Africa tackles impending global recession
The Africa Investment Forum, which is organised by the Commonwealth Business Council (CBC) and Gauteng Economic Development Agency (GEDA), aims to enable African countries to present the case for investment to banks and other financial Institutions. The forum is chaired by Cyril Ramaphosa, chairman of Shanduka Group and board member of the CBC, and will be addressed by more than 50 government and business leaders.
"African business leaders know that a downturn in industrialised countries will hit growth, hurting access to finance and reducing remittances," said CBC chief executive Dr Mohan Kaul, "but agree that while Africa cannot change the global economic climate, the continent has to respond by accelerating economic integration, and focusing on key priorities: infrastructure development and reducing inter-Africa trade barriers for creating larger markets."
Africa's exposure to western markets has been partially diluted by exports to India and China which now account for 13% of exports. But falling resource prices and global demand are expected to hurt exports, although some countries will benefit from resultant reduced food, energy and transport costs.
The forum, one of the continent's longest established business events, will address "African Linkages for African Growth". Trade ministers from Botswana, Malawi, and Namibia will discuss the SADC single market, and a special panel of banks and financial institutions will debate the impact of the global financial crisis. "The effects will be mixed," said Kaul, "Our sense is that credit and loans will become more expensive, but that investment funds for infrastructure are still available, if the deals are well structured."
"We are backing the forum because of the province's strategic position as a gateway to many parts of the continent, the heartbeat of key investments and business decisions and a complete Global Competitive City Region poised to assist Africa's economic integration efforts", explained GEDA chief executive, Blake Mosley-Lefatola.
The forum is being sponsored by global companies including Anglo American, Transnet, RioTinto and Standard Bank. Themes will be how to drive growth from existing investments, and will examine how the transport and resource sectors can add value through the supply chain, and facilitate the trading capacity of smaller companies. Forum sessions will bring together both potential investors and projects to develop new business partnerships and promote increased trade and investment. There will be large scale participation from investment promotion agencies with delegations from Cameroon, Uganda, Mozambique, Gambia, Ghana, Lesotho, Rwanda and Zambia which will present investment projects.
