FAVOUR FOR PROFIT

The World Economic Forum on Africa

 

WES Newsdesk-London 11th May 2012

 

The World Economic Forum (WEF) on Africa has come to represent a spectacle of African leaders followed by their entourage of political and business advisors cajoling some of the world’s influential people. The sweet talk and persuasion is all about investing in Africa.  This year at the WEF in Addis Ababa, Ethiopia, it was no different, African leaders campaigned for foreign investment in their respective countries and why the continent should be the preferred destination for foreign investment.  A new study by Ernst and Young indicates that investment in Africa is picking up and has almost returned to levels last seen in 2008, however the entire continent still attracts fewer investors than India and far fewer than China.  Former Nigerian Central Bank Governor, Charles Saludo said, in his experience African leaders campaigns aimed at attracting investment would have limited success.  His advice to African governments is to “Create a business-friendly environment and then get out of the way. The previous governments were going all over the world asking for foreign investors to come in.  My hypothesis was that, no, it's not a favour.  You're not going to ask them for a favour.  If it is profitable for them to come in, they will come."  Indeed the bottom line for investors is profit, but what tops the agenda at the WEF on Africa this year is “shaping Africa's transformation” in the decades ahead. 

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