Speaking to the U.S.–Africa Infrastructure Conference in Washington on October 8, Simon called on his audience to help make Africa a no-conflict zone by 2020. The theme of the 2008 conference is “Connecting the Continent.”
Simon cited statistics and basic facts to tell what he called “the predominant story” about the developing continent of Africa.
Over the past 10 years the African continent has enjoyed an uninterrupted period of economic growth, with rates in the past five years exceeding 5 percent annually, he told his audience of business executives and potential investors. “Foreign investment has grown from $7 billion in 2002 to $53 billion last year — a more than sevenfold increase,” he said.
He cited a recent report by Credit Suisse First Boston that African countries compare very favorably in terms of governance, education and economic policies to East Asia in the 1970s, a time that was followed by its period of dramatic economic growth.
If Africa is to achieve similar results over the next decade, he said, several gaps still need to be addressed: peace and security — what he called the sine qua non for economic development; energy and infrastructure; and professional capacity and connections to the global economy.
“From my perspective, the African Union can and indeed must be a critical element in bridging these gaps if Africa is to recognize the potential it has by 2020. In many ways the next few years will be extraordinarily decisive,” he said.
Addressing the issue of peace and security, Simon, a former executive vice president of the U.S. Overseas Private Investment Corporation, said there is a lot of good news on this front. Speaker at podium (AP Images) Assistant Secretary of State Jendayi Frazer speaks with reporters at a recent meeting of the African Union.
“Relative to 10 years ago when more than a dozen conflicts raged across the continent, there are now basically three or four,” and those are among the most intractable. He saluted the AU for taking a lead role in seeking to stabilize and resolve those conflicts, but he cautioned that the AU cannot be expected to bear this full burden on its own.
“If Africa is to move forward in the next few years, the international community needs to do more,” Simon said. He called on his audience to work toward the goal of making Africa a no-conflict zone by 2020. “Ultimately,” he said, “it is the absence of conflict that is necessary for there to be the type of economic growth that Africa needs to realize if it is to achieve the very ambitious goals that it has for the development of its people.”
On energy and infrastructure, Simon said, “We have all seen the pictures of Africa from space at night: the only lights being visible are those in South Africa and a few that are scattered along the coasts.”
And almost everyone doing business in Africa has had trouble shipping containers overland, he said. The cost often exceeds what it would cost to ship that same container to Europe or the United States.
Simon called Africa’s shortage of energy and infrastructure a “brick wall” to development. But he acknowledged that progress is being made on a country-by-country basis, with governments putting in place the right environment that is encouraging investors to enter their markets.
What is needed, he said, is not only a large amount of investment capital but an equal amount of technical expertise. Institutions such as the African Development Bank, the Infrastructure Consortium for Africa and the African Union — through the creation of an investment bank — can play an important role in supporting progress, he said.
A new type of investor for Africa is also needed, he said, who will be satisfied earning traditional money profits as well as what he called developmental profits.
On the institutional capacity gap, Simon warned that “as African economies grow, the strains on their institutions — just like the strains on their infrastructure — can be a major impediment to growth.”
More diverse economies require more sophisticated institutions to issue permits, enforce contracts, resolve disputes and plan for growth, he said. Africa is the fastest-urbanizing continent in the world, yet urban planning in most African cities is nonexistent. The African Union, he said, can again play a key role in strengthening these institutions on the continent.
On Africa’s integration into the global economy, Simon said, “Connecting to the global economy is fundamental to Africa’s future,” and for that to happen requires “investing in entrepreneurship from all sources, the development of larger markets along regional lines, and the retention of its most gifted people.”
On a positive note, he said, many members of the African Diaspora are now returning to the continent “to build its economies … its businesses and … its institutions.”
Posts: 8804 | From: The fear of his majesty had entered their hearts, they were powerless | Registered: Nov 2007
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On a positive note, he said, many members of the African Diaspora are now returning to the continent “to build its economies … its businesses and … its institutions.”
^ Very true. Exciting times. Posts: 3423 | From: the jungle - when y'all stop playing games, call me. | Registered: Jul 2006
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I really enjoyed this article as it showed a positive take on Africa, and shows that maybe the West could work with Africa to build it up and improve the quality of life for the African people.
Posts: 8804 | From: The fear of his majesty had entered their hearts, they were powerless | Registered: Nov 2007
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A bunch of bogus PR double talk is what it is. This is nothing more than a forum for American multinationals to begin taking over large parts of the African industrial and construction sector and nothing else.
quote: Participants will:
• Obtain information on infrastructure development opportunities throughout Africa • Network with key African and U.S. private sector and government representatives, including investors, capitol market experts, infrastructure providers, and investment bankers • Explore new business opportunities by identifying specific growth areas and projects • Discover the latest financing options and instruments available • Meet potential partners
Plenary sessions & workshops will address:
• Public-private partnerships • Risk mitigation: financial, legal, and political • Project financing • Secure banking and data transmission • Joint ventures and strategic alliances • ICT infrastructure development • Ports and airports • Maritime security • Potable water • Safe skies and airport security • Roads, rail, and bridges • Logistics and distribution • Supply chains and food security • Energy, electric grids, lighting • Oil and Gas
Workshop panelists will include:
African ministers of telecommunication, infrastructure, and energy; decision makers from leading U.S. infrastructure and financial companies; multilateral development institutions such as the World Bank and the African Development Bank; and senior U.S. government officials. Most importantly, these sessions will include proven strategies and solutions for your company to succeed on the continent.
The speakers, sponsors and supporters of this conference are nothing more than those who have been benefiting from the conflicts in Africa for resources all along.
They are not going to help Africans develop THEIR OWN network of black African owned and controlled construction companies, stone quarries, cement manufacturers, paving suppliers, steel makers, steel rod manufacturers, pipe manufacturers, wire and cable manufacturers, heavy equipment distributors, stamped metal manufacturers/distributors, plastic/pvc pipe manufacturers/distributors, maintenance facilities, parts suppliers, truck body manufacturers, engine manufacturers, heavy equipment suppliers/distributors, generator manufacturers and so forth.
Any time there is an American sponsored initiative for Africa, there is always strings attached and in this case the strings are tied to American corporate and industrial interests. It is the same way African farmers are forced to destroy their OWN crops in order to receive American food aid.
Most of this construction is only really benefiting those foreign countries and investors, because foreign construction firms do most of teh work, meaning the money goes to THEM not the Afridcans and many times these companies use FOREIGN LABOR for the skilled HIGH PAYING jobs, while Africans get the less skilled, LOW PAYING jobs. This is all supported and sponsored by the various governments from which these companies originate, as key to THEIR economic progress. Yet Africans have NO African owned contstruction and development companies OF THEIR OWN and they ARE NOT promoting the expansion and development of THEIR OWN construction sector for THEIR OWN economies, which is BACKWARDS. So the majority of Africans STAY unskilled and WITHOUT the income that their SKILLS would provide for a better life, while foreigners continue to get rich. At the VERY LEAST the Africans SHOULD DEMAND that such construction projects use LOCAL African owned construction material suppliers, AFRICAN workers for SKILLED JOBS, TRAINING and LOCAL African contractors for various aspects of the work. ALL these other countries do it all the time. China won't allow foreigners to control their construction industry and take all the GOOD jobs, so why should Africans?
This just goes to show that African leaders of today are leaders in name only and are REALLY just junkies, flunkies and sell outs for Western and other foreign interests. They DO NOT stand up for THEIR OWN interests, while they DO stand up and defend EVERYONE ELSE'S interests.
quote: Boom time for African construction: Chinese and Arabs lead construction charge .... Foreign worker drawback
One major drawback with all of these projects is that the architects, engineers and other relevant experts usually come from outside Africa and are employed by foreign firms. In the case of many Chinese backed ventures, even some construction workers are brought in from China. South Africa may have a burgeoning building trade but it is vital that foreign firms work in partnership with African architects and builders to improve local standards where this is required. Otherwise the current pattern of a handful of "international quality" buildings surrounded by poorer quality constructions, which dominates many African city centres, will continue.
In Angola, for example, oil revenues and Chinese support are being used to build a variety of new structures but Chinese workers are often used even on small school or clinic projects, restricting the type of jobs available for the millions of unemployed and underemployed Angolans to security and catering positions. Even most materials used on such schemes are imported from Chinese factories, again preventing the benefits of such investment from trickling down through the rest of the economy.
The construction boom is yet another sign of improving economic fortunes for the world's poorest continent. There may be a variety of specific reasons behind all of these projects, from high commodity prices to Chinese interest in African resources, yet Africa's ongoing construction boom certainly is a vote of confidence in the continent's future.
This is what the Americans want to cash in on and it really isn't about helping Africans develop THEIR OWN capacity to develop and build THEIR OWN infrastructure, which IS the ONLY TRUE WAY to maintaining and improving African infrastructure and overall economic health in the long term
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