3. Page 3
Preface
Page 4
Summary: Raising the Bar
Page 8
Building Capacity for Success
Page 12
Enhanced Investment
Page 16
Africa as a Global Partner
Page 20
A Competitive Future
Page 22
Pathways to Prosperity
Page 24
Raising the Bar in the WorkSpace
Page 26
Acknowledgements
Contents
5. 3 | World Economic Forum on Africa
Preface
With growth continuing unabated and a determinedly
bullish mood on the ground, the 17th World Economic
Forum meeting in Africa provided an opportunity for the
leaders of the continent to reflect upon achievements
and emerging prospects, but also on the obstacles to
overcome to ensure a prosperous future for Africa.
Sustaining growth will require decision-makers to “raise
the bar” and aggressively tackle the existing as well as
looming capacity and skills deficits that are threatening
to throttle the considerable progress achieved thus far.
Cognizant of this risk, the World Economic Forum on
Africa exposed the emergence of a powerful
consensus among key stakeholders to focus on the
priority areas for fostering sustained growth in Africa.
These include infrastructure, education, health
provision, agriculture and strong institutions. We
commend the leaders that have added deeds to words
by spearheading concrete initiatives in these critical
areas.
The meeting itself reached new heights: high-level
Indian and Chinese participation strengthened the now
annual review of the booming Africa-Asia partnership. A
good variety of appropriate session formats enriched
and supported our signature style of informal
interaction. And tough issues tackled in response to
requests from leaders included climate change and a
review of the current situation in Zimbabwe.
We are also pleased that the meeting continues to
serve as a platform for leaders to reflect upon Africa’s
position in an increasingly globalized world where
opportunities such as new geopolitical constellations
must be leveraged, while risks ranging from climate
change to terrorism must be mitigated by adding an
“African voice” to the ongoing international debates
around these issues.
We would particularly like to thank this year’s Co-Chairs
of the World Economic Forum on Africa, who provided
world-class leadership and the support needed to
tackle the tough issues throughout the gathering. Thus
we extend our appreciation to Cynthia Carroll, Chief
Executive, Anglo American, United Kingdom; Li
Ruogu, Chairman and President, Export-Import Bank
of China; Tokyo Sexwale, Executive Chairman,
Mvelaphanda Holdings, South Africa; and Malvinder
M. Singh, Chief Executive Officer and Managing
Director, Ranbaxy Laboratories, India.
This overview cannot aim to do full justice to the depth,
diversity and buoyant tone of this year’s discussions in
Cape Town, but it will hopefully provide a taste of the
resolve and vigour that emanated from the meeting’s
nearly fifty sessions, workshops and plenaries. Instead
of being a summary, this overview attempts to highlight
some of the aspirations, successes and concrete
pledges of the wide cross-section of leaders who took
part in this event.
We are already looking forward to welcoming you to
the World Economic Forum on Africa in 2008 and
count on you to build on this year’s deliberations and
turn promises into reality.
Haiko Alfeld
Director, Head of Africa
6. 4 | World Economic Forum on Africa
To frame their discussions, participants at the World
Economic Forum on Africa in Cape Town used South
African President Thabo Mbeki’s call at last year’s
meeting for a focus on capacity building and
implementation. Planning ambitious projects and
taking in investments and aid money is one thing,
actually getting things done and initiatives launched
and running is another.
Expectations for Africa among Africans and outsiders
have risen significantly in recent years in part because
the continent has recorded its best economic
performance in a generation. The African Development
Bank expects growth to approach 6% this year. There
are other reasons for the renewed confidence and
optimism. Many countries have succeeded in
resolving longstanding conflicts, trade with and
investment from China have sharply increased, and
the international community has focused much
attention on Africa and its humanitarian challenges.
Most important, however, is that Africans themselves
are taking action to create solutions to the persistent
problems they have faced such as poor governance
and to pressure each other to act.
Africa's GDP Growth
Source: IMF World Economic Outlook Database, April 2007
Sub-Saharan Africa Pacing the Continent's Growth
7%
6
5
4
2004 2005 2008F2007F2006
GDPGrowth
World
Africa
Sub-Saharan Africa
Africa’s momentum is building. “The right policies are
working,” said former Nigerian education minister
Obiageli Katryn Ezekwesili, Vice-President, Africa
Region, at the World Bank in Washington DC. But,
she advised, the continent itself must raise the bar
and pursue an even more ambitious “internally driven”
development agenda. Africa has to build on its
successes by bringing standards of governance
higher, deepening continental integration, spreading
more widely the benefits of globalization, and
redoubling efforts to confront the perpetual problems
of disease, hunger, illiteracy and civil strife.
The optimism and goodwill that greeted former United
Nations Secretary-General Kofi Annan’s
announcement that he would lead the Alliance for a
Green Revolution in Africa (AGRA), a new coalition
aimed at finding practical ways to ease the burdens of
hard-pressed small-scale farmers and invigorate the
languishing agricultural sector, stemmed from the
recognition among participants and other stakeholders
in Africa that only such homegrown approaches can
work. “It will succeed because African leaders
themselves have committed to it; they haven’t just
talked,” said Mamphela Ramphele, Executive
Chairperson, Circle Capital Ventures, South Africa.
Armed Conflict in Sub-Saharan Africa on the Decline
Source: Human Security Brief 2006
40
35
30
25
20
15
10
5
0
2002 200520042003
Numberofconflicts
State-based armed conflicts, sub-Saharan Africa
Non-state armed conflicts, world
Non-state armed conflicts, sub-Saharan Africa
State-based armed conflicts, world
Summary: Raising the Bar
All of what we do has to be linked to
building the necessary capacity to
take the continent away from poverty.
Thabo Mbeki, President of South Africa
“ “
7. 5 | World Economic Forum on Africa
“We want to talk about and celebrate our successes,”
said meeting Co-Chair Tokyo Sexwale, Executive
Chairman, Mvelaphanda Holdings, South Africa. But
at this crucial point in what looks like a sustainable
African boom, success cannot be taken for granted.
“There are still huge areas that need reform,”
Ezekwesili warned. “Let’s not be triumphant.”
Under the theme “Raising the Bar”, the programme of
this year’s World Economic Forum on Africa was
divided into five sub-themes. Participants made the
following key points during the meeting:
Building Capacity for Success
The need to build Africa’s capacity to absorb
investment and aid and to implement its development
plans efficiently was highlighted by South African
President Mbeki at the 2006 meeting. This priority was
the starting point for discussions by participants this
year.
• Building the capacity that will help Africans out of
poverty must be the over-arching goal of every
development agenda and initiative for the continent.
Africa needs the capacity to maximize the benefits
of the investment, trade and aid pouring into the
region.
• Africa must also develop the capacity to implement
regional approaches to problems that require such
solutions. These include the lack of infrastructure,
the threat of infectious diseases, climate change,
hunger, the need to develop financial markets to
ease access to capital, and water supply, among
others.
• Capacity building is needed in both urban and rural
areas, in both the public and private sectors, and in
all sectors of the economy. The lack of skills should
be an urgent focus.
• Public-private partnerships will be essential for
capacity building. Also critical: good governance
that focuses on achieving results by solving specific
problems and not getting bogged down trying to
address large and complex ones.
Enhanced Investment
Money available for Africa’s development is not in
short supply. Infrastructure and investment funds are
mushrooming and there is no shortage of interest from
institutional and other investors. The focus now is on
doing more with finance, in particular using funds to
boost private sector participation.
