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"MADE IN AFRICA - FOR AFRICA" FDA NEWSLETTER
MASS MAIL
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The FOUNDATION FOR THE DEVELOPMENT OF AFRICA proudly presents you with the following information that may add value to Africa's development. Please direct any correspondence to: info@isupportafrica.com
FDI - Foreign Direct Investment
I have also received an invitation and confirmed my attendance to the OECD Global Forum on International Investment (GFII) entitled Investment for Development: Forging Partnerships to take place in New Delhi, India, on 19-22 October 2004. The event will be hosted by the Government of India and supported by the Confederation of Indian Industry.
I will proudly represent the FDA and Africa!
We have listed a number of conferences and forums focusing on FDI and related FDI issues on our list of UPCOMING EVENTS SERVING AFRICA - please visit:
Please note that when I mentioned formal - this did not mean "black tie" - but formal as in "structured"
The theme for the evening will focus on HOW CAN I CONTRIBUTE TO FDI and will serve to promote service delivery and the role we can play in attracting FDI to Africa.
This FDA FORMAL NETWORKING FUNCTION will not only provide the opportunity to some interesting networking, we will also have the privilege to interact with a number of VIP's attending the official opening of BGOAF 2004 and will be party to the VIP walkabout of the BGOAF (Business Growth and Opportunities for Africa Forum) exhibits.
We would like to express our gratitude to GEDA - Gauteng Economic Development Agency for once again supporting this FDA FORMAL NETWORKING FUNCTION as a co-sponsor - we are in need of more sponsors for this very interesting in event - if you would like to receive maximum exposure as a sponsor please contact me urgently:
I have received a number of RSVP's and will be confirming these within the next day or two!
If you would like to attend this FDA FORMAL NETWORKING / BGOAF OFFICIAL OPENING FUNCTION your RSVP is essential - please note due to the nature of this event numbers will be limited and access only to registered guests!
We will once again transform this exhibition space into a 'Presentation Theater', with all the necessary electronic facilities (PowerPoint, Video, Overhead Projector) available - thanks to GEARHOUSE SOUTH AFRICA!
If you have a product, service or project that you would like to "present" then this is your chance. Presentations will be limited to a maximum of 15 minutes and may be repeated the following day.
A daily "programme of presentations" is available on our website see:
This "programme of presentations" will be included into the Exhibitors Catalogue and will be distributed to exhibitors and visitors daily. You may also invite potential clients/investors to your "presentation" session.
Although we have reserved time slots for our FDA Partners and BGOAF Exhibitors you are welcome to select a "reserved" time slot (if you are not a FDA Partner or a BGOAF Exhibitor) and see if you can twist my arm for inclusion!
We do have some interesting sponsorship opportunities available - if you would like to participate as a sponsor or as a presenter please contact us:
OUR FDA PARTNERS
http://www.fdapartners.net/com/logodisplaylist.htm
24 August 2004
I hope that you recall our brief introduction and discussion at the Invest
North West conference in Sun City, March 2004. I was a part of the Canadian
delegation from Manitoba, representing a consulting company LP LandPlan Inc.
During that conference I was able to meet various representatives of public
and private sectors of SA and sign several MOUs. Please visit our web site -
some photos may help your recollection.
Since that conference we followed-up on the proposed project initiatives,
trying to identify our respective roles and the most efficient financial
strategies for the implementation.
I've been receiving your frequent news briefs and find them quite
interesting and useful. Thank you for doing that.
This last communication raised a major question among my colleagues. We
understand that FDI became a hype amongst business community in South
Africa, but working in other African countries (Ghana, Uganda) we witnessed
and participated in various project initiatives that contributed greatly
into capacity building through alternative financing strategies.
I am referring specifically to lending of capital and equipment to the local
businesses through various financial programs from North America. The terms
of re-payment and all necessary technical assistance makes it quite
manageable and low-risk venture. The borrowing company is made aware that
the loan will be serviced by the profits of the business itself.
These programs are now focusing and making a great contribution to the
emerging business sector of the Post-Soviet East European countries.
As an alternative to the direct investment, these programs encourage and
Provide a greater sense and degree of ownership, help the local enterprises
To establish stable reputation with the financial institutions and,
Subsequently, develop continuity in financing as the business expands.
In addition, when the local company enters such program, all the training
in operation and maintenance of the equipment supplied under the program is
provided at no cost.
It is my understanding that the many short comings in business mentality of
failed enterprises are due to the lack of sense of entrepreneurship, risk
assessment and preparedness to accept and manage those risks. That's why
"aids" and "donations" could never contribute to the development of a
"business sector" and could only assist in disaster relief. On another hand,
a lot of control and ownership of resources and manufacturing industries was
lost to foreign entities through "Direct Investment". Development countries
resorted to nationalization to acquire those resources back.
In encouraging "FDI", let's not repeat the mistake of the 1980's which led
to Structural Adjustment Programs(SAPS).
Also, FDI spending has a tendency to minimize Capacity Building especially
in the crucial "Entrepreneurial class" that is so lacking because of the
colonial and various segregation policies.
There is a historical bias for FDI terms and conditions to emphasize
channelling funds into "Consuming sectors" like Public Administration,
Health and Education as opposed to "Tradable sectors" like Agriculture,
Manufacturing and Export oriented goods and services; End result, African
countries are still exporting raw materials or very basic value added goods
and services and their risk taking capabilities are still extremely low.
There are alternative financing channels that do encourage "Risk taking",
sound asset management skills, respect of property rights and lineage,
growth and entrepreneurial confidence.
Almost all G7 or G8 Countries have programs that do encourage entrepreneurs
who have or want to acquire the above Capacity building skills to borrow
directly from their export promotion programs. The qualification
requirements are more stringent which in itself is a bonus, because these
programs are designed to make the entrepreneur succeed rather than fail.
Such programs have done miracles in the Post-Soviet East European
countries. They have also been used very successfully in Ghana and Uganda.
LP LandPlan Inc. is very conversant with such plans, especially in North
America and we can help any interested Entrepreneur to access such programs
smoothly.
I just want to make sure that through the hype of "direct investment" other
valuable alternatives will not be ignored and overlooked.
In fact, a well-balanced financial strategy for a given community, region or
country will have a harmonized, well-tailored custom model based on the most
effective financial engineering of various lending, funding and investment
contributions.
This is our major principle for all the initiatives that we agree to pursue
and, hopefully, will be able to present some of the success stories right in
your home country very soon.
Please keep in touch
All the best
Larissa Panachenko, M.Arch., M.L.Arch., ***********************************
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