AFRICAN UNION
UNION AFRICAINE
UNIÃO AFRICANA
STATEMENT BY
H.E. DR. MAXWELL M. MKWEZALAMBA
COMMISSIONER FOR ECONOMIC AFFAIRS
AFRICAN UNION
DELIVERED DURING THE OPENING SESSION OF THE
AFRICAN UNION PRTIVATE SECTOR FORUM
CAIRO, EGYPT
28 NOVEMBER 2006
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Your Excellency Ambassador Taher Farahat
Assistant Deputy Minister for African Affairs of the Arab
Republic of Egypt
Prof. Dr. Zainab Safar, Head of Business Development Centre,
National Council of Women
Dr. Anamy Asfour, President of the Egyptian Business Women, our
Distinguished Host
Members of the African Federation of Egyptian Women Association
Your Excellencies Ambassadors and Members of the Diplomatic
Corps
Representatives of Regional Organizations
Distinguished Members of the Private Sector
Ladies and Gentlemen,
I am very delighted to address this august African Union Private Sector
Forum in this wonderful and historical city of Cairo. I would like, on behalf
of the Chairperson of the African Union Commission (AUC), His
Excellency Professor Alpha Oumar Konare, and indeed on my own
behalf, to begin by thanking each one of you for coming to attend this
very important Forum. I wish to extend sincere gratitude and appreciation
to the Government and People of Egypt for hosting the Forum; Dr.
Asfour and the African Federation of Egyptian Women Association, for
the untiring efforts and commitment in ensuring that the Forum is a
success; and everyone else who, in one way or the other, helped in
making this Forum possible.
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Please allow me to give a brief background to the idea behind this
Forum. During the Meeting of African Heads of State and Government
held in Abuja, Nigeria, in January 2005, the African Union (AU) Private
Sector Forum was institutionalized as part of the AU structures. This
Forum, to be held annually, serves as an interface between the African
Union policy makers and the private sector. It aims at facilitating and
mobilizing the efforts of the private sector to support the implementation
of the AU Strategic Plan and New Partnership for Africa's Development
(NEPAD), and hence spear-heading continental integration and Africa's
integration into the global economy; networking business organizations
to ensure a harmonized approach to implementing the Strategic Plan;
creating opportunities for businesses to dialogue with governments at the
highest level; facilitating the exchange of business information and
sharing experiences; and promoting the development of micro, small,
and medium-scale enterprises (MSMEs).
It is my conviction that poverty eradication on the continent and the
achievement of the Millennium Development Goals (MDGs) will not be
possible without the private sector being at the forefront. The majority of
jobs in African countries are created by the private sector, as is the case
in most other parts of the world. You will agree with me, therefore, that
the empowerment of the private sector will be the fastest route to poverty
eradication and attaining the MDGs.
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The best way to empower the private sector is to engage the actors in
productive public-private dialogue with a view to creating a business
friendly climate. A business friendly climate is one in which the cost of
doing business is low, investments are secure, the playing field is level,
the cost of investment is low while the returns on investment are high,
and market access is relatively easy. The creation of such an investment
climate will require reforms in several areas, including macroeconomic
policies, regulation, the justice system, competition policy, trade policies,
as well as infrastructure development.
In recognition of the role of the private sector in the socio-economic
development of the continent and cognizant of the fact that the
aforementioned reforms are key to the creation of a vibrant private
sector, we have witnessed efforts by almost all Governments on the
continent to embark on various types of policy reform, albeit at different
levels of intensity. Many of these countries continue to liberalize their
markets, improve their legal and institutional frameworks, offer incentives
and guarantees, and encourage open competition. Some notable
examples Mozambique where, according to the World Bank, the
adoption of a new investment code has resulted in cutting the transfer
tax for property from 10% to 2.4%; Burkina Faso, where the creation of a
one-stop shopping concept for new business has resulted in cutting the
time required to start a new company by nearly a third while company
registration costs have dropped by 60%; Mali, where registration fees
have been eliminated and in Kenya, where the cost of starting up a
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business has gone down drastically owing significant reduction in the
number of required business licenses.