Infectious Diseases Still a Major Cause of Death in Africa
Source: World Health Organization
35%
30
25
20
15
10
5
0
Malaria
HIV/AIDS
TB
Total AfricaTotal World Sub-Saharan Africa
Percentageofalldeaths
The world needs Africa as much as
Africa needs the world.
Klaus Schwab, Founder and Executive Chairman,
World Economic Forum
“
“
8. 6 | World Economic Forum on Africa
• There no longer appears to be the broad view that
the whole continent is a high-risk region. The chief
obstacle today is a lack of bankable projects, the
limited number of financial instruments, capacity
constraints, and a lack of liquidity in local markets.
• There is concern that many of Africa’s financial
markets are not modern enough to cope with the
growing demand. This is prompting African
companies to look to international exchanges to
raise capital.
• Africa’s ability to integrate its markets is hampered
by the fact that its monetary systems remain
fragmented. Africa must regionalize to help make its
small economies more globally competitive.
• There are other key challenges to overcome,
including the aversion of the private sector to
investing in infrastructure projects and the lack of
skills.
Africa as a Global Partner
Africa’s global profile has been given a new sheen by
the interest taken in the continent by emerging
economic superpowers, China and India. The G8
countries have, at the same time, been accused of
failing to give the continent the support they have
promised.
• China and India have approached Africa differently
from the West, seeking partnerships and
cooperation rather than the neo-colonial and
paternalistic relations many African countries believe
characterize relations with western nations. Africa
has been a major beneficiary of China’s voracious
appetite for raw materials.
• China says that the closer partnership between Asia
and Africa allows both regions to better address the
challenges of globalization.
• There is rising scepticism in some countries and
among some sectors that China is undermining
African business interests with cut-price contracts
and cheap goods and that Chinese investors do not
adhere to regulations on mining safety and
intellectual property protection.
• Africa must confront global challenges such as
climate change. But to do so and to participate
more fully in the global economy, the continent must
deepen its regional links and increase intra-African
commerce.
Globalization without the active
participation or involvement of Africa
is neither complete nor fair.
Li Ruogu, Chairman and President, Export-Import Bank of
China; Co-Chair of the World Economic Forum on Africa
“ “Some of Africa’s markets are so small.
Every country has different regulations
and requirements for the same
product. There is no stability in policy.
If we can get a larger market and
place in which to operate, the
economies of scale and the benefits
to the customer can be substantially
larger.
Malvinder M. Singh, Chief Executive Officer and Managing
Director, Ranbaxy Laboratories, India; Co-Chair of the World
Economic Forum on Africa; Young Global Leader
“
“
9. 7 | World Economic Forum on Latin America
A Competitive Future
Africa’s competitive performance as measured by the
latest World Economic Forum Global Competitiveness
Report indicates that despite considerable progress
the continent must further raise the bar. To do so will
require focusing on enhancing human capital, deepening
regional integration, fostering energy innovation and
increasing the global demand for African products.
• Africa must reinvest the gains of recent years in its
most precious resource – its people. While
education and skills training are important, the
urgent priority must be to create jobs.
• African countries need to find ways to meet the
continent’s growing demand for energy. To do so
may require the development of alternative sources
such as biofuels which, if fully harnessed, could also
become a new source of export earnings.
• Regional integration is critical. From air travel to
mobile phone use, Africa must focus on trade and
investment facilitation and lowering barriers to doing
business on a regional basis.
• To promote global demand for their products,
African business has to build the Africa brand.
Pathways to Prosperity
While most Africans are optimistic about their future,
as the economic fabric of the continent changes –
particularly through urbanization – governments,
businesses and civil society must forge partnerships
to ensure that reality matches aspiration.
• A key challenge for African development is to unlock
the potential of the continent’s new urban dwellers
by further developing technologies such as mobile
telephony that allow them to participate in the
market through increased access to financial
services.
• Another key priority is to provide fast-growing cities
with greater and more reliable access to electricity.
• It is crucial to improve the access of Africans to
healthcare. Of particular urgency is the need to
scale up partnerships to combat HIV/AIDS, malaria
and tuberculosis.
• To consolidate Africa’s socio-economic gains, efforts
are needed to increase public ownership of
government. Initiatives to improve governance, such
as the launch of an index of governance
performance and programmes to combat
corruption, are essential.
Companies must commit themselves
to good governance, including China
and India, as they come into Africa so
these relationships can be exploited
maximally for development.
Tokyo Sexwale, Executive Chairman, Mvelaphanda Holdings,
South Africa; Co-Chair of the World Economic Forum on Africa
“ “
What attracts us to Africa and what
will propel us to more activities and
investment? First is willingness in the
countries where we are to engage and
act as partners. It’s all about
partnerships and business partnering
with the community, stakeholders and
governments.
Cynthia Carroll, Chief Executive, Anglo American, United
Kingdom; Co-Chair of the World Economic Forum on Africa
“
“
10. 8 | World Economic Forum on Africa
At last year’s World Economic Forum on Africa, South
African President Thabo Mbeki told participants that
an urgent priority for Africa is to develop the ability to
implement its ambitions. The continent, which has
been growing at unprecedented rates, has managed
to resolve a number of lingering conflicts and to create
a more attractive business climate, he said. There is
fresh enthusiasm about Africa among investors and
renewed zeal among the international community to
address the persistent problems of poverty and
disease. There are multiple Africa initiatives under way,
from infrastructure projects to HIV/AIDS prevention
schemes. “In reality, we have to implement programmes
to which we have already agreed,” Mbeki said last
year. “Basically our challenge is our capacity to
implement those plans. The capacity to implement
stands at the centre of our challenges.”
The president’s call for capacity building was the
starting point for this year’s meeting. At the opening
plenary, Mbeki reiterated his concerns about the
constraints on growth that result from the lack of
capacity. “All of what we do has to be linked to
building the necessary capacity to take the continent
away from poverty,” he said. Both hardware and
software are needed. Building schools to improve
education will do little if the roads and transport
systems are not there for students to get to the
facilities. Pouring investment into infrastructure will
have little impact if poor governance and weak rule of
law mean that the money is wasted or does not get
deployed correctly. The benefits of constructing power
plants will be sharply reduced if an economy does not
have the workforce with the skills to operate and
maintain them properly.
A further complication is that Africa, like other areas in
the world, increasingly needs regional solutions to
problems. Countries have to collaborate to address
such challenges as the continent’s infrastructure
deficit, the threat from infectious diseases, hunger and
food shortages, water supply and climate change.
But, as Mbeki pointed out, Africa’s “regional
communities don’t have the capacity to design
regional projects even though the concepts are there.”
Regional institutions are simply not strong enough.
Capacity has to be built at all levels, with all sectors of
society contributing. Consider the recently launched
campaign for a “Green Revolution” for Africa. At Cape
Town, former United Nations Secretary-General Kofi
Annan announced that he would lead the Alliance for
a Green Revolution in Africa (AGRA), a new coalition
aimed at finding practical solutions to “the major
cause of our continental poverty – an agricultural
Building Capacity for Success
In the last 50 years, governance in
Africa has gone downhill and is in bad
shape. The question we need to ask
is: how do we get out of this
situation?
Mo Ibrahim, Chairman, Mo Ibrahim Foundation; Chairman,
Celtel International, United Kingdom
“ “
We need the capacity to be able to
negotiate with the private sector.
Ngozi Okonjo-Iweala, Distinguished Fellow, Global Economy
and Development, Brookings Institution, USA
“
“
11. 2010 on Track?
There are extremely high expectations for the 2010 FIFA World Cup
in South Africa. But is 2010 really a Holy Grail or silver bullet? And
can South Africa deliver on the high expectations?
