April 15, 2002
Hundreds of business executives from Africa, Europe, America and further afield, squeezed into the main conference centre on Monday in the Senegalese capital, Dakar, to hear about possible commercial opportunities and to acquaint themselves with Nepad, the New Partnership for Africa's Development.
They are attending a two-day summit (15-17 April) on the financing of Nepad, hosted by the Senegalese President, Abdoulaye Wade. Wade is one of the main architects of the new and much-trumpeted development plan for Africa.
"Partnership with Africa, yes!" was the mantra repeated by speaker after speaker from the international private sector; But with warm encouragement came the warnings, that Africa must create the right, investor-friendly climate for international investment.
There was loud applause after a passionate speech by Frank Savage, the managing general partner of the $350m United States-based Africa Millennium Fund, sponsored by the Overseas Private Investment Corporation, OPIC. The investment fund focuses on private equity infrastructure projects in sub-Saharan Africa and receives a quarter of its financing from the private sector, with the rest guaranteed by the US government.
Savage is also a leading African-American businessman, a savvy Africa-hand and CEO of Savage Holdings, a US investment house. Addressing a conference hall full of the African elite and Nepad enthusiasts, he put it this way: "There has been much anticipation about this meeting and the overwhelming attendance of over 800 (delegates) says loudly to the world: Nepad has arrived!"
Savage called on the private sector to take the lead in creating businesses which could "generate jobs and enhance wealth-building amongst your people."
He praised "enlightened" African leaders who he said were determined to "unlock the vast potential of their people" with a "bold, challenging, comprehensive, eminently achievable and do-able African-made plan to improve the quality of life of your people and further integrate your economies into the global economy" and guarantee peace and stability.
Savage repeated that, in the list of top priorities, good governance, including "transparency, economic liberty and the promotion of the private sector as the driver of economic growth" in Africa would ensure more investment from outside the continent, because this sent a "clear signal to the global investor community of Africa's commitment - to create a positive economic, political and legal environment and let the private sector build a vibrant business sector".
But again, there was a warning as he entreated "centrally controlled economies in Africa to lessen the reins," acknowledging: "we know it's hard, but it is essential." While lauding an African-inspired continental regeneration project, Savage said international investors were waiting to see its successful and concrete implementation.
"Make no mistake about it, absent such an (investor-friendly) environment, foreign capital will flow to more receptive regions, depriving Africa of this essential source of capital. Investors seek good returns, but only in countries which they consider investor-friendly. Post-September 11, investors have become even more risk-averse, making competition for capital more intense," concluded the American businessman.
Stephen Hayes, president of the Corporate Council on Africa, CCA, which, he said, represented 80% of American private direct investment in Africa, told the gathering that the continent was a significant potential international market, if Africa took its destiny into its own hands. "Your success is our success," said Hayes.
A wide range of enterprises make up the membership of the CCA - from giant companies, such as Exxon Mobil, which is already active in Africa, to small one-man enterprises. Hayes said Africa must also make its case in international financial powerhouses, such as Wall Street, and proposed meetings between African financiers and the New York stock exchange.
Quoting the Corporate Council on Africa's chairman, James Harmon, the CCA president added that the bridge to the financial world was the biggest human resource gap, and that "Africa was all but absent in the major financial centres of the world. If Africa is to compete successfully for capital, then it must make its case to Wall Street and build long-term relationships with New York, London, Frankfurt and Tokyo banks. The CCA is ready to help you bridge that gap," said Hayes.
The former French cooperation minister, Michel Roussin, who has since joined the private sector, underlined the wait-and-see attitude of foreign investors, repeating that business interests needed the assurance of a stable economic climate in Africa.
Roussin said he and others were keen to see partnerships between the private and public sectors to ensure lasting development, which the Frenchmen said was the wish of all Africans. He called on the private sector in Africa to become more involved and for donors to be better coordinated.
Umberto Paolucci, a vice-president of the leading computer software company, Microsoft, seemed to reflect the feelings of many in the conference hall, in his speech at the opening of the Nepad summit in Dakar, with the words "When many people are dreaming the same dream together, the dream will certainly come true."
From the African viewpoint, Amara Essy, the secretary-general of the Organisation of African Unity, OAU, seemed to hit a raw nerve when he said that the continent could no longer accept "humiliation", implying that Africa's potential global economic isolation must end.
But, added Africa's top diplomat, it was up to Africans to ensure peace and security and the right conditions for foreigners to make lasting partnerships with the continent.
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