"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
PRESENTS
COMMISSION FOR AFRICA
DAR ES SALAAM - TANZANIA WORKSHOP
21-22 NOVEMBER 2004
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Statement from the Dar es Sallam Business Round Table
The meeting emphasised to the Commission the importance of the long term framework for tackling Africa’s development, which is provided by the AU and NEPAD, to all international support for Africa. This strategy underlines the importance of a strong, private sector led growth strategy.
The Commission for Africa needs to address the question, how can it help put Africa squarely on the map of the G8 over the longer term, and help the private sector to play its role in creating growth?
Building Capacity
The theme of capacity runs throughout the recommendations - more than just education and training, but building better capacity of stakeholders to work together – a changed culture of work and doing business in and with government, and better leadership, learning and management skills. The lack of sufficient skills in government is a very major constraint.
..........The meeting recommends an increase in G8 funding for existing institutions dealing with capacity, and for the private sector in African and G8 countries to set up staff exchange schemes to help government.
..........The G8 should prioritise this area, and set up a leadership scholarship scheme to support exchange programmes and attachments between the private sector and government.
Trade Development
..........The meeting recommends:
The development of trade needs to prioritise agriculture which offers the best opportunity to create rapid increases in living standards for the majority. Large scale commercial agriculture, as well as small scale farming need urgent attention, which will be aided by building up rural infrastructure and small business development.
One area which the international community could examine is a way to provide finance at affordable rates (4% in real terms) for this sector, which will be aided by cancelling the huge debt burden that contributes to crowding out commercial lending at affordable rates.
..........The meeting recommended the creation of an African Agricultural Development Fund to supplement IFAD’s role in supporting rural development.
Improving the Investment Climate
..........To create a better environment for doing business the meeting recommends:
Infrastructure
..........The meeting recommended that the G8 and AU encourage the adoption of similar Investment Codes of Conduct in other economic sectors.
Infrastructure Development
The key is a private sector led effort to turn identified needs into bankable projects
..........The meeting recommends:
Governance
Tackling corruption is not an easy task. Everyone has to take responsibility for improving the defences against corruption, and there is a need for the private sector and government to work better to simplify administrative systems. They should be clear and unambiguous – removing the scope for discretion of officials, introducing e-government, and stronger judicial systems.
The penalties for foreign companies and individuals who pay bribes should include custodial sentences, and delisting and barring of the companies from doing further business.
What can each role player do?
..........The private sector needs:
..........Governments:
· The G8 should agree to set up, with African governments, an international framework to prosecute bribers and the bribed, and track and return illicit funds to Africa. The new financial intelligence systems set up to combat terrorism and money laundering can be used to support this framework
· Improved economic and political governance, including transparency in reporting the sue of public funds are required, and adoption of NEPAD/OECD principles of good governance are vital. The G8 should discriminate in favour of countries which apply the APRM mechanism and the principles of good political and economic governance.
In closing, participants expressed special thanks to Mr Reginald Mengi, Chairman, IPP Tanzania and CBC Board Member for hosting the meeting and making the local arrangements.
Dar es Salaam
22nd November 2004
The private sector and governments in Africa need to improve dialogue and policy-making, and, critically, the implementation of agreed policies. It is vital to get beyond the rhetoric of cooperation into practical exchange. This will require a change in mind-sets, improved leadership capacity, and a bigger effort by the private sector itself to make inputs to government. Government needs to pay more attention to the views private sector.
Structural constraints on trade require a special action programme for Africa. Trade is retarded both by limited access to major markets, and supply-side constraints which harm competitiveness, and weaken product quality, technology transfer, and marketing. Infrastructure and access to finance (including debt burdens) are also critical macro factors.
· Acceptance and implementation by the G8 of market access for all African products.
· Interim arrangements including a preferential trade arrangement for Africa, while the WTO negotiations progress. The AGOA and EBA initiatives are a good start, but need to be built upon if locally-owned business is to develop in a sustainable way.
· that G8 pledges of support to tackle supply side constraints, as discussed at the Singapore trade round - but not acted on - are implemented immediately. Special attention should be given to assisting Africa to develop trade negotiation skills.
· Trade development programmes should address value-added industry, and export sectors.
Getting business regulation right, and cutting red tape are important to creating a climate of confidence for international and national investors alike.
The G8 support a campaign Discover Africa to provide more accurate information on trade and investment opportunities in Africa.
The development of African economic capacity will benefit from better arrangements for the development of natural resources. The meetings discussed the Kimberley process, which in the diamond industry provides an interesting basis for regulatory best practice.
There is a huge infrastructural deficit which is undermining competitiveness and stifling opportunity. The meeting endorsed the importance of the role of governments in setting the framework for infrastructure development, but delivery and expanded capital flows require new forms of public private partnership. It is up to governments and the private sector in Africa to create a new dynamic in which donor dependence is replaced by business logic in developing infrastructure. Greater attention should be given to strengthening the role of indigenous business in infrastructure development.
· The private sector to work with African governments to agree a policy and regulatory framework for infrastructure development, which also coordinates roll out of schemes, and transparent procurement rules
· The G8 should expand schemes to mitigate commercial, political and non-payment risks, and devote additional concessional funds to help infrastructure development. It should extend reforms to the Bretton Woods institutions to expand their role in infrastructure development, and the African Development Bank should be given a much greater funding capacity to lend to the infrastructure sector
· There should be direct funding from donors to the indigenous private sector to enable it to strengthen its role in increasing the domestic investment capacity.
Corruption is a global cancer, which has particularly severe consequences for Africa because so much of the stolen money ends up abroad, and because it has become a way of life, denying basic and social services to African citizens. Tackling it requires a common commitment to good governance and integrity, and to systems which increase the risks of corrupt practice.
· to make a big investment in improved corporate governance, particularly new schemes of peer evaluation. Such schemes, of which examples at a national level were cited, provide independent audited guarantees of good governance and commercial incentives to companies to join the club. They need to be extended and joined up.
· Pressure: to set up national working groups to monitor corruption, provide information, and recommend reform of procurement and administrative systems to government. The private sector needs to work with the media, and campaign for better economic and political governance.
· African leaders must lead, and create a climate in which corruption is tackled, not swept under the carpet. Political support to apply simplified administrative systems is vital, as is tackling the weakness of judicial systems
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