“The World Cup is here in South Africa to stay,” declared Daniel
Alexander Jordaan, Chief Executive Officer, 2010 FIFA World Cup
Organising Committee, South Africa. “Local companies have
invested more than US$ 700 million – which is higher than the
amount invested locally in the Korea-Japan tournament. Surely
these companies know what can be achieved,” he said in a
session assessing South Africa’s progress.
Jordaan pointed out that FIFA owns the World Cup – and it is a
risk-averse organization. If it did not trust South Africa’s ability to
host the event, it would not have chosen the country.
Rob Hughes, Sports Columnist, International Herald Tribune,
France, took issue with this view: “It is South Africa’s World Cup;
you should take ownership of it. Don’t rely on [FIFA head] Sepp
Blatter to provide a World Cup. He can’t, you can,” said Hughes.
South Africa is not going overboard in its expectations, said Tokyo
Sexwale, Executive Chairman, Mvelaphanda Holdings, South
Africa, and a Co-Chair of the World Economic Forum on Africa.
“Not only will we meet expectations, we will surpass them. This is
the single biggest capital injection into one country under a
sporting code. There will be huge legacy benefits. Also, it is a
chance to maximize tourism benefits like no other.”
Asked if World Cup construction is on track, Norbert Jorek, Group
Executive Director, Murray & Roberts, South Africa, acknowledged
that “time is tight”. He said: “We have three years to complete the
2010 building programme, and we will need them. We must fight
complacency. We have to stop fiddling about with specificity of
designs. If you want marble floors, put them in after 2010.”
sector that has languished but is now poised to be so
much more productive and dynamic.” AGRA’s
objective is “to dramatically increase the productivity,
food security, incomes and livelihoods of small-scale
farmers, many of whom are women.”
Literacy on the Rise Across Most of the Continent
Source: World Bank World Development Indicators
1990 20061990 2006
90
80
70
60
50
40
30
20
Morocco South
Africa
WorldTunisiaGhana EgyptAlgeriaSenegal Sudan Sub-Saharan
Africa
Kenya
Adultliteracyrate
9 | World Economic Forum on Africa
Politicians should no longer be
allowed to get away with saying that
democracy should be different in
Africa. International standards have to
apply to Africa even though they may
have to be defined in a way that
makes them applicable to African
countries. Leaders can no longer hide
behind the notion of the uniqueness of
Africa.
Mamphela Ramphele, Executive Chairperson, Circle Capital
Ventures, South Africa
“
“
12. 10 | World Economic Forum on Africa
Few would doubt that a Green Revolution would
indeed address poverty in Africa at its core. But for
the campaign to succeed will require more than just
high-yielding crops and modern biotechnology. What
will be needed are improvements on a number of fronts
including infrastructure, water management, financial
services, market access and distribution, and trade
facilitation. Said Dinnah Rissle Kapiza, an agro-dealer
from Malawi: “Small-scale farmers need to find markets.
We need to strengthen capacity at the community
level.” That means educating farmers, Armando Emilio
Guebuza, President of Mozambique, told participants.
“Besides using better seeds, more water and irrigation,
we need to train people,” he explained. “The
knowledge students get in school may not be relevant.
That is why our emphasis is on technical training.”
Africa’s skills shortage is a major constraint on growth.
Kapil Sibal, Minister of Science and Technology and
Earth Sciences of India, warned that to retain skills,
African countries must implement policies that offer
people employment opportunities and attract citizens
abroad to return home. An estimated 20,000 African
professionals have emigrated from the continent every
year since 1990. “We need more skills in Africa,” said
Gérard Wolf, Senior Executive Vice-President,
International Operations, Electricité de France (EDF), in
a session on the energy sector. “We need engineers.
We need people to run plants. We need people. We
don’t have enough Africans.”
Building capacity is not simply the government’s job.
Public-private partnerships are critical, given the
limited resources and skills of government. Business
can help government overcome capacity gaps,
particularly in finance and trade, said Richard Samans,
Managing Director, Centre for Public-Private
Partnerships, at the World Economic Forum. Often the
public sector is ill equipped to forge mutually beneficial
alliances with business, much less execute them. “The
public sector needs to build the capacity to get into
such partnerships” in the first place, reckoned Mbeki.
“There are many examples of such partnerships
across the continent that failed because they were not
equal.” Added former Nigerian finance minister Ngozi
Okonjo-Iweala, now Distinguished Fellow, Global
Economy and Development, Brookings Institution,
USA, “We need the capacity to be able to negotiate
with the private sector.”
In a way, the great endeavour to deliver Africa from
poverty and pave the way to prosperity is not unlike
South Africa’s preparations for the 2010 FIFA World
Small-scale farmers need to find
markets. We need to strengthen
capacity at the community level.
Dinnah Rissle Kapiza, Agro Dealer, Malawi
“ “
We need people with a can-do attitude
who will break through barriers and
get the job done.
Ng’andu P. Magande, Minister of Finance and National
Planning of Zambia
“ “
Klaus Schwab, Founder and Executive Chairman, World Economic Forum; Tumi Makgabo, Manager, Communications, 2010 FIFA World Cup
Organising Committee, South Africa; Armando Emilio Guebuza, President of Mozambique; Dinnah Rissle Kapiza, Agro Dealer, Malawi
13. Cup but on a grand, continent-wide scale. For the
event to be a success, many different factors and
components must come together – the infrastructure,
the marketing, the community support, the coordination
among host cities, the security arrangements and, of
course, the fans. For Africa to achieve the kind of
progress that much of South and East Asia have in the
past two decades, it must address multiple deficiencies
and bring together a host of essential ingredients.
Yet as Mbeki advised in the closing plenary, it is
important that African countries focus on specific
problems and not try to take on ones that are too big
or too complex. “If you deal with one big lump, it is
something you can’t chew,” he said. Africa will require
many blueprints for action that will vary across
regions. The success of these efforts will depend in
large part on the quality of governance in both the
public and private sectors. For this reason, the
initiative of the Mo Ibrahim Foundation to launch a
governance index to assess the quality of Africa’s
leaders is a significant step in promoting good
governance and accountability.
As with the World Cup, Africa has its die-hard
sceptics, critics who persistently doubt that the
continent can build the capacity it needs to succeed
in the long term. “There is little we can do about Afro-
pessimism,” meeting Co-Chair Tokyo Sexwale,
Executive Chairman, Mvelaphanda Holdings, South
Africa, conceded in a session on the World Cup. He
might as well have been giving all of Africa advice as
the continent faces the long-term challenge of
mastering the globalization game: “We can still change
perceptions with effective communications. But
actions speak louder than words. We must just show
people what we can do.”
11 | World Economic Forum on Africa
We are often asked why we don’t just
increase capacity to deal with the
[energy] problem. But we don’t have
capacity to increase capacity.
Carlos Poñe, Chief Executive Officer, ABB, South Africa
“ “
We need to build strong institutions.
We need more partnerships between
the public and private sectors to
minimize the risks.
A. Michael Spence, Professor Emeritus, Stanford University,
USA
“ “ We need more skills in Africa. We
need engineers. We need people to
run plants. We need people. We don’t
have enough Africans.
Gérard Wolf, Senior Executive Vice-President, International
Operations, Electricité de France (EDF), France
“ “
14. 12 | World Economic Forum on Africa
There is no shortage of investor interest in Africa,
despite a lingering perception of high risk. However,
the level of risk depends very much on the country in
which the investment is made and what is being
invested in, which allows significant risk mitigation.