At the continental level, the African Union Commission will continue to
encourage and guide Member States of the African Union to continue on
this path of reform with a view to making Africa an even better place for
private sector business activity. We will continue to strategise on the way
forward for the private sector while we listen to your views through fora
such as this one.
The Investment Climate Facility (ICF), a partnership between African
governments, the private sector and donor agencies, is another laudable
initiative focused exclusively on improving the investment climate and
eliminating barriers to growth across Africa. It finances investment
climate reforms on the continent by leveraging private sector and donor
money. The ICF is committed to improving dialogue between
government and business, improving Africa’s image as an investment
destination, helping African governments to formulate business-friendly
policies, legislation and regulations as well as improving the quality and
capacity of institutions administering those regulations.
Excellencies
Distinguished Ladies and Gentlemen
The selection of the theme for this Forum – “Empowering the African
Private Sector and Promoting MADE in AFRICA” – is by no means an
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accident. In this era of globalization, deeper integration of Africa into the
global economy requires that we empower our private sector to be on a
strong footing to stand up to the challenges of the twenty-first century.
High level of efficiency and productivity is required for our private sector
to be able to compete effectively on the global arena. The AU recognizes
that this is a daunting task. However, with the current level of
commitment, both at the level of the AUC and at the level of
governments of individual Member States of the African Union, the
African private sector will increasingly enjoy the necessary support it
desires.
Such support does not only entail the creation of an enabling
environment, but also support in the form of generating demand for
locally made products, for both domestic, regional and international
markets. That demand can only be created if our products are efficiently
produced, with competitive prices and of high quality, and meeting the
necessary best practice standards. The idea behind promoting “Made in
Africa” is, therefore, meant to ensure that African products are of the best
quality and are competitive.
The time has come for us, African producers, to show pride in what we
have to offer to our customers. The old mentality of “whatever is
European or American is good quality” and “whatever is locally produced
is inferior quality” must be dispensed with. I consider this as one of the
toughest challenges facing the local private sector. Changing such a
mindset will require intensive information, education and communication
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(IEC) campaigns at all levels of society. Every African has a role to play
in this. African governments will need to take the initiative to design
appropriate strategies to get rid of this old dispensation. Adoption of
international best practice on standards and quality of our products and
services will inevitably go a long way in changing this old adage. The
African consumer needs to realize that patronizing the local producer is a
direct contribution to demand, and hence economic growth, employment
creation and poverty eradication. The private sector players must also be
ready to invest more in, not only marketing campaigns, but also paying
more attention to issues relating to product competitiveness such as
quality. Through fora such as this one, the African private sector actors
should share experiences, in this regard.
Excellencies
Distinguished Ladies and Gentlemen
In the next three days, various topics, all of which have been carefully
selected, will be discussed. As articulated by Dr. Asfour, these include
"Promotion of Intra-Africa Trade"; "the Role of the Media in Promoting
Made in Africa"; "the Role of African Women Entrepreneurs and the
Informal Sector"; "the Use of Science and Technology as a Tool for
Diversifying and Enhancing Competitiveness of African Products";
"Investment Opportunities in Africa"; "Financing the African Private
Sector"; "Supporting the Development of Small and Medium-Scale
Enterprises (SMEs) and the Role of Micro-Finance in Africa"; "Promoting
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Public-Private Partnerships"; and "the Economic Empowerment of the
African Private Sector, including Women".
I invite each one of you to actively participate in the discussions. These
discussions will culminate in the elaboration of a private sector
development strategy and action plan, which will serve as a blueprint for
private sector development on the Continent. It is important that, as
private sector actors, you re-assert your role as the engine for
sustainable socio-economic growth and development in Africa. I also
appeal to you all to use this opportunity to network, exchange information
and share experiences. This is a great opportunity for all of you that must
be utilized to the fullest!
I thank you for your kind attention and wish the Forum great success.
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