"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
PRESENTS
COMMISSION FOR AFRICA
ALGIERS - ALGERIA WORKSHOP
30 NOVEMBER - 01 DECEMBER 2004
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Consultation Document for Comment from the Algiers Business Round Table
Introduction
Participants thanked the Commission for consulting with the African private sector. The Commission is seen as a good opportunity to strengthen support for the African Union and the New Partnership for Africa’s Development (NEPAD), which are the framework for the continent’s development, although they are still in process of being decentralised and brought to the people.
Africa is on the move. Many governments are improving their performance in managing the economy, which remains their proper role. There is evidence of improvements in the governance environment, and shift the balance of economic activity towards a greater role for the private sector, including new approaches to investment promotion, and support for upgrading the capacities of the private sector.
Findings
The image of Africa lags behind the reality, and the real face of the continent is hidden behind stereotypes. The Commission should help Africa to forge a global vision, shared within and outside Africa, and a better understanding of how the NEPAD strategy creates a comprehensive platform for improved governance and economic reforms.
..........The meeting recommended:
The position of the private sector is changing rapidly, and its pivotal role is being recognised. But the private sector is still young.
..........The G8 governments could help strengthen the emerging private sector’s role:
The interrelationship between improved market access and trade reform, tackling the effect of poor infrastructure on competitiveness, and financial flows is fundamental. Each is critical to improved growth; as is the strengthening of private-public partnership.
..........The meeting recommended action in three areas:
Incentivising Development - Infrastructure Development and Markets
Tackling poor infrastructure is an area requiring support from the G8 countries, as the capital investments required are huge, and the timescale long. Aid and financial flows can also be targeted to improving the efficient operation of markets and improving competitiveness.
..........The meeting recommended that the Commission consider:
Trade
..........The Commission should press G8 to speed up the implementation of the Doha Round. It is crucial that G8 countries dismantle the subsidies which distort the agricultural prices, which have significantly harmed African farm incomes, especially in cotton, soya and other crops.
Governance
Corruption is a global phenomenon.
..........The meeting asked the Commission to recommend tighter multilateral mechanisms to enforce anticorruption, the tracing of illicit funds, and punishing both the briber and the bribed. The meeting welcomes the NEPAD strategy to combat corruption, and urged all African governments and citizens to support measures to establish more transparent systems, with less red tape.
..........The private sector needs to do more to improve its own performance. As the private sector is seen as a driver of economic development, support for improved corporate governance standards in the private sector should form a part of joint efforts by the G8 and Africa.
The reform of international organisations, including the IMF and World Bank, to make them more inclusive of developing countries’ interests would make them more effective, should be supported by the Commission.
The participants asked the Commission to encourage the G8 to continue to engage with and support Africans to address threat to their security – peace, stability, environmental protection (including deforestation) and the health of the population (HIV/AIDS, TB, Malaria).
In conclusion, participants thanked the Honourable Minister Messahel, Minister Delegate for the Magreb and African Affairs, and the Honourable Minister Hamlaoui, Minister Delegate for Participation and the Promotion of Investments for opening the meeting, and Mr Mohammed Chami, President of the Algerian Chamber of Commerce, for chairing the sessions.
Algiers
1st December 2004
The Commission for Africa is an independent international commission set up by the United Kingdom to examine how the international community can do more to support Africa’s development.
The Algiers Roundtable with business and private sector leaders, including chambers of commerce and employers’ organisations, was one of five regional consultations in Africa convened by the Commission for Africa and CBC. It provided an opportunity to make input to the recommendations of the Comission, and through the Commission to the G8/EU and other international bodies, on how to accelerate development, including meeting the Millennium Development Goals (MDGs) in Africa.
It is critical for the Commission to underline the importance of the G8 and EU implementing existing commitments trade reform, meet UN targets on official aid, and help to boost Africa’s share of private investment beyond the current low levels of 1%.
· The G8 Action Plan for Africa as already agreed should be vigorously implemented.
· The Commission should address imaginative ways to deliver better and more accurate information about Africa. The meeting recommended that this should include support for new linkages between northern and southern civil society, business and professional structures to create an accurate picture of the continent. The Commission can help persuade potential investors to look again, and fund practical ways to utilise the skills and resources of the large African diaspora communities in Europe and North America.
· in developing its policy role as a partner with government
· setting up new financing mechanisms which are more accessible, and suited to all level of the private sector – large, medium and small.
· Supporting new structures involving African and international business to help to a improve dialogue with government at the national level.
Ø Incentivising Development - Infrastructure Development and Markets
Ø Governance/transparency
Ø Trade
The focus of the G8 should be on finding mechanisms which create incentives to improve investment and trade.
· Using debt “reconversion” to mitigate risk, and compensate for the effect of country risk grading on infrastructure investment. This is required to tackle the backlog in infrastructure by creating a better platform for public-private partnerships which will introduce the required technical and managerial capacity to improve infrastructure, in areas including transport, energy and communications infrastructure. Boosting financial investment in upgrading infrastructure will benefit all enterprises – from the North and South.
· The international institutions could play a part in providing funds to public-private infrastructure schemes (e.g. Build Operate and Transfer - BOT) in which the private sector – national and international – is a manager. Funding should also address sustainability of the infrastructure which requires the development of national capacity.
· Improving the investment climate, backing specific initiatives which enable the private sector to remove obstacles to doing business.
· New financing mechanisms to address weaknesses of banking system to assist the banking sector by enabling it to meet international standards, and particularly improving access to finance for the SME sector. The reform of financial systems will take time, and the international community could help finance guarantee funds and lending mechanisms for the small and medium enterprise sector which is the backbone of the economy, but often unable to access credit.
· Support for policies which expand participation in the economy, spreading management to include private operators, civil society, unions etc, through privatisation, public-private partnerships and commercialisation of state enterprises.
· Trade promotion, and training and technical development, including for women entrepreneurs. The development of capacity and technical skills is required to improve productivity and efficiency, and there is need for special institutional programmes to provide training and advice to the SME sector to enable operators to graduate to the formal economy. The meeting also asked the Commission to consider supporting an African University for Information and Communications Technology (ICT).
The concerns of Africa on trade are not being given proper consideration. Growth is being damaged by slow dismantling trade barriers affecting Africa.
The continent is moving rapidly to improve governance, but tackling corruption and making justice a reality remain huge challenges, and are vital to the chances of meeting economic development goals. The meeting endorsed the efforts of African governments to place good governance at the heart of the new development strategy through the APRM.
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