There no longer appears to be the broad view that the
whole continent is a high-risk region. Investors are
seeing high returns on investments and there is
increasing interest in opportunities on the continent.
The problem is not a shortage of money; it is a lack of
bankable projects, a lack of financial instruments,
capacity constraints and a lack of liquidity in local
markets.
Private Capital Flowing into Sub-Saharan Africa
Source: World Bank
Both debt and equity flows are returning
$40
35
30
25
20
15
10
5
0
-5
8%
7
6
5
4
3
2
1
0
-1
1998 2003 2005
Net private debt flowsFDI inflows (2-year rolling average)
Portfolio
equity
inflows
FDI
inflows
2002200120001999 2004
Privateflowsofcapitalto
sub-SaharanAfrica(US$billion)
FDIinflowstosub-SaharanAfricaas
percentageofworldwideFDI
Some of Africa’s 19 stock exchanges appear to be
gearing up for increased demand both locally and from
abroad. But there is a concern that many of them are
not modern or sophisticated enough to cope with the
growing demand. In fact, a poorly resourced exchange
may rather be a deterrent to investment. South Africa
remains by far the largest and most sophisticated
exchange in Africa, accounting for about 90% of the
continent’s liquidity. Its market capitalization of more
than US$ 700 billion is well ahead of the next biggest
contenders – Nigeria, with a market capitalization of
US$ 62 billion, and Morocco at US$ 58 billion. Similarly,
institutional assets under management in Africa include
US$ 200 billion in South Africa, compared to US$ 4
billion in Botswana and just US$ 400 million in Zambia.
Capital markets in some countries are growing – Nigeria
has seen capital market growth of 71% over the past
five years – while some of the smaller exchanges,
such as those in Botswana and Zambia, have
developed world-class systems. Bond markets are
also being developed in a number of countries. But
overall, the exchanges remain fragmented, with different
operating systems, little information sharing and poor
liquidity. A paradigm shift is required to an era of
greater openness, linkages and innovation to ensure
their success.
Enhanced Investment
Africa is the place to be.
Thierry Tanoh, Director, Africa Department, International
Finance Corporation (IFC), Johannesburg
“
“
I sometimes think we plan to death
and we are not good at the execution.
Maria Ramos, Group Chief Executive, Transnet, South Africa
“
“
15. 13 | World Economic Forum on Africa
The path to prosperity in Africa begins
at the fields of African farmers.
Kofi Annan, United Nations Secretary-General (1997-2006)
“
“No African country individually can be
competitive in the next 20 years
because they are too small.
Stefano Manservisi, Director-General, DG Development,
European Commission, Brussels
“ “
Governments must stop thinking
nationally and start thinking regionally.
M. G. Qhena, Chief Executive Officer, Industrial Development
Corporation (IDC), South Africa
“
“
According to Nicky Newton-King, Deputy Chief Executive
Officer, Johannesburg Stock Exchange, South Africa,
and a Young Global Leader, if African exchanges do
not become more liquid and more innovative, large
African companies may move to international
exchanges. There are already 30 to 40 African
companies listed on the London Stock Exchange,
with the local economies losing out on the benefits.
South Africa has called for African exchanges to
operate from the same platform, offering theirs, which
is also used by the London Stock Exchange, as a
possibility. They have responded to fears that this will
lead to South Africa’s domination of smaller
exchanges by saying it will merely be a technical issue
and will offer benefits to both the exchanges and to
investors, who would have easier access to African
markets.
Africa’s ability to build integrated markets is being
hampered by the fact that its monetary systems
remain fragmented, mostly because of sovereignty
concerns. This is out of step with the mantra of
regionalization as the answer to Africa’s problems of
small markets and uncompetitive economies. The
emphasis on regionalism is also a focus of
infrastructure funding in Africa, as regional funding
means greater spending efficiencies, the provision of
linked infrastructure across borders and a sharing of
risk. Low savings levels remain a problem in Africa,
affecting the ability to fund development domestically.
However, plans are under way to leverage African
pension funds, estimated to be worth US$ 160 billion
collectively, to fund infrastructure.
Stefano Manservisi, Director-General, DG Development, European Commission, Brussels; Marilou Jane Uy, Sector Director, Africa Finance and Private
Sector Development Department, World Bank, Washington DC; Trevor Manuel, Minister of Finance of South Africa; Lumkile Mondi, Executive Vice-
President, Professional Services, and Chief Economist, Industrial Development Corporation (IDC), South Africa; Li Ruogu, Chairman and President,
Export-Import Bank of China, and Co-Chair of the World Economic Forum on Africa
16. 14 | World Economic Forum on Africa
Foreign funding for infrastructure and development
continues to increase. Indeed, the European
Commission announced at the World Economic
Forum on Africa that it will inject 6 billion euros into
regional infrastructure projects over the next six years,
while the International Finance Corporation (IFC) says
it plans to increase spending in Africa to take
advantage of strong commodity prices and fewer
conflicts on the continent. “Africa is the place to be,”
declared Thierry Tanoh, Director of the Africa
Department at the IFC.
However, there are still concerns related to the
challenge in getting infrastructure projects to the
bankable stage and to the private sector’s risk
aversion in infrastructure projects. Another critical area
is a lack of skills – the continent simply does not have
the human resources capacity to drive large projects.
“We are often asked why we don’t just increase
capacity to deal with the problem. But we don’t have
capacity to increase capacity,” said Carlos Poñe, Chief
Executive Officer, ABB, South Africa.
Skills shortages and institutional capacity constraints
are also affecting countries’ ability to absorb large
investments. As Colin Coleman, Managing Director,
Goldman Sachs International, South Africa, asked,
“Do countries such as Nigeria, Kenya and Angola
really have the legal and regulatory systems to handle
deals of this size?” To illustrate his point, he was citing
several of the large deals recently concluded in South
Africa, such as that between UK banking giant
Barclays and South Africa’s Absa banking group.
While South Africa is the biggest investor in Africa
currently, there are calls for more investment to flow
from the economic powerhouse to the rest of the
continent. The South African government has relaxed
exchange controls on investment targeted at the
continent in a bid to encourage such investment
flows. This is allowing large South African
multinationals to increase their African investments.
For example, mining conglomerate and Africa’s largest
company, Anglo American, announced at the World
Economic Forum on Africa that it would be putting
US$ 3.5 billion in new investments into Africa over the
next five years.
Mobile phones are 'power tools' for
banking the unbanked.
Caleb M. Fundanga, Governor of the Bank of Zambia
“
“South Africa's success in the financial
sector is to get services extended to
the poorer communities.
Trevor Manuel, Minister of Finance of South Africa
“ “
17. 15 | World Economic Forum on Africa
Energy Poverty Alliance
The World Economic Forum has launched a private
sector-led initiative to bring energy to more people in sub-
Saharan Africa – three-fourths of whom do not have
access to electricity. The new Energy Poverty Alliance will
deliver business expertise and best practices to reduce
energy poverty in the region, which has the lowest
electrification rate in the world.
More than 70,000 people in Lesotho and the Democratic
Republic of Congo are set to receive electricity in a pilot
project run by the Alliance’s three initiating partners,
British Columbia Hydro and Power Authority (Canada),
Eskom (South Africa) and Vattenfall (Sweden). The three
are Industry Partners of the World Economic Forum.
“The joint solution of using alternative sources of
renewable energy, expanding the national and regional
grids, and using innovative, cost-effective technologies
will contribute to more individuals, industries and
businesses gaining access to electricity,” said Steve J.
Lennon, Managing Director, Resources and Strategy,
Eskom, South Africa.
The Development Bank of Southern Africa (DBSA) will
host the Energy Poverty Alliance Management Unit
(EPAMU) in Johannesburg, and operations will start on 1
September 2007.
“It is a milestone for the World Economic Forum to have
DBSA as a partner of the Alliance. This provides a good
platform to link international business capability with local
community needs, to develop a brand for electrification
projects and help develop financing mechanisms,” said
Christoph Frei, Director, Head of Energy Industries at the
World Economic Forum.
Africa Conversation
One month before the World Economic Forum on Africa,
the Forum created an Africa Conversation blog and
invited people around the world to contribute ideas and
questions for a special session at the meeting in Cape
Town. Fully incorporating the spirit of Web 2.0, more than
50 comments and questions were received via the site,
e-mail, SMS, voicemail or videos uploaded to YouTube.
The questions were put to the leaders participating in the
session, with the answers filmed and reposted on the
Internet. The result was a conversation between
participants, panellists and concerned global citizens.
Responding to a question concerning the recent Nigerian
election, Mo Ibrahim, Chairman, Mo Ibrahim Foundation,
and Chairman, Celtel International, United Kingdom,
commented that the main problem in Africa is poor
governance.
A posting from Russia asked what benefits Africa can
derive from international trade. Firmino Mucavele, Chief
Executive, NEPAD Secretariat, South Africa, replied that
the continent’s first priority is to grow intra-African trade
and remove the high transaction costs between individual
countries. "Even if an integrated global trade framework is
not yet working properly, Africans should still be able to
trade easily among themselves."
Read other questions and watch leaders’ responses at
forumblog.org/africaconversation
During the Africa Conversation
18. 16 | World Economic Forum on Africa
Africa as a Global Partner
Africa’s global profile has been significantly enhanced
by the keen interest taken in the continent, primarily in
its raw materials, by China and India. The emerging
South-South partnership has caused concern among
the continent’s traditional trading partners in Europe
and America, who have done business on the
continent on their own terms, unchallenged, for many
years. These relationships are under scrutiny in light of
both the new South-South trading relations and of a
new assertiveness by Africans themselves in setting
their own development agenda.
Countries such as China and India have approached
business with Africa differently from the West, seeking
partnerships and cooperation rather than the neo-
colonial and paternalistic relations many African
countries believe they have with Western nations.
China’s voracious appetite for raw materials has
changed global trading patterns, and Africa has been
a major beneficiary. The quest for raw materials has
been accompanied by increasing aid and trade with
African countries as well as the financing and
implementation of large infrastructure projects.
Africa's Exports to China Booming
Source: IMF
100%
80
60
40
20
0
2002 2006*
* non-seasonally adjusted full-year based on data through 3Q2006
2003 2004 2005
Though China's trade represented less than 10% of Africa's
external trade for the first three quarters of 2006
Yearoveryeargrowthinexports
Exports to China (incl. HK)
Exports to world (x-China)
$19 billion
through 3Q2006
$184.5 billion
through 3Q2006
South African Minister of Trade and Industry Mandisi
Mpahlwa claimed that those questioning the value of
Africa’s relationship with Asian giants are to be found
among the continent’s traditional trading partners. He
said Africa should not be questioned by the rest of the
world about its trading relationships, although he
cautioned that value addition should be encouraged.
Mpahlwa also suggested that African countries should
not wait for India and China to create the
opportunities for them but should be proactive about
getting the relationship on a footing that would allow
them to derive maximum benefit from it. The minister
said South Africa, currently the biggest investor in
Africa, had faced the same concerns from African
countries as are being raised now about India and
China when its companies moved into the rest of the
continent after 1994. “The fact that there were some
negative impacts doesn’t take away from the
investment made in new capacity in Africa and the
new opportunities created,” he said.
China says it is seeking a partnership with Africa
based on cooperation and friendship. “It is of great
significance for Asia and Africa to forge closer
partnerships so we can better address the challenges
of globalization,” Li Zhaoxing, Foreign Minister of the
People’s Republic of China from 2003 to 2007, told
participants, noting that the 800 Chinese companies
operating in Africa are improving the lives of Africans.
There is, however, a rising tide of resistance in some
countries and businesses to the way China is
undermining African business with cut-price contracts
and cheap goods as well as to its lack of regulation in
terms of mine safety and in intellectual property
issues. There are concerns among Africans that the
continent will emerge from this new relationship a
decade down the road and find it has, once again,
I don’t see why there should be
questions about a relationship that is
growing between Africa and India and
China, or any other country for that
matter.
Mandisi Mpahlwa, Minister of Trade and Industry of South
Africa
“ “
19. 17 | World Economic Forum on Africa
had its natural resources plundered by foreign
superpowers with little value added along the way,
thus repeating the much-criticized pattern of the
colonial and post-colonial era. “We face a challenge
on the African continent that we have faced before –
dealing with an energetic superpower, a highly
sophisticated nation,” said Stanley Subramoney,
Deputy Chief Executive Officer,
PricewaterhouseCoopers, South Africa. “We are again
in danger of swapping the family silver for presidential
palaces and the like. The race is on for commodities
and resources – are we sophisticated enough to deal
with this?”
Other risks for Africa from this relationship include the
lack of diversification and industrialization, which limits
the continent’s ability to exploit the relationship
meaningfully, and the fact that any economic
slowdown in these countries, notably in China, will
have a major impact on commodity prices and, in
turn, on Africa’s economic growth. Meeting Co-Chair
Tokyo Sexwale, Executive Chairman of Mvelaphanda
Holdings, urged India and China to adhere to
corporate governance principles in their dealings with
Africa. “India and China will have to behave in a
manner that is seen to be far removed from the
accusations made about our traditional partners,” he
said, citing colonialism, financial imperialism and
paternalism.
Questions have been raised about the ways in which
African countries should react to the risks posed by
global developments. The continent remains
particularly exposed to global risks for various
reasons, including its continuing dependence on raw
materials and related vulnerability to price shocks,
poverty, weak democratic processes, corruption, the
slow movement towards creating regional efficiencies
and a serious lack of skills and capacity.
A risk commonly raised in relation to Africa is that of
global warming and climate change. Although Africa’s
generally low levels of industrialization mean it is not a
key contributor to changing climate patterns, the
continent is likely to be the worst affected by the
phenomenon. African governments do not appear to
You cannot develop a continent
without energy. Africa needs to take a
part in the oil business.
Abdoulaye Wade, President of Senegal
“ “ There is increasing evidence that
African governments are keeping the
promises they made to the G8. Now
the other side must come through
with their promises.
Temitope W. Oshikoya, Director, Development Research
Department, African Development Bank (ADB), Tunis
“ “
Are the Millennium Development
Goals some distant yardstick or are
African governments working to
achieve them?
Zohra Dawood, Executive Director, Open Society Foundation
for South Africa
“ “
20. 18 | World Economic Forum on Africa
be prepared for the challenge, either in terms of
mitigating the risks emanating from it, such as food
and water scarcity, or in terms of taking advantage of
the opportunities the situation presents. These include
the development of biofuels on Africa’s vast tracts of
unused agricultural land, and carbon trading. There
are concerns that the continent’s reaction to climate
change will eventually be one of crisis management,
particularly in addressing new frontiers of conflict in
the battle over ever-reducing resources.
The G8 remains a challenge for Africa, given the
significant aid dependence of most countries, and
stands accused of not keeping the promises it has
made to African presidents at successive meetings.
