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ADDRESS TO NEPAD PROJECTS CONFERENCE
8th October 2007
Sandton Convention Centre, Johannesburg, South Africa
Dr Reuel Khoza
CHAIRMAN: AKA Capital / Nedbank Group / NEPAD Business
Foundation
Africa is open for business. We are set to leapfrog into the
21st Century, harnessing the latest technology, maximising
public/private partnerships and unleashing the almost untapped
potential of this great continent. And we are going to do it as
Africans, working together to find African solutions to African
challenges, because we have the ability and the will and because
it is time for the continent to pull itself up by its own
bootstraps. I believe that NEPAD and its partner the Nepad
Business Foundation, provide the strategies, policies and
mechanisms for us to do this - and do it effectively and well.
NEPAD has attracted more than its fair share of criticism in the
past, I know. Frequently, its philosophy has been unfairly
lumped with the idealistic, but unfortunately unfounded,
theories propounded by many African leaders in the past which
have all ended in failure. The world continues to view Africa
with scepticism and clings to the perception of the continent as
a basket case where poverty, political instability, disease and
corruption run rampant. In doing so, the world actually forgets
its own history, because no country, east or west, has ever
sprung into being fully formed in the space of a few months or
even years. All countries have evolved from pockets of cultures
which have struggled to find their identity, establishing the
rule of law, devising governments and hacking their way out of
the jungles of ignorance and oppression.
And I am here to tell you that we are well on the way to forging
a new African identity. NEPAD is one of our tools. "But where is
the proof?" you might ask. I have it right here. From the time
that African leaders felt that there had to be a programme of
action focusing on socio-economic development on the continent,
work has been underway. Such a programme is predicated on the
partnership of all 53 African states and between those states
and business - because one cannot talk about economic
development without business. And it involves other global
partners too, such as the G7/8, OECD countries and major players
such as China and India.
Much of what NEPAD has achieved since its formation appears
fragmented and disjointed and consequently its impact has not
been properly appreciated. Bear in mind that proper frameworks
had to be put in place. Socio-economic policies, regulatory and
legal frameworks, among them the African Peer Review Mechanism
have been implemented. We had to create an environment which is
conducive to investment and ensure that we ourselves conformed
to global standards of governance at political, economic and
corporate levels.
This did not appear to offer concrete, tangible evidence that
NEPAD was being effective. It seemed like mere pontificating.
How is NEPAD making its covenants and declarations work? What
has it achieved? People don't want promises and theories, they
want results.
So let me illustrate some of these results - but I am
highlighting only a few, because otherwise we'll be here till
lunchtime!
Education, we know is at the core of any country's development.
To enable our people to compete in a global environment,
technology is an imperative. So under the guidance of a number
of IT companies, Hewlett Packard among them, a two-year
experimental project took place, interconnecting 96 schools in
16 countries. It provides end-to end ICT solutions that will
eventually connect all 600 000 schools in Africa to the NEPAD
e-schools Network and Internet.
Energy is another core issue. And we've all recently experienced
what happens when demand exceeds supply! So under the aegis of
NEPAD, the Westcor Project was established. The Democratic
Republic of Congo, Angola, Namibia, Botswana and South Africa
are cooperating to use hydroelectric power form the Congo River
to balance power generation and distribution in the region.
There will be a massive spin-off for other opportunities for
water projects as well. The World Energy Council has recognised
the achievements and proposed accelerated international
participation.
Then we come to water - a scarce commodity in Africa. A joint
project has been launched, including Rand Water, the Department
of Water, the Department of Environmental Affairs and Tourism
and local governments which aims at optimum utilisation of
water. Many countries are waiting on these results so that they
in turn can implement the lessons, particularly countries in
east and west Africa where water supply is a major challenge.
Communication increasingly provides a competitive edge and this
has always been a challenge in our sprawling continent. Now the
Eastern African Submarine Cable Project will help tip the scales
more in our balance. This is a fibre-optic cable running along
Africa's east coast which will slash telecommunications costs,
making Africa a more attractive and viable business destination.
