Abuja, Nigeria, 22 April 2002
ADDRESS BY DEPUTY PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA, DR JACOB ZUMA TO THE COMMONWEALTH BUSINESS COUNCIL AFRICA INVESTMENT FORUM
Your Excellency, the President of the Federal Republic of Nigeria,
Your Excellency the President of Senegal,
Ministers and Deputy Ministers present,
Members of the Diplomatic Corps,
Representatives of the Business Community,
Distinguished Participants,
Ladies and gentlemen,
It is an honour for me to interact with you today, as we ponder ways and means of achieving sustainable development for our continent.
Your Excellencies, let me begin by extending an apology from President Mbeki who was unable to attend this conference due to pressing commitments back home.
Ladies and gentlemen, there is a general understanding that government need to create an enabling environment for increased development, trade and foreign direct investment. At the same time, it is important to emphasise the role of the business sector and civil society in general towards achieving the continent's development goals.
I am therefore pleased to see the continuing interaction between government and the private sector from both Africa and beyond our continental borders. We need to encourage this culture of working together, particularly between government and civil society in Africa, as we ought to share this responsibility of rebuilding our continent.
Colleagues, the theme for this session has been appropriately chosen, as investments would provide a long-term solution to resource mobilization.
We are aware that for us to be able to achieve foreign direct investment flows, we need to create the enabling environment, and through the New Partnership for Africa's Development, (NEPAD), we are already moving in the right direction.
At a political level, African countries are aware of the need of embarking on programmes that are geared towards strengthening the democratic process, promoting good governance, observance and protection of human rights, ensuring the freedom of the media, and undertaking various institutional reforms to ensure the sustainability of these objectives.
Commitment in this regard is visible. The meeting of the Heads of State Implementation Committee of NEPAD held here in Abuja last month adopted a Draft Report on Good Governance and Democracy.
At the same meeting, a consensus emerged on the establishment of an African peer review mechanism, under the auspices of NEPAD's democracy and good governance initiative, to be designed and managed by Africans. Part of creating the right environment for investments also involves the imperative of eradicating conflicts in the continent and working towards lasting peace and stability.
Already, there are a few African peace initiatives in progress. These initiatives are already guided and informed by the new way of doing things in the continent.
The African Union, to be launched in South Africa in July this year, is also expected to play a critical role in strengthening the response of the continent to conflicts. The AU will among other things, be expected to institutionalise the response of the continent to activities by members, which go against the collective will and collective vision of the leaders of the continent.
Also on the agenda, is the need for the reform of, and the establishment of new institutions and building capacity in the continent.
The institutional reforms would need to include:
The motivation for improving economic governance stems from the need to build and enhance trust between government and potential investors and the need to ensure that the policy on which investment and private capital flows are dependent, is credible and predictable.
Distinguished guests, let me emphasise that NEPAD provides the business community with a number of tangible opportunities. NEPAD seeks to promote long-term conditions for development and security, thus making it safe to invest in Africa.
The challenge we currently face is how to change the perceptions of some local
and international investors that Africa is a "high risk" continent, especially with regard to the lack of security of property rights, weak regulatory frameworks and lack of properly developed markets.
To change perceptions, Africa needs to lower the risks to private investors, especially in the area of policy and regulatory frameworks.
Our strategies could include putting in place mitigation and risk reduction measures, implementation of public-private partnerships and promoting cross-border harmonisation and integration of the legal framework.
The establishment of a sound financial system within the continent is also critical, for Africa to be able to participate effectively in the world financial system. In addition, as the developing world, we need to continue to work towards the restructuring of the global financial architecture, in order to enable Africa to receive the required capital flows.
African leaders are already addressing the issue of good economic governance.
Last month's meeting of the Heads of States Implementation Committee reviewed the issue of economic and corporate governance in Africa.
This was done with a view to promote sound macro-economic and public financial management and accountability among members. The meeting approved eight draft Codes and Standards for Economic and Corporate Governance for Africa.
Your Excellencies, I would like to make an earnest appeal to the private sector to use the opportunity provided by NEPAD to invest in the continent, particularly in infrastructural development. This approach certainly guarantees long-term and sustainable investment in the continent.
The investment in infrastructure such as communications systems, road, rail and air links as well as water supplies will enhance regional co-operation and trade through expanded cross-border connectivity.
It is also our view, Your Excellencies that the African business sector should lead the way and show confidence by investing in the continent. We trust that this sector will soon take advantage of the vast opportunities that will become available.
It is imperative that we find ways of utilizing the limited resources in the continent prudently, to ensure maximum gain.
While it is proper for us to strengthen partnerships with our developed partners in the North, it is also important for us to ensure co-operation and the regional level as well. There are already successful initiatives within different regions.
For example, in the south, there is increasing co-operation between South Africa, Swaziland and Mozambique on tourism and spatial development initiatives.
Recently, South Africa and Swaziland launched the Maguga Dam in Swaziland.
Such co-operation and interdependence between African countries transcends boundaries, and informs the thinking behind NEPAD.
It has also impacted positively on the lives of people in the two countries, in the areas where it is situated.
Your Excellencies, distinguished participants, we are convinced that Africa offers many opportunities, and that the leaders of this continent are already leading the way in ensuring the creation of the right environment for the business sector to respond appropriately with investments and other forms of support.
Let me reiterate that we value the contribution of the private sector, civil society and all other sectors in the continent, in taking the NEPAD vision forward.
The partnership particularly between government and business should be nurtured and strengthened, for the common good of the peoples of this continent.
If we work together, we can make a difference to the lives of millions of the peoples of this continent.
I thank you.
Issued by: Office of the Deputy Presidency