These include pledges to increase aid and to provide
Africa's Vulnerability to Climate Change
Source: Maplecroft
Medium
Low
Extreme
No data
High
South Africa
Morocco
Nigeria
Algeria
Egypt
Vulnerability to effects of climate change
other support to the continent in return for
improvements in governance. “There is increasing
evidence that African governments are keeping the
promises they made to the G8,” said Temitope W.
Oshikoya, Director of the Development Research
Department at the African Development Bank (ADB).
“Now the other side must come through with their
promises.”
In terms of commercial linkages with the global
economy, Africa still has a long way to go and the
move towards creating bigger markets through
regionalism and increased intra-African trade is moving
slowly. Countries remain fragmented and inward looking,
with limited progress towards the harmonization of
operating requirements across borders. African
countries have been urged to do more to add value to
their resources. In turn, western nations need to
address the tariff and non-tariff barriers to Africa’s
exports in developed country markets.
Africa's Trading Partners
Source: IMF Direction of Trade Statistics
Trade shifting away from Europe
80%
60
40
20
0
1990
* EEC consists of Benelux countries, Denmark, France, Germany, Greece, Ireland, Italy, Portugal, Spain and UK
2005
PercentageofAfrica'sexternaltrade
EEC*
Other 31.7%Other 27.6%
US
China (incl. HK)
Japan
Li Ruogu, Chairman and President, Export-Import Bank of China, and Co-Chair of the World Economic Forum on Africa; Kapil Sibal, Minister of
Science and Technology and Earth Sciences of India; Li Zhaoxing, Foreign Minister of the People's Republic of China (2003-2007); Mandisi
Mpahlwa, Minister of Trade and Industry of South Africa; Tokyo Sexwale, Executive Chairman, Mvelaphanda Holdings, South Africa, and Co-Chair
of the World Economic Forum on Africa
21. 19 | World Economic Forum on Africa
Climate Change
In direct response to demand from members of the World Economic Forum’s Africa community, climate change was a key
element of the 2007 programme in Cape Town. Africa will be the hardest-hit continent by global warming but it can play a
stronger role in developing local strategies for adaptation and in shaping the international policy debate on mitigation.
The past year has seen a proliferation of documentaries and academic reports on climate change and its effects – the
strategy of this year’s meeting was to introduce some of the key findings of this research and, over three sessions in Cape
Town, help leaders ask the right questions and develop a strategy for the way forward.
The first session – one of the first of the meeting – was the Climate Change Update session. Discussion leaders included
authors of the UN’s Intergovernmental Panel on Climate Change (IPCC) report, which declared Africa will be the worst hit by
climate change in the future. Discussions ranged from the risks to agriculture from changing patterns of rainfall, to risks to
infrastructure (and populations) in coastal areas, and the risk that global warming will encourage the spread of disease.
A high-level private meeting held by the Disaster Risk Reduction Project of the World Economic Forum in collaboration with
the World Bank and UN specifically sought to tap the expertise of the African private sector and to ask how adaptation
could be improved through public and private action. In breakout groups, leaders brainstormed a potential private sector
contribution in the areas of water and agriculture, health, and risk management.
Finally, Nik Gowing of the BBC moderated a learning-by-doing WorkSpace session in which leaders were asked to “get a
grip” and make a first draft of a coordinated response. This began with a group learning experience in which participants
shared thoughts and advice with some of the world’s top experts on climate change and its impacts. Together they
explored the urgency of the issue, building up an understanding of the impact of an increase in temperature on Africa, its
people, communities and businesses. They continued their breakout discussions by looking at the most critical impact
areas and where action can be taken to make the biggest difference. The facilitator then pushed participants to consider
new ways to approach the challenge and urged them to take what they learned in Cape Town back to their communities
and businesses, thus seizing the opportunity to make Africa a world leader in managing, mitigating and adapting to climate
change.
We hope that this is just the beginning, and look to Africa’s leaders to pioneer local partnerships and act internationally to
help develop appropriate frameworks to reduce carbon emissions going forward, while sustaining economic growth and
promoting global equity.
22. 20 | World Economic Forum on Africa
A Competitive Future
While African countries represent only two out of the
top 50 countries in The Global Competitiveness
Report 2006-2007 of the World Economic Forum, they
represent 20 out of the bottom 25. For the continent
to sustain growth, which in 2006 topped 5.5%, it
must raise the bar on competitiveness much further.
But competitiveness, as defined by the Forum, does
not involve merely competing for world market share
for African products. According to the Report, if Africa
is to compete, countries must put in place “institutions,
policies and factors that set the sustainable current
and medium-term levels of economic prosperity”. Over
the course of this World Economic Forum on Africa,
participants outlined several focus areas, including
enhancing human capital, fostering energy innovation
and integrating regionally, while increasing global
demand for African products.
Competitiveness of African Economies
Source: World Economic Forum
2nd quartile 3rd quartile1st quartile 4th quartile
More competitive Less competitive
Competitiveness ranking among African nations
Tunisia, South Africa and Mauritius are
the continent’s most competitive economies
Tanzania
Nigeria
Namibia
Kenya
Gambia
Cameroon
Benin
Tunisia
South Africa
Morocco
Libya
Egypt
Algeria
Zambia
Uganda
Mauritania
Madagascar
Lesotho
Zimbabwe
Mozambique
Mauritius
Mali
Ethiopia
Chad
Burundi
Angola
Burkina
Faso
Malawi
Botswana
Participants called on African public and private sector
leaders to ensure that the gains of the previous years
are re-invested in the continent’s most precious
resource – its people. “The nature of our growth must
ensure that everyone in our society is a stakeholder,”
said Ngozi Okonjo-Iweala, Distinguished Fellow,
Global Economy and Development, Brookings
Institution, USA, and Minister of Finance and the
Economy of Nigeria from 2003 to 2006. “Even if we
reach 10% growth, issues such as unemployment and
home-ownership will still be paramount.”
Education and skills training are important, but the
region will lose much of its talent unless quality
employment opportunities exist at home. “The human
condition does not allow people to live off of
handouts,” said Trevor Manuel, Minister of Finance of
South Africa. “People want jobs.”
Also, as Africa grows, it will need more and more
energy, in many cases drawing on the same resources
that are increasingly demanded by the developed
world. For some, the answer lies, at least in part, in
traditional hydrocarbon reserves: “You cannot develop
a continent without energy,” said Abdoulaye Wade,
President of Senegal. “Africa needs to take part in the
oil business.”
The human condition does not allow
people to live off of handouts. People
want jobs.
Trevor Manuel, Minister of Finance of South Africa
“ “
23. 21 | World Economic Forum on Africa
Alternative sources of energy also hold promise – and
pose challenges. Participants debated the viability of
biofuels, both as a means to power Africa’s
development and as a product for sale on the global
market. Experts such as Hartmut Reinke, Director,
Eastern and Central Europe, Middle East and Africa,
DuPont de Nemours International, Switzerland, said
that fuel from biomass could be complementary to
hydrocarbon resources in satisfying demand in the
transportation sector. But he and others cautioned
that the technology is still so new that it would not be
an appreciable export for Africa in the near future.
Finally, for African nations to move up competitiveness
indices, they must not only look inward, but beyond
borders across the continent and overseas. Regional
integration emerged as a hot topic among
participants. Many lamented the fact that it is often
more expensive to fly or talk on a mobile phone to
another point within Africa than to Europe or America.
Tariffs, monopolies and corruption all stand in the way
of a fully developed regional market.
