June 20, 2007––Cape Town, South Africa played host to the 17th annual World Economic Forum on Africa last week with the focus on building capacity for success. This year’s conference theme, “Raising the Bar,” underscored the objective of the meeting––to tackle issues such as investment, infrastructure, energy, governance, skills development, malaria and other health issues, urbanization, and climate change. The conference provided an excellent networking opportunity, as it brought together diverse players from the continent as well as other countries––800 participants from 42 countries in all. The convention center buzzed with activity as delegates rushed to their panel discussions or media conferences, pausing for informal hallway discussions. Others held bilateral meetings on the sidelines, while enterprising journalists used the opportunity to conduct interviews and grab quick quotes and sound bites for their reports.  | Senegalese President Wade, right, with South African businessman Tokyo Sexwale, left (moderator in middle) |
Representatives and experts from governments, business, international organizations and civil society focused on leveraging Africa’s increasingly strategic role in the global arena. Many used the forum to commend the continent’s economic growth—while noting challenges that remain. Africa as an Investment Destination Among those participating in the event was World Bank Vice President for the African region Obiageli Ezekwesili. She stressed “the time for declarations is over, Africa wants action.” Ezekwesili participated in panel discussions, including the opening plenary where she joined South African President Thabo Mbeki, Senegalese President Abdoulaye Wade, South African businessman Tokyo Sexwale, and Cynthia Carroll, the CEO of the Anglo American Corporation. Ezekwesili noted that Africa is a more attractive investment destination, as governments pursue economic and political reforms that are boosting their economies. “Africa is beginning to do certain things right. The kind of sustained growth we’re seeing, where at least 36 percent of the population on the continent is living in economies that are growing around 5 percent, is an indication that the right policy choices are growing.” Ezekwesili noted it is more important than ever for the world to support Africa. “It is critical to support countries to make the right decisions and ensure they have the institutions and technical capacity to sustain growth. There are still huge areas that need reform.”  | South African President Thabo Mbeki, right, with forum founder Klaus Schwab at the opening plenary |
African Competitiveness Report Launched A highlight of the conference was the launch of the African Competitiveness Report 2007, the first report on the region’s business environment to leverage knowledge and expertise within the World Economic Forum, the World Bank, and the African Development Bank. The report concludes that African businesses can become far more competitive, but that African governments and their international partners will need to improve access to finance, rebuild infrastructure and strengthen institutions. World Bank Chief Economist for Africa John Page noted, “Africa can compete, but that competitiveness is not uniform.” The report also points to the growing number of success stories. It analyzes steps countries can take to improve aspects of their business environment, and highlights themes that will boost the prosperity of nations. It offers detailed assessments of the drivers of productivity and employment growth, including the rankings of 29 African countries in the Global Competitiveness Index.  | Africa Vice President Obiageli Ezekwesili, right, and forum participant Sean Cleary discuss growth |
The report looks at the competitiveness and investment climate in Africa’s four largest economies (South Africa, Algeria, Nigeria and Egypt), and the effect of gender disparities on employment and competitiveness. It also identifies the role of new technologies in fostering a more dynamic business environment. IFC Package for Mobile Networks The IFC announced its own deal during the conference—a $320 million package to five subsidiaries of Celtel International, to help expand and upgrade its fast growing mobile networks in the Democratic Republic of Congo, Madagascar, Malawi, Sierra Leone, and Uganda. The investment will result in better-quality mobile access in countries with extremely limited telephone services, creating new opportunities for businesses and consumers. The financing transaction, for the first time, takes the IFC’s annual investments in Africa over the $1 billion mark. Vision for the Future Klaus Schwab, Founder and Executive Chairman of the World Economic Forum noted: "The world needs Africa as much as Africa needs the world." He particularly underscored the importance of partnerships to address global issues affecting the continent, and emphasized the role of the forum to help cement these partnerships.  | Plenary networking |
Both Mbeki and Wade noted African countries should concentrate on building the capacity necessary to help their economies sustain the strong growth many of them have achieved in recent years. "Sustainable development requires human resources necessary to move a country forward," Wade said. He noted his country is a success story, partly because the government has allocated 40 percent of its budget to education and launched numerous infrastructure projects. Mbeki noted that everything Africa does must be linked to building the necessary capacity to take the continent away from poverty. “The future must be of a more prosperous and developed continent, one catching up with the rest of the world,” he said. All agreed that solutions need to be homegrown, and cannot be imposed from outside. For more on the World Economic Forum on Africa.
For more on the competitiveness report. |
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