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The Power of the Rising Development Generation Africa
The Power of the Rising Development Generation Africa
Africa Needs Real-Practical Solutions
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There was nothing significantly new as business leaders at the recently concluded Commonwealth Heads of Government Meeting (CHOGM) continued the same story of Africa's latent and unexploited potential but fell short of clear and realistic work plans for Africa's way forward. One meeting themed, "Enhancing intra-African Trade" which was a sub-discussion at the Commonwealth Business Forum held at the Kampala Sheraton clearly demonstrated that if only Africa could jump start a quicker inward trade revival process, real and tangible progress and better livelihood would be achieved for her poor masses. Inward, because the continent has the potential to achieve a lot within itself without venturing outside. Dr. Yvonne Muthien, director special projects, Coca-Cola, Africa illustrated that even a 1% increase in Africa's share of world trade which would amount to $70 billion per annum in earnings would translate to more than four times the amount of foreign trade the region receives. "We can clearly see there is enormous potential. Africa's profitability is the world's best kept secret," intoned Muthien.



Exports from Sub-Saharan Africa increased to $177 billion in 2005 indicating a 27% increase up from the $129.4 billion realised in 2004.CHOGM, in many ways, produced the positives that accrue from business networking especially among the private sector as opposed to round table talk shops. But clearly it was the mention of the challenge of government's failure to provide sufficient infrastructure, a lack of well coordinated coherent trade strategies and overlapping memberships in trade blocs, matters that have been sung for years and have brought no freshness. "The biggest challenge is the lack of capacity in customs operations. A mere 5% of goods are inspected. We need a more sophisticated system of detecting smuggling and smuggled goods, promote local content and improve financial structure," said Muthien.



But clearly it was also evident that the continent is riding past the days of pessimism, for the business leaders clearly know that in the same challenges, there in lies the magical opportunity to grow their businesses and transform Africa. "To conclude therefore, it is not a gloomy picture but a challenge and an enormous opportunity. We are operating in a buoyant phase of growth in the history of the continent, the opportunity is there, let us grow our continent," said Muthien. They recommended the easing of cross border trade and efficient use of ICT, customs reforms and support to SMEs. "It is critical Africa's progress depends on a vibrant and modern SME sector. We are encouraging partnerships between SMEs and multinational organisations," said Muthien.



There was also a general consensus about the need for increased trade above all other efforts to spur Africa, because essentially and ultimately, trade creates wealth and consumers get quality competitive products. But Africa is not trading enough. In the mid 1990s, Africa controlled 4% of world trade, today it is just about 2%. "Africa should look to trade more with one another and the focus needs to be in quality and not quantity," said Sir John Kaputin, BAT director for Sub Saharan Africa.


December 4, 2007 | 1:29 PM Comments  0 comments

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