Africa's Power Generation Needs Growing
Source: IEA World Energy Outlook 2006
300
250
200
150
100
50
0
1990 20302004 2015
Demand for power generation could grow at a compound rate
of 3.18% through 2030, versus 2.01% for the world
Africapowergenerationdemand(Mtoe)
Nuclear
Other renewables
Hydro
Oil
Biomass
and waste
Gas
Coal
Such integration will not happen overnight. A. Michael
Spence, Professor Emeritus, Stanford University, USA,
a Nobel laureate in economics, cautioned that
European integration had taken 50 years – and
Europeans still have many problems to solve. For
example, flexible labour markets look good on paper,
but xenophobia can dampen the competitive climate –
as it threatens to do in South Africa.
Africans also need to look outward in order to grow
their economies by increasing demands for their
products. Following on discussions in 2006 at the
World Economic Forum on Africa regarding “Brand
Africa”, participants discussed ways to promote
African fashion designers and the African fashion
industry in general. Fashion is a business, said Robert
Polet, President and Chief Executive Officer, Gucci
Group, Netherlands, and designers should look for
ways to seduce consumers by creating trends.
The nature of our growth must ensure
that everyone in our society is a
stakeholder.
Ngozi Okonjo-Iweala, Distinguished Fellow, Global Economy
and Development, Brookings Institution, USA
“ “
L’Afrique: C’est Chic!
Africa has provided some of the world’s most recognizable models, but can
the continent provide the designer clothes to match its successes in
modelling? Participants were left in no doubt after a fashion show featuring
some of the region’s hottest designs.
Robert Polet, President and Chief Executive Officer, Gucci Group,
Netherlands, advised that fashion is a business and, as such, designers
should constantly be looking for new ways to seduce the customer into
buying new products. The fashion industry needs to be more competitive,
stressed Precious Moloi Motsepe, Chairperson, African Fashion
International, South Africa. She said African designs need to be promoted
as more than a passing fad. The secret lies in finding the elusive niche
market, according to Lynne Brown, Minister of Finance, Economic
Development and Tourism of the Western Cape Provincial Government,
South Africa.
24. 22 | World Economic Forum on Africa
Pathways to Prosperity
Most Africans see a bright future when they look ahead.
According to a recent Gallup International Voice of the
People poll, some 55% think the next generation will be
more prosperous than their own. But as the economic
fabric of the continent changes – most dramatically
through urbanization – governments, businesses and
civil society need to partner in order to make reality match
aspiration. Specifically, stakeholders must innovate in the
areas of technology, healthcare and political liberalization.
Guided or not, African development is happening.
Within two decades, more than half of the population
will be urban; on average, African cities are growing
faster than cities in any other part of the world. The
challenge, said Cameron Sinclair, Founder, Architecture
for Humanity, South Africa, is to seize the potential of
the burgeoning urban population for the betterment of
African societies as a whole.
African Urbanization
Source: United Nations
Africans increasingly moving to cities
70%
60
50
40
30
20
10
0
1950 20001975 2025
Percentage of world population
living in cities
Percentage of African population living in cities
Africa’s share of world population
One step towards unlocking the potential of the new
city dwellers is to develop new mobile technologies
that allow them to more fully participate in the market
by increasing their access to financial services. “The
mobile phone is one of the most powerful inventions
of modern times,” said Caleb M. Fundanga, Governor
of the Bank of Zambia.
Already, one new technology, known as “m-banking”,
a system of money transfers via mobile phones, is
proving commercially viable, as well as socially
beneficial. “Our mobile phone-based money transfer
system, launched in Kenya in March, has seen more
than 110,000 customer registrations in 12 weeks,”
explained Susie Lonie, Senior Manager, Mobile
Payments, Vodafone Group Services, United Kingdom.
In a country like Kenya, where more than three times
as many people have mobile phones as have bank
accounts, such technology facilitates everything from
microfinance payments to remittances to rural relatives
– and helps grow an entrepreneurial culture.
But new technologies also require greater access to
electricity. Participants discussed the potential of an
“electranet”, a system by which small-scale
generators can sell to the large power grid. If it works,
said John Chiahemen, Editor, Africa, Reuters, South
Africa, it could do to the power sector what mobile
phones did for the communications sector. In general,
however, participants felt that there is no silver bullet
to Africa’s electricity deficit, and that central generation
and local generation are needed simultaneously.
For Africa to stay on the path to prosperity, Africans
must also have improved access to healthcare. In
many cases, the political will and public awareness of
health threats are present, but the health infrastructure
is lagging. Participants agreed that government, civil
society and business have an equally vital interest in
I can talk of hope more than success
stories.
Armando Emilio Guebuza, President of Mozambique
“
“
25. 23 | World Economic Forum on Africa
fighting HIV/AIDS and tuberculosis. Participants also
called for scaled-up partnerships to combat malaria
and tuberculosis.
The need for new ways of delivering health services is
desperate in many parts of Africa. “I can talk of hope
more than success stories,” said Armando Emilio
Guebuza, President of Mozambique. Specific
strategies for combating malaria include improving
communication between health authorities and
outreach workers, distributing mosquito nets
throughout affected areas and improving treatments.
All agreed on the desperate need to support research
into finding vaccines for both malaria and HIV.
Infectious Diseases Still a Major Cause of Death in Africa
Source: World Health Organization
35%
30
25
20
15
10
5
0
Malaria
HIV/AIDS
TB
Total AfricaTotal World Sub-Saharan Africa
Percentageofalldeaths
Finally, participants agreed on the necessity to
consolidate gains and move towards prosperity by
ensuring public ownership of government. At the
moment, there are only eight democracies in sub-
Saharan Africa, and several of those are considerably
flawed. “We need a debate in Africa about
governance,” said Mo Ibrahim, Chairman, Mo Ibrahim
Foundation, as well as Chairman, Celtel International,
United Kingdom. “We measure everything – why not
governance?”
Participants pointed to rampant corruption throughout
governments in the region and lamented a lack of
freedom of expression in many countries. But there
were several instances of hope. Though he has
battled censorship often, Editorial Cartoonist Zapiro,
Zaprock Productions, South Africa, personified the
potential for free speech in Africa when he showcased
his most controversial cartoons in front of many of the
region’s leaders in a WorkSpace session. “In Africa
there’s been tremendous movement towards
democracy,” concluded Cynthia Carroll, Chief
Executive, Anglo American, United Kingdom, and a
Co-Chair of the World Economic Forum on Africa.
“And that’s attracting foreign direct investment and
providing for further growth.”
We need a debate in Africa about
governance. We measure everything –
why not governance?
Mo Ibrahim, Chairman, Mo Ibrahim Foundation; Chairman,
Celtel International, United Kingdom
“ “In Africa, there’s been tremendous
movement towards democracy.
And that’s attracting foreign direct
investment and providing for further
growth.
Cynthia Carroll, Chief Executive, Anglo American, United
Kingdom; Co-Chair of the World Economic Forum on Africa
“ “
26. 24 | World Economic Forum on Africa
Raising the Bar in
the WorkSpace
The WorkSpace – the workshop with a difference –
draws out the collective intellect and creative capabilities
of participants to explore concrete opportunities for
improving the state of the world.
Participants of the series of four WorkSpace sessions at
this year’s World Economic Forum on Africa came
together to explore ways to tackle some of the
continent’s most critical issues: How can taboos that
restrict development be dealt with? What is Africa’s role in
addressing climate change? How can African countries
work together to become more competitive on a global
scale? How can technology be used to improve the
quality of education?
There is an elephant in the room.
Among the highlights of the WorkSpace was the candid
conversation on taboos and their role in hindering Africa’s
prosperity. Leaders from across sectors and industries
came together to address and solve the mystery of the
unspoken in the interactive session, “A Taboo on
Taboos”. The group was first greeted by Zapiro, Editorial
Cartoonist, Zaprock Productions, South Africa, and his
work on some of the region’s most controversial taboos,
including restrictions on freedom of speech by religious
groups, as well as HIV/AIDS. Participants worked in
teams to consider the ways these and other taboos can
be addressed, hanging their ideas on the WorkSpace’s
life-size elephant model to symbolically draw attention to
“the elephant in the room”.
Corruption, or more precisely the hypocrisy it can
generate, was raised by almost all groups as a significant
taboo slowing down Africa’s development. The teams
proposed better legislation and a strong legal system, as
well as new processes to
improve transparency, as
solutions. However,
participants also discussed
the importance of freedom
of speech and the
limitations of the law in
eliminating taboos. In
addition, they suggested
that existing awareness
campaigns need to be
strengthened, particularly for
the extractive industries,
with campaigns such as
“publish what you pay”. The
group’s closing conversation
revealed the deep concern participants share of the
impact of ignoring taboos, while also expressing a
renewed hope of surmounting them.
Is it hot in here or is it me?
Building on the growing
awareness of the
continent’s vulnerability to
climate change, the
WorkSpace session,
“Getting a Grip: Designing
Africa’s Response to
Climate Change”, provided
the platform for a critical discussion on leaders’ ideas for
action. The workshop began with a learning journey, in
which participants shared thoughts with some of the
world’s top experts on areas affected by climate change:
security and migration, water and agriculture, health, and
coastal areas and
infrastructure. Together
they explored the
urgency of the issue,
building up their
understanding of the
impact of an increase
in temperature on
Africa. They continued
their breakout discussions by looking at the most critical
impact areas and where action can be taken to make the
biggest difference. The facilitator pushed participants to
consider new ways to approach the challenge, drawing
out potential actions for changing behaviours, improving
policy frameworks, encouraging smarter investments and
optimizing risk management. Participants concluded that
there is less of a need for awareness-raising around the
issue than for an increase in the capacity of people to
adapt, suggesting the
pursuit of
“pragmatism, not
hysteria” to address
the sense of
powerless across the
continent. The group
also mentioned the
importance of regional and multistakeholder cooperation,
as well as the urgent need for strong economic incentives
that engage businesses for positive results.
Africa is hardest hit
by climate change
because of its high
vulnerability and
low capacity.
“
“
In other areas there’s
a sense that climate
change implications
are in the future, and
in Africa it’s now.
“
“
If we frame climate
change as a business,
we can change the
climate for business.
“ “Legislation goes down
the path of
suppression. Don’t be
afraid, try to get
different parts of
society to talk about
the issue. On all
taboos: freedom of
expression, freedom of
expression, freedom of
expression.
“
“
27. It is 2022 and your country has climbed 50 places
up the Global Competitiveness Index ranking ...
Following the release of
The Africa
Competitiveness Report
2007, business leaders
and policy-makers
taking part in the
workshop, “Raising the
Bar on Competitiveness
in Africa”, explored how
to work together to boost productivity and
competitiveness across the continent. To encourage fresh
ideas and thoughts on multistakeholder collaborations,
participants were asked to picture a future in which their
country has made significant progress on
competitiveness.
Following their
dynamic breakout
discussions,
participants came
together for a
conversation on the
areas that need
urgent attention in order to facilitate such development,
mentioning skills training, health policies with a focus on
HIV/AIDS, and stronger democratic institutions and
processes, among other points. The groups’ key
recommendations were scribed in a matrix that
highlighted threads and missing links, giving participants
the unique chance to explore outside their usual scope
and consider innovative ideas.
High tech for high quality education
In the interactive workshop, “Delivering on Education
through Technology”, leaders
from business and the
education sector engaged in
an exercise designed to
encourage new thinking on
ways to improve the quality of
education in the rural areas of
Africa by using innovations in
technology. In smaller groups,
participants were presented a scenario projecting them to
the year 2012, a time when there has been a significant
improvement in the quality of education in African villages.
The specific challenge posed to the teams was to
determine how they had achieved that transformation.
They were asked to outline the business plan for a
project involving new technology that had brought about
the improvement. Led by the facilitator, the group
identified the success factors that drove the educational
transformation of Africa through technological
innovations, a conversation that sparked real interest in
actions that can be taken today to reach such a future.
They emphasized the underlying need for community
buy-in and for solutions that are adapted to the capacity
of users and educators. Participants also agreed that the
characteristics of the technological tools themselves have
to be designed to
meet the local
needs and
environment, such
as the very low
power
requirements and
the ability to
download new content via wireless phone networks. The
session closed with a display of several new and available
technologies precisely aimed at increasing the quality of
education in rural locations, suggesting that the scenario
of the exercise may not be so far from reality.
Our ideas today could
lead to something very
positive for technology
in education.
“ “
We must give full
recognition to our
success – we
shouldn’t undermine
ourselves. However,
there are issues we
need to work on.
“
“
When you try to make
a quantum shift, you
have to ask: are we
being radical enough?
“ “
Education applies to
all people, not just
children, but also
farmers, parents,
leaders, everyone.
“
“
28. 26 | World Economic Forum on Africa
The World Economic Forum wishes to recognize the support of the following companies as Partners or
Supporters for the World Economic Forum on Africa:
Strategic Partners
ABB
Alcan
AMD
Audi
Barclays
Citi
DuPont
Goldman Sachs
HP
Intel
JPMorgan Chase
KPMG
Merck & Co.
Regional Partners
Absa
African Rainbow Minerals (ARM)
Eskom
Murray & Roberts
Nigerian National Petroleum Corporation (NNPC)
SABMiller
Sasol
Meeting Supporters
CNBC Africa
International Finance Corporation (IFC)
Magna Carta
Service Providers
Telkom
Transnet
The World Economic Forum also thanks CNBC Africa as host broadcaster, and City Year for its support.
Acknowledgements
29. 27 | World Economic Forum on Africa
Contributors
Peter Torreele is Managing Director of the World Economic Forum. Haiko Alfeld is Director, Head of Africa, at the
Forum. The World Economic Forum on Africa was under his direct responsibility, with Yemi Babington-Ashaye,
Associate Director, Global Leadership Fellow, Africa, and Stéphane Oertel, Global Leadership Fellow, Africa. Nadine
Bonard, Senior Specialist, Events, was the meeting Coordinator.
Samantha Tonkin, Senior Media Manager at the World Economic Forum, worked with Alejandro Reyes, Dianna
Games and Benjamin Skinner to produce this report.
The World Economic Forum would like to express its appreciation to the summary writers for their work at the World
Economic Forum on Africa. Session summaries are available at www.weforum.org/africa/summaries2007
Editing: Fabienne Stassen Fleming, Senior Editor, and Janet Hill, Editor
Design and Layout: Kamal Kimaoui, Associate Principal, Production and Design
Photographs: Eric Miller and Matthew Jordaan
The World Economic Forum would like to recognize the support of PricewaterhouseCoopers in compiling data and
statistics for this report.
30.
31. The World Economic Forum is an independent
international organization committed to improving
the state of the world by engaging leaders in
partnerships to shape global, regional and
industry agendas.
Incorporated as a foundation in 1971, and based
in Geneva, Switzerland, the World Economic
Forum is impartial and not-for-profit; it is tied to
no political, partisan or national interests.
(www.weforum.org)