The system will plug into international networks, which is of
vital importance. It will be in place by 2010 which means that
coverage of the 2010 World Cup will be greatly enhanced - much
to the joy of soccer fans around the world.
Finally I must mention the Lex Africa project. Business is known
to complain vociferously and at length about restrictions which
legal and regulatory requirements place on trade and investment.
So to ease the often excessive demands, NEPAD has launched Lex
Africa, a network of law firms in 21 countries on the continent
which facilitates legal and regulatory frameworks to reduce
bureaucracy and encourage more foreign direct investment and
domestic investment.
So the fruits of NEPAD are already visible. But let us not
forget other profound achievements - not frequently mentioned
because they tend to happen behind the scenes.
Conflict resolution and peace building in numerous countries
have been unprecedented. I need mention only Rwanda, Burundi and
the DRC as examples. Many more countries are holding democratic
elections and looking to the ballot box instead of the gun for
solutions. NEPAD is promoting good governance, democracy and the
promotion of human rights as the norm, not the exception, and
African leaders are committing themselves to increasing national
budgets allocations to this end.
The African Peer Review Mechanism has been an important factor
in this process. Twenty-six countries have already signed up and
are addressing corruption, poor governance and inefficient
delivery of goods and services. Inevitably, more countries will
be encouraged to participate. In South Africa, numerous areas in
need of attention were highlighted and are currently being
addressed by stakeholder programmes.
NEPAD has identified priority areas which are important for
Africa and its peoples - areas incidentally, which were not
among top priorities of the development agenda of international
parties. These have now become core issues. They include
agriculture, infrastructure, ICT, science and technology, the
environment and regional economic integration.
More countries are also now implementing the NEPAD Health
Strategy to drive a more concerted effort against perennial
scourges such as TB, Malaria and AIDS.
Then of course, there is infrastructural development. Many have
considered the lack of infrastructure as a reason not to invest
in Africa. The visionaries and entrepreneurs have recognised it
as a huge opportunity. Infrastructural development projects have
wide-ranging repercussions: poverty alleviation, job creation,
improved communication, access to centres of business and to
business opportunities, enhanced quality of life - and of course
of great interest to business partners, a very rewarding return
on investment.
And one irrefutable fact for the sceptics is that average
economic growth for the continent in 2004 was 5.4% which the
International Monetary Function predicts will hold its upward
trajectory. So there is no question that business opportunities
abound.
Many global players have been quick to realise it. In fact,
China is going to great lengths to make itself a friend. And
South African business does run the risk of being shouldered out
of the way. China has a long-term vision and is hungry for
resources and raw materials. China-Africa trade in 2006 stood at
US$50 billion, with the surplus in favour of China. While China
can introduce technology and help build infrastructure, NEPAD
sees Africa determining its own terms of reference. It is our
intention to dictate terms of engagement with Africa, not to be
dictated to. In the spirit of the African Renaissance and the
NEPAD Programme we shall ensure that the ravages of the 19th
century scramble for Africa, are not repeated. We are set to
determine our own destiny, ensuring that the requisite benefits
flow into Africa. We wish to work within our own regulatory
frameworks, not those of others. NEPAD is based on principles of
African ownership and leadership together with broad
participation by all sectors of society.
NEPAD has the potential to become the primary engine for
economic growth and wealth creation in the continent. It has
developed numerous frameworks and programmes in the priority
sectors I mentioned. Based on the significant successes of the
past few years, we are now strongly encouraging the private
sector to become a key partner in mobilising NEPAD.
And this you can do by joining the NEPAD Business Foundation (NBF).
Through NBF, the private sector has access to comprehensive
information on NEPAD projects and can make use of important
support structures in expanding into Africa. NBF hosts regular
networking events where speakers provide invaluable insights
into business on the African continent. Members also benefit
from a host of added advantages to promote their products and
services.
I believe that we Africans stand at a crossroads in our history.
We have had the courage through NEPAD to examine our own
weaknesses and deficiencies and start taking proactive steps to
address them. We have the vision to map out ambitious programmes
for change and development. The road ahead of us is not an easy
one. But it is our road, it is the one we have chosen to lead to
our specific African destiny. So let us take hands and travel it
together.
Ends
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