysts, supporters and funders of inclusive businesses.”

 

Making sure all African citizens can become entrepreneurs, consumers, employees or producers, requires business environments that provide opportunities for all. Market information, policies and legal frameworks that reduce transaction costs, financing and logistical assistance are key to ensuring businesses that are inclusive of the poor can succeed. Facilitating business and market creation not only generates income, but also basic goods, services and choices, with important implications for each of the MDGs, the eight internationally-agreed targets which aim to reduce poverty by 2015.

 

The report illustrates the impact that businesses and markets have had on the lives of the poor. In Burkina Faso, the French organic cosmetics company L’Occitane invested in the capacities of local women’s cooperatives, helping 15,000 employees to produce and export quality shea butter, and generate US$1.2 million in profits.

 

In Tanzania, a factory operated by local company A to Z, together with Japanese chemical company Sumitomo, produced 30 million long-lasting, insecticide-treated mosquito nets, and employed 7,500 people.

 

In Kenya, Equity Bank and K-Rep Bank funded the country’s national agricultural commodities exchange, which has successfully helped increase the income of thousands of small-scale farmers.

 

“Businesses are key to achieving these advances, but we certainly need more capacity-building entities, such as civil society organizations, governments, developing partners and research institutions, with demonstrated abilities to assist businesses in building inclusive models,” the Chief Executive Officer of Equity Bank in Kenya, James Mwangi, said.

 

The report calls for the development of new inclusive business ecosystem-building initiatives, at national and regional levels, with the support of finance mechanisms to provide resources for coordination, information and funding. It also calls for the creation of centres of excellence to undertake research, document successful approached and share knowledge.

 

The report was launched today by the President of the African Development Bank, Donald Kaberuka, and the Manager of the UNDP Regional Service Centre in Johannesburg, Gerd Trogemann, at a side event of the World Economic Forum for Africa.

 

SOURCE

United Nations Development Programme (UNDP)

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Switzerland promotes broad-based growth in Burkina Faso and Mozambique

Posted on 09 May 2013 by Africa Business

BERN, Switzerland /African Press Organization (APO)/ On 8 May 2013 the Federal Council decided to grant Burkina Faso and Mozambique general budgetary assistance of CHF 32 million each for the years 2013 to 2016. This will support both countries in implementation of their poverty reduction strategies, which focus on broad-based and sustainable growth.

 

Burkina Faso and Mozambique have in recent years displayed on-going macroeconomic stability, robust economic growth and a substantial increase in own revenues. Progress has also been made in social issues such as education, healthcare and water supply. Poverty reduction has seen only limited success, however, and both countries still need to catch up considerably, particularly in terms of basic infrastructure and economic diversification.

 

Through performance-based disbursements for the national budget and targeted policy dialogue, budgetary assistance helps to narrow the remaining development gaps and consolidate previous successes. This is done primarily with measures aimed at supporting broad-based growth and improving public services. Both of these budgetary assistance measures from Switzerland are being made in association with other donors.

 

Switzerland has cooperated with Burkina Faso and Mozambique for many years. It enjoys high visibility and is well regarded within policy dialogue for its expertise in core areas of the reform agenda and the predictability and far-sightedness of its interventions.

 

Burkina Faso and Mozambique are priority countries of Switzerland’s development cooperation, and the efforts of the State Secretariat for Economic Affairs (SECO) and the Swiss Agency for Development and Cooperation (SDC) are largely complementary. Budgetary assistance forms part of the package of measures to implement the framework credit on financing economic and trade policy measures.

 

SOURCE

Switzerland – Ministry of Foreign Affairs

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What Is Needed for Sustainable Energy for Africa?

Posted on 09 May 2013 by Africa Business

18 – 20 FEBRUARY 2014 | SANDTON CONVENTION CENTRE |

JOHANNESBURG SOUTH AFRICA | WWW.ENERGYINDABA.CO.ZA

AFRICA ENERGY INDABA APRIL 2013

What Is Needed for Sustainable Energy for Africa?

The African Development Bank is at the forefront of initiatives aimed at providing energy access, and providing energy availability to Africans.  The Bank’s Southern African Director; Dr Ebrahim Faal delivered a presentation at the 2013 Africa Energy Indaba in February 2013 along these lines.  He looked at Africa’s energy landscape and presented the topic, “Towards Providing Sustainable Energy in Africa”.  In this newsletter, we take a look at the important issues covered in his presentation.

While Africa has plenty of energy resources, its energy statistics are not good.  Eighty-percent of the world’s population without electricity lives in rural Sub-Saharan Africa where per capita consumption is only 124KW per year.  Ninety-three percent of Africa’s hydropower potential is untapped and less than 10% of Africa’s hydro-electric power potential has been exploited. Africa also has the highest solar irradiation in the world.

Access to energy is critical to economic growth and development, and is the key to the achievement of the Millenium Development Goals (MDGs).  While two thirds of African economies are expected to grow around 6.2% this year, which is still below the 7% needed to make a sizeable dent in poverty levels, it is nevertheless remarkable.   Greater access to energy is needed in order for economies to grow at levels beyond 6.2% up to 7%.  Sustainable economic growth in Africa can only be realised through greater provision of energy access and availability.  If MDG related targets are to be met by 2015, access to energy needs to rise from the present low levels of 27%, to 64%. Dr Faal identified a number of key initiatives that need to be done in order to ensure a supply of sustainable energy in the African continent. These included:

· Governments in Africa need to enact energy policies that will produce reforms in the energy sector with regard to cost reflective tariffs that support vulnerable customers.

· The promotion of regional integration through NEPAD.

· The private sector needs to play an increasing role in energy infrastructure development.

· International finance institutions need to mobilise financial support;

· Implementation partnerships need to be crafted across development partners, governments, regions, between South-South, and between public & private sectors in order to accelerate and upgrade Africa’s infrastructure delivery.

Current African Development Bank projects include the following outcomes:

· Distributing electricity solutions in a number of rural electrification projects in Burkina Faso, Guinea and DRC.

· Working within some low-income countries in scaling gap renewable energy within the framework of climate investment funds, plus within the UN’s ‘Co-generation for Africa’ project.

· Projects for improving grid infrastructure and supply efficiency in on-going regional transmission projects, in Sierra Leone, Cote d’Ivoire, Liberia, and Guinea, which will connect fragile states through to the other countries in the West Africa Power Pool and lay the foundation of leveraging the HEP potential of Guinea.

· Facilitation work that includes institutional capacity building and development of policy and regulatory frameworks for enhanced regional collaboration.

· Involvement in large-scale renewable energy projects, for example Inga HEP project in the DRC, and concentrated solar power 500 MW plant in Morocco, as well as wind and energy projects.

· Engaging with clients in energy planning and policies; the ADB has a wealth of experience in advisory services, and as such provides guidance and support in issues such as reforming regulatory frameworks, improving governance and creating an enabling environment for private sector development

· Developing innovative financial instruments to meet specific African challenges. For example in 2011 established a SEF [Sustainable Energy Fund] for Africa that provides SME’s in the energy sector with project preparation grants and growth capital through private equity vehicles. Another innovative instrument in the pipeline is the mobilisation of additional finance from sources such as African Central Bank Reserves, African Pension Funds, the African Diaspora, and high net worth individuals on the continent.

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Year of the Artisan: Artisans needed to help grow the economy

Posted on 30 April 2013 by Africa Business

African Education Week to gather experts in Johannesburg in June

South Africa has a shortfall of about 40 000 skilled artisans and industries often have to import migrant workers at exorbitant costs.

In a recent speech, the South African Minister of Higher Education, Mr Blade Nzimande, quoted this figure when he opened a technical training academy in Cape Town.  Those involved in training artisans therefore rejoiced when Nzimande in March declared 2013 the Year of the Artisan.

“The Year of the Artisan is good news for the industry because we need to seriously focus on training people for the trades,” says Mr Sam Zungu, principal of the Umfolozi College, an institution for further education and training (FET) with five campuses in KwaZulu-Natal.

“Young people need to be made aware of the great need for skilled people. This country needs artisans across the board in fields such as electricity, plumbing, fitting and turning and mechanisation. The biggest need is in the energy sector where we need skilled people to maintain and build infrastructure.”

He continues:  “Eskom is battling and new power plants are being erected.  But we do not have a big enough pool of skilled people to draw from locally for these projects. We are moving towards the same situation as before 2010 when the country had to import artisans to work on the stadiums and infrastructure needed for the Soccer World Cup.”

The Year of the Artisan dovetails neatly with the South African government’s National Development Plan (NDP). This plan focuses on reducing poverty and inequality by 2013 and crucial to attaining to these goals is the stated aim of training at least 30 000 qualified artisans annually.

African Education Week
Sam Zungu is chairing a panel discussion on the future of FET Colleges during the upcoming African Education Week at the Sandton Convention Centre in Johannesburg from 19-22 June.

He explains that while artisans can earn quite high salaries, there is still a stigma attached to the trades which also impacts negatively on how the Further Education and Training (FET) colleges are viewed.

“We need to change perceptions and we need to create an awareness of the opportunities for artisans.  There are many opportunities for skilled people to become entrepreneurs thus creating work opportunities for others.”

South Africa needs specialist artisans
Another speaker at African Education Week, Wilson Nzimande, head of Imithente, an education and business consultancy, cautions that South Africa needs specialist artisans – amongst others in the maritime fields. Over 90% of South African trade takes place via the oceans.

“Many people want to train as, for example, general electricians or mechanics. But we need specialists – we need divers who can do specialist welding and painting underwater and we need ship building specialists.  In many fields South Africa relies on foreigners and this is not an acceptable strategy.  We need to develop artisans because they are incredibly important in helping to grow developing countries economically.”

He emphasises that strategic partnerships need to be formed between training institutions, government and the private sector.

“In this Year of the Artisan we need more than just words and rallies. We need a particular programme of action. This means that government should do more to structure incentive mechanisms to the benefit of all parties.”

Too much emphasis on university degree
Horst Weinert, managing director of Festo Didactics, says there is concern that the average age of South African artisans is 50.

“These people will soon be retiring and there will be few to take their place if we do not train enough people to fill their shoes.”

University educated Weinert believes there is too much emphasis on a university degree:  “there are about 800 000 university students and 600 000 students at universities of technology and only between 100 000 and 200 000 at FET colleges. This pyramid is the wrong way around. We need more enrolments at FET colleges.”

According to Weinert, artisans can demand monthly salaries of up to R50 000 and more.

“Highly skilled artisans are in short supply and those who can deliver the goods can basically determine their own salaries.”

His advice to people who are set on obtaining a university degree in fields such as engineering is to enrol at an FET college for at least one year.

“This practical training obtained at a FET college will enable the student to fly through university.”

Although the trades are dominated by men, Weinert says there are many opportunities for women in field such as fitting and turning, instrumentation mechanisation and mechatronics – a multidisciplinary field of engineering which combines mechanical, control, electrical and computer engineering.

“I am a huge supporter of competitions like WorldSkills International (previously known as the Skills Olympics). There top artisans from different countries compete against each other. These competitions set benchmarks. The winners are highly regarded and others look up to them as leaders and innovators in their field.  This can act as inspiration for young people to train as artisans. When magic is created productivity is boosted and this in turn boosts the economy,” says Weinert.

Highlights from African Education Week
The African Education Week Convention and Learning Expo is the meeting and trading platform for everyone who is passionate about improving the standard of education in Africa.  Now in its 7th year, it remains the continent’s leading educational resources and training event, attracting more education professionals than any other event.  The co-located Career Indaba attracted m
ore than 4000 learners last year.  The expo aims to bridge the gap for students between studying and entering the world of work.

Highlights of the African Education Week programme on Further and Higher Education:

· Panel discussion:  The turnaround strategy for FET Colleges:  Creating institutions of choice

o Chairperson and panelist:  Sam Zungu, CEO, Umfolozi College, South Africa

o Panelist:  Dan Nkosi, CEO, South West College, South Africa

o Panelist:  Wilson Nzimande, CEO, Imethente, South Africa

· Panel discussion:  Strategies to equip learners with the skills to build their own future in tomorrow’s world

o Chairperson:  Amanda van der Vyver, Centre for Prospective Students, University of Stellenbosch, South Africa

o Do we equip learners for the workplace? The solution to take education to the next level
Elaine van Rensburg, MD, Compass Academy of Learning, South Africa

o Developing an extended curicula for NCV L2
Gert Hanekom, Manager, Centre for Teaching and Learning, University of the Free State, South Africa

o Aligning courses with the needs of the workplace
Mziwakhe Ramos Sibuqashe, Centre for Curriculum Development, Central University of Technology, Free State, South Africa

o Entrepreneurship Education in Secondary Schools in Mauritius
Dr Sheik Abbass, Lecturer, Business Education Department, Mauritius Institute of Education, Mauritius

Event dates:
Wednesday, 19 June 2013: Preconference workshops
Thursday, 20 June 2013:  Opening keynote session, Learning Expo opens
Friday, 21 June 2013: Conference sessions, Learning Expo open
Saturday, 22 June 2013: Learning Expo open, Post conference workshops

Location: Sandton Convention Centre, South Africa
Websites: www.educationweek.co.za ; www.careerindaba.co.za

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60 African countries to participate in the AIM 2013

Posted on 27 April 2013 by Africa Business

Dubai, an inspiring city for African countries in their policies, strategies and sustainable development

African countries look to attract investments in infrastructure, agriculture, energy, mining and tourism during their participation

Victoire Ndikumana Ministry of Trade, Industry, Posts and Tourism in Burundi: AIM is important platform to promote investment opportunities in our country

Gorden Moyo, Minister of State Enterprises and Parastatals in Zimbabwe: AIM brings investors from all over the world and government representatives to interact and discuss investment opportunities

Hon Minister Kebba S Touray - Gambia

 

Kebba S. Touray, Minister of Trade, Regional Integration & Employment in Gambia: AIM is great opportunity and platform for strategic networking, establishing partnerships, promotion and learning best practices

Dubai, United Arab Emirates

The African countries sees Dubai as an inspiring city for them in their policies, strategies and sustainable development plans. 60 African countries will participate in the 3rd Edition of Annual Investment Meeting (AIM 2013). The AIM runs between April 30 & May 2 and is held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. It is set to attract more investments to the UAE, region and enhance investment flows internationally and specially towards Africa that need FDI flows to achieve sustainable development in sectors like infrastructure, energy, agriculture, mining, tourism and many others given the attractive Return on Investment levels in Africa compared to other continents.

Victoire Ndikumana Minister of Trade, Industry, Posts and Tourism in Burundi described the AIM as a global event focused on Foreign Direct Investment (FDI). AIM 2013 will be of great importance for Burundi because it provides representatives from the private and public sector an exclusive environment to establish MOUs and exchange views on the importance of multilateral trade agreements, economic governance and strategic cooperation with economic operators in the world in general and the UAE in particular.

Ndikumana said the Burundi looks forward to exchanging with the authorities of the United Arab Emirates and other countries represented at the AIM to learn about their regulation of FDI, the strengths and opportunities of investment offered by their country and then see how to improve trade with them.

We will present foreign investors with the progress made by our country in the promotion of trade and investment and we invite them to visit Burundi in order to assess for themselves the business environment in Burundi, says the Minister. Burundi delegation will present a number of projects for partners and investors. We hope that Burundian businessmen who are participating in this conference will conclude partnership with foreign investors present here, she noted.

The Minister of Trade, Industry, Posts and Tourism in Burundi said trade and investment between Burundi and the United Arab Emirates are doing well. Burundi has many investment opportunities which may be the subject of cooperation between the United Arab Emirates and Burundi. These opportunities include agriculture, livestock and fisheries, fruit, flowers, cereals, oilseeds (oil palm), enhancement of coffee and tea production. She also highlighted the possibilities of hydroelectricity, renewable energy and industrial fishing on Lake Tanganyika, extraction and processing mining: nickel, gold, coltan. Beach tourism and water sports on Lake Tanganyika, development of housing, public buildings, hotel and lodges, marine transportation on Lake Tanganyika and development of infrastructures such as roads, railways, airports, marina and sports are among the major opportunities available in Burundi, according to Ndikumana.

About supporting UAE’s bid to host Expo 2020 in Dubai, the minister noted that a team of experts is analyzing all the bids, and we are waiting for their reports. The government will then take a decision in due time.

Speaking about historical background, she said that Burundi has experienced many years of war and after many years of crisis, Burundians negotiated and signed a peace agreement in August 2000. Currently, peace and stability have been restored and Burundians are rebuilding their country. The authorities of the country are striving for social reconstruction and economic development.

The main challenges the Government of Burundi now faces is the fight against poverty and unemployment, the energy deficit, transport infrastructures low cost like railway, limited access to finance for small and medium enterprises. However, all these challenges are opportunities for investment.

The Government of Burundi has made many reforms to improve the business climate. That is why the country has been ranked as one of the top ten reformers in the 2012 and 2013 Doing Business reports of the World Bank. We welcome all potential investors. We promise that they will enjoy to invest in our country, the minister noted.

The Minister noted that the trade and investment between Burundi and UAE has developed over the past years and many businessmen and women from Burundi regularly visit the United Arab Emirates and specifically Dubai to make purchases of goods and services. In recent years, import from United Arab Emirates have improved strongly from $ 13.7 million in 2008 to $ 32.6 million in 2011, before falling to $ 27.6 in 2012. Burundi’s imports from United Arab Emirates consist primarily of vehicles, rice, flour, fiber fabrics, clothing, carpets, tubes, pipes, wooden furniture, powdered milk, oil, juice, panels, paper and cardboard. Exports to United Arab Emirates are made of gold in the state raw, hides and skins. The UAE’s share in Burundi’s exports has strongly increased from virtually nothing in 2003 to 13% of total exports in 2010. This increase largely reflects gold exports, Ndikumana concluded.

Gorden Moyo, Minister of State Enterprises and Parastatals in Zimbabwe said AIM is an important event in the investment arena as it brings investors from all over the world and government representatives to interact and discuss investment opportunities with the aim of achieving a win-win situation. It also provides opportunities for governments to exhibit information, market their investment opportunities and at the same time learn from current international best practices in investment promotion strategies. The event provides a networking platform and it brings together participants with broader knowledge and appreciation of the importance of FDI in economic development which is important for fruitful dialogue. Dubai is viewed as one of the wonders of the world in terms of investment focus, friendly investment environment and business climates. It provides a location for focused collaboration and sharing of information on the realities and challenges of future beneficiaries.

The Minister will be presenting investment opportunities in SEPs in Zimbabwe in the Agricultural, Energy & Financial Sectors. During AIM, the delegation of Zimbabwe will provide an opportunity to strengthen the trade and investment ties with UAE and the GCC Countries. The Minister’s aim is also to market the investment opportunities in the public enterprises reforms being undertaken in Zimbabwe as the country is looking for strategic investors for two banks namely POSB and Agribank. The country is also looking for investors for the Hydro Power Generating project at Hwange Power station at a cost of US$2.1 billion and the Gairezi Mini Hydro station at a cost of US$90 million.

The Minister will explore possible Lines of Credit for our State Enterprises and Parastatals in Zimbabwe as they are rehabilitating their infrastructures and building new projects. Signing of any Memorandum of Understanding with potential Strategic and Joint Venture Partners is a major priority in this important event. He noted that the emphasis at AIM should be at matchmaking major projects with possible financers or investors. The challenges faced by most countries are to market their abundant investment opportunities especially in developing countries. As the opportunities unfold it is important that information is disseminated to possible investors at the right time. A follow-up report should be produced to appraise the participants of the deals and business contracts established during AIM, says Gorden Moyo.

Kebba S. Touray, Minister of Trade, Regional Integration & Employment in Gambia emphasizes that AIM presents a great opportunity and platform for strategic networking, establishing partnerships, promotion and learning best practices on international policies and strategies for FDI attraction and boost in trade for sustainable growth.

Minister Touray said Dubai is one of the greatest hubs in terms of investment, trade and finance in the world. It is a city that inspires hope and confidence and a demonstration that with the right policies, strategies and dedication, we can all achieve sustainable growth and development for our people.

The Gambia delegation will be promoting both public and private sector projects. Projects from the Government of the Gambia and Public Enterprises: Railway, Business Park Development and Management, Airport City ,tourism and real estate development according to the Minister along with projects from the private sector including Agro processing, Fisheries and ICT.

About their agenda in Dubai, the Minister of Trade, Regional Integration & Employment in Gambia noted thy will discuss strategic networking both at the bilateral, regional and multilateral level to promote our national development aspirations. Also they will exchange of visions , strategies and experiences with leaders from governments, private sector and multilateral institutions to enhance our policies and strategies to boost trade and investment in Gambia and our region. Other objectives during the AIM will be promoting Gambia as one of the best locations for investment in Africa and to promote projects from the government and private sector to individual and institutional investors and financiers along with establishing/strengthening strategic alliances and partnerships.

AIM provides an excellent forum and platform to generate new ideas, enhance international policies and strategies, broker deals and establish strategic partnerships to reignite growth in the global economy through greater investment and trade with emerging and developing countries, says the Gambian Minister.

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