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World Economic Forum on Africa 2006

World Economic Forum on Africa closes with growth plan
The 16th World Economic Forum on Africa has closed with hundreds of political and business leaders outlining commitments and ideas to scale up successes already achieved on the continent. “The critical challenge is to do things we know work and build the capacity to carry them out,” said South African President Thabo Mbeki.

The three-day meeting was held under the theme ‘Going for Growth”, and Maria Ramos, Group Chief Executive of Transnet noted that “as Africans we’re committed to growth because it is necessary to eradicate poverty and unemployment on our continent.”

At the end of the closing plenary, Peter Torreele, Managing Director of the World Economic Forum, highlighted some of the achievements and commitments participants had made:

• Promoting Investment through the Investment Climate Facility
• Ensuring Access to Education through the NEPAD e-Schools Initiative
• Building Social Infrastructure
• Promoting Social Entrepreneurship by
• Fighting Corruption

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Business supports suppliers’ fight against HIV/AIDS in workplace
Business leaders at the World Economic Forum on Africa have committed to use their HIV/AIDS workplace programmes to help small and medium sized enterprises (SMEs) establish their own programmes. "HIV/AIDS workplace programmes are a business imperative and while many large organizations are involved, smaller firms often don’t have the time or resources to do the same," said Brian Smith, HR Director for Volkswagen South Africa. “It makes sense for big firms to extend our programmes through to our suppliers and SMEs,” he continued.

Chris Low, CEO Standard Chartered Bank SA added to the discussion by saying that “if you’ve got the capacity, you should expand outside your own workplace. When you’re a large organization, you can share best practices because you have the momentum to help others and this is why we’ve stepped behind the Forum’s Global Health Initiative on this project.”

The public-private initiative has the potential to reach millions more people employed in small businesses.

Photos I Session summaries




Massive media interest in the World Economic Forum on Africa
The 16th World Economic Forum on Africa has attracted unprecedented media interest with BBC World and CNBC hosting televised debates at the Meeting. The BBC World Debate: ‘The Future of African Growth’, part of the official programme and moderated by Nik Gowing, BBC’s main presenter, can be seen on Saturday 3 June at 14.10 CET and will be repeated on Saturday at 21.10 CET, and Sunday 4 June at 09.10 CET and 19.10 CET.

CNBC’s Global Players ‘Growing Africa: Whose Business Is it?’ moderated by Sabine Christiansen, Germany’s top talk show host can be seen in the USA on 4 June at 22.00 EST, on CNBC Europe on 4 June at 20.00 CET, and on 5 June at 22.00 CET (19.00 CET on the German feed), on CNBC Asia on 4 June at 20.30 Singapore time and 5 June at 13.00 Singapore time.

Outcomes




Thursday 01 June

African leaders tackling continent’s biggest challenges
African political and business leaders have taken stock of the factors powering unprecedented growth levels on the continent while looking for new ways to accelerate this growth. Obiageli Katryn Ezekwesili, Minister of Solid Minerals of Nigeria, made it clear that if economic growth and macroeconomic stability does not translate into job creation and benefits for citizens, the “bad guys” could again take charge and seize the political initiative.

Trevor Manuel, Minister of Finance of South Africa, said that the task for the future was to “build strong governments” that create an enabling environment for private enterprise to flourish. He also called on African states to fight the challenges together; “if we are not pan-African, we shall all fail together,” he said.

Gobind Nankani, Vice-President for Africa, World Bank, Washington DC pointed out that while all African nations are clear on primary education, they need to focus more on secondary and tertiary. He went further to say that there is a need to retain skilled professionals by creating environments from which they will not emigrate.

Session summary




Business leaders announce new alliance against chronic hunger
Business leaders have united to launch the first ever National Council of the Business Alliance Against Chronic Hunger. “Business can play an important role in addressing the root causes of chronic hunger,” said William Hickey, CEO of Sealed Air Corporation. “We are ready to commit our experience and expertise to help build solutions to this problem.”

This diverse group of business leaders, politicians and representatives from civil society will work together to create innovative and scalable market-based solutions to the persistent problem of chronic hunger in Kenya.

“Chronic hunger is a very real problem in the parts of the world where we operate, and for this reason Unilever has joined the Business Alliance Against Chronic Hunger,” said Diego Bevilacqua, Group Vice-President of Africa, the Middle East and Turkey for Unilever. “By combining our knowledge and interests with those of our partners, we can catalyse concrete actions to reduce chronic hunger and poverty in Kenya,” he said.

Press release I Session summary




Africa Investment Climate Facility launched at Forum on Africa
Political, business and civil society leaders at the World Economic Forum on Africa have launched the African Investment Climate Facility (ICF) tasked with making Africa a better place in which to do business. “We will be able to show that Africa is ready to create a climate that is favourable to investment in partnership with governments, business and NGOs,” said the former president of Tanzania, Benjamin William Mkapa, who will Co-Chair the ICF.

An independent trust launched in 2005 that is to dissolve in 2012, the ICF will focus on property rights and contract enforcement, reducing red tape, taxation and customs reform, development of financial markets, infrastructure facilitation, labour market restructuring, the promotion of competition, and the control of corruption and crime.

“This is Africa’s moment not of greatest need, but of greatest opportunity,” said Niall FitzGerald, Chairman of Reuters, who will also Co-Chair the ICF. He said it would be permanently owned and led by Africans and would be launched in countries participating in the African Peer Review Mechanism.

Press release




Africa debates terms for new China and India partnership
African leaders debated the conditions for their ever-growing partnerships with China and India. “We Africans have decided that we want a new partnership so they contribute to Africa’s development with the principles of ownership, responsibility and mutual accountability,” said Firmino Mucavele, Chief Executive, NEPAD Secretariat, South Africa, in a plenary session of the World Economic Forum on Africa.

Trade between China and India is nothing new, noted Syamal Gupta, Chairman of Tata Industries, India, however it has quadrupled in the past five years from US$ 10 to 40 billion.

Mandisi Mpahlwa, Minister of Trade and Industry of South Africa, stressed that Africa must capitalize on the commodities boom driven by Chinese and Indian demand to “establish new platforms of economic competitiveness to build new capacities.”

Mark Moody-Stuart, Chairman of Anglo-American said that growing standards of transparency must be maintained, especially with regard to natural resources.

Press release I Session summary




Did the ‘Year of Africa’ deliver?
Participants in this session focused on the debate between aid and trade as an engine of growth. Rather than a limited 12-month focus on Africa, Linah Mohohlo, Governor of the Bank of Botswana, agreed with many participants that there ought to be a “Decade of Africa” till 2015 by which time the Millennium Development Goals are due to be reached.

Reuel Khoza, Chairman, Nedbank Group, noted that “business believes African countries should paddle their own canoes – they need to develop the kinds of structures that allow would-be investors to invest.” He highlighted some of the continent’s success stories, for example an e-schools project to fast track learning that has spread to 21 countries.

Baroness Valerie Ann Amos, Leader of the House of Lords of the United Kingdom, noted that “the UK government believes aid should not be tied, but should take into account developing countries’ priorities.” She called for greater flexibility amongst donor nations on their requirements for granting and administering aid.

Session summary I Cartoons




Global Health Initiative urges new healthcare systems partnership
The Forum’s Global Health Initiative has urged business to use its resources and expertise in partnership with the public sector to improve sub-Saharan Africa’s weak healthcare systems. It launched a White Paper, ‘From Funding to Action: Strengthening Healthcare Systems in Sub-Saharan Africa’, at the World Economic Forum on Africa in Cape Town. “Improving the fundamental capacity to provide health services is vital for breaking down the vicious cycle of disease and poverty that destroys the lives of millions of Africans,” said Gary Cohen, President of BD Medical.

If turned into action, some of the strategic interventions identified in this paper could contribute to improving access to health for millions of Africans.

“This new White Paper identifies clear, specific areas where businesses can use their skills and resources in partnership with the public sector to quickly affect change and make a real difference to people’s lives,” said Francesca Boldrini, Director of the World Economic Forum’s Global Health Initiative.

“I applaud the GHI’s leadership in this area and urge businesses to deploy their skills and resources, in partnership with the public sector, toward this achievable goal,” Gary Cohen said.

Download the White Paper I Weblog I Press release I Session summary I Cartoons




Wednesday 31 May

South African Social Entrepreneur of the Year awarded
South Africa’s First Lady Zanele Mbeki, presented Sunette Pienaar, Founder of Heartbeat, with the Schwab Foundation’s South African Social Entrepreneur of the Year award. Sunette was honoured for her “exemplary contribution to mobilize communities to care and protect their children whose parents have died,” the Schwab Foundation said.

Sunette Pienaar founded Heartbeat in 2000 after leaving her position as a minister in the Dutch Reformed Church. Heartbeat has since mobilized communities in six provinces (Gauteng, Mpumalanga, North West, Limpopo, Free State and Eastern Cape) to care directly or indirectly for some 6,000 orphans and vulnerable children. Heartbeat assists these children in accessing water, electricity, housing, schooling and government grants where applicable. All services are delivered through local community committees.

Press release I Schwab Foundation I Programme I Cartoons




African leaders endorse growth as the new strategy—
African leaders opened the World Economic Forum on Africa with a resounding call for economic growth to be the continent’s new strategy. “We come to this conference in an atmosphere of hope if we look at the growth figures,” said South African President Thabo Mbeki, referring to rates that have climbed above 5%.

“Should growth be the new strategy for Africa?” asked Jakaya Kikwete, President of Tanzania, “the answer is emphatically yes.” William Easterly, New York University Professor, said that the traditional practise of doubling aid to Africa was not the key to greater prosperity. “Growth in Africa is not going to come from aid but from private capital inflows and trade,” he said.

Growth rates have increased thanks in large part to greater peace and stability on the continent, noted Armando Emilio Guebuza, President of Mozambique.

All three African presidents on the panel agreed that agriculture was a key sector to invest in to promote sustainable growth.

Issues in Depth I Programme I Session summary




African business brainstorms risk management strategies
Participants in an interactive WorkSpace session at the World Economic Forum on Africa discussed global risks that are most salient to Africa – terrorism, oil price shocks, potