‘Money is important, we need tons of it’
AFRICA needs money — and lots of it — was the central message that echoed throughout the Cape Town International Convention Centre this week during the World Economic Forum on Africa.
The three days of meetings, debates and workshops were succinctly wrapped up by the president of the African Development Bank, Donald Kaberuka, during a debate on Friday when he declared: “Money is important, we need tons of it.”
The conference attracted a star-studded list of speakers — President Jacob Zuma, billionaire Patrice Motsepe, former UK prime minister Gordon Brown, Barclays CEO Antony Jenkins and any number of CEOs — and most of the sessions revolved around familiar topics.
These included why Africa needed money (infrastructure, health, education, job creation), where this cash was going to come from (international investors, developmental finance, private funders, government), where it was being lost (corruption, poor planning, power shortages), and how best to maximise it (“for heaven’s sake, remove all the barriers”, was Kaberuka’s advice).
There was plenty of talk about how to get economic growth up to the magical 5% mark, where unemployment begins to drop. Speaking on Friday, Finance Minister Nhlanhla Nene said such numbers were important, but growth needed to be sustainable.
Nene’s plea for further investment in Africa was somewhat derailed when he was questioned about corruption, and the widening scandal of whether South Africa paid a $10-million bribe to secure the right to host the 2010 soccer World Cup.
He reacted stoically: “If we don’t deal with corruption, all our noble plans that are on the table will not be fulfilled to the optimum.” He said local authorities would have to investigate the Fifa allegations once all the information was available.
Patrick Dlamini, the CEO of the Development Bank of Southern Africa, spoke about the sort of “resolute political leadership” that had allowed China to become a global economic powerhouse and which, if adopted by African countries, could transform the continent.
This sort of leadership, when combined with the continent’s startling GDP growth (which has expanded from $500-billion, combined, during the ’90s to $2.7-trillion today), would make for “a completely different Africa”, he said.
Zuma, who addressed the conference as the Fifa corruption claims reached their height, said this was Africa’s moment. “Any wise investor will realise this is the moment to invest in the continent,” he said.
As always with the WEF, the question was whether the grandiose statements of intent by politicians and CEOs would translate into anything on the ground.
Organisers say “record numbers” of women and young people were involved in the conference this year, but its official fact sheet lists just 270 women and 100 young “leaders”.
Judging by the number of selfies taken, and the constant scroll of tweets on the TV screens, generations X and Y were definitely in attendance, but the plenaries were still dominated by men despite a focus on issues affecting women.
But for a conference about Africa, the only visual evidence of the 75 countries the delegates represented was the occasional African print, a riot of colour in an otherwise grey and blue sea of corporate attire, and the use of South African place names such as Tshwane and Mangaung to label the meeting rooms.
And in the greatest irony, some delegates from elsewhere in Africa would have to fly to Dubai from Cape Town before connecting back to countries such as Nigeria.
Inside the meeting rooms it was impossible to escape the inevitable recycling of issues that happens at any conference on Africa. Governance, corruption, the infrastructure funding deficit, perceived risk, power crises, political upheaval and disease headed the list of the usual suspects.
The conference, despite its long-winded and sunny title, did provide a shot of real-world wisdom from political leaders, captains of industry and innovative thinkers.
For example, Africa’s efforts at dealing with the Ebola crisis, while valiant, were viewed by Unilever CEO Paul Polman as “chaotic, late, unco-ordinated”.
Many of the speakers also pointed to the $50-billion (about R629-billion) needed every year to fill the “infrastructure gap” in Africa — by building roads, railways and harbours. However, it remains difficult to raise that funding in the face of the perceived risk associated with investing on the continent.
The WEF’s Africa Competitiveness Report, which was released at the event, warned that the continent’s prospects were under threat.
“Sustainable growth must be built on a solid foundation, and this means strong institutions, good infrastructure and targeted investments in health, education and skills,” said Caroline Galvan, WEF economist and co-author of the report.
Weaknesses on these points had led to stagnating productivity in the agricultural, manufacturing and services sector.
The report also points out that the benefits of more than a decade of consistently high growth rates have not yet trickled down to significant parts of the population, with nearly one in two Africans still living in extreme poverty.
Jenkins, who was the co- chairman of the conference, said that “over 80% of people in sub-Saharan Africa have no access to financial systems”. He said that when it came to competing on the global business stage, “there are no free rides any more”.
Makhtar Diop, the World Bank’s vice-president for Africa, said: “A lot of the conversations we have had here are the same conversations we’ve had with the Group of Eight countries.
“Africa is becoming a real part of the international dialogue on the economy.” — With AFP
Over 80% of people in subSaharan Africa have no access to financial systems