Investment outlook for Africa is good as WEF meeting ends

FE Team | Published: June 17, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

CAPE TOWN, June 16 (AFP): The 17th World Economic Forum (WEF) on Africa closed in Cape Town yesterday with business delegations rubbing their hands in excitement at the scope for investing in the world's poorest continent.
Corporate executives left a three-day dialogue with African leaders and multi-national envoys, hailing opportunities presented by the continent's economic sprint, but stressing African states had to find their own way of sustaining growth.
"The clear overall message is extremely positive. There is optimism," said Malvinder Singh, chief executive of India's Ranbaxy Laboratories.
"Africa has huge opportunities for business, and a big market place."
And WEF head of Africa, Haiko Alfeld, said investors' perception of Africa was changing.
"The tone has changed ... from a kind of questioning: 'why invest in Africa, can Africa?' to one of: 'how do we invest in Africa, how do we get in there?"
On its first day, the forum heard Africa faced being left further behind as its economic growth rate, projected to reach 6.2 per cent this year from 5.5 per cent in 2006, failed to match those elsewhere in the world.
There was also discussion about human rights and governance concerns around Africa's growing economic ties with non-traditional trading partners like China, which grew at a rate of 10 per cent last year.
Speakers said the continent should welcome rather than fear the growing Asian hunger for its raw natural resources, but also work on selling finished products.
Asked about the benefit of increased trade for ordinary Africans, Singh said: "It is important for trickle-down to happen, but one also needs to be realistic as to how it will happen and the time-frame in which it will happen.
"If private enterprise is going to be engaged to drive that, it has to be economically viable."
Added Alfeld: "(Africa) needs to leverage the contribution of business in a systemic manner".
About 800 delegates took part in the forum to examine ways of boosting economic growth and trade for the continent.
The meeting also saw former UN chief Kofi Annan being tasked with leading a 150 million dollar drive to reverse the decline in farming in Africa, where some 200 million people suffer from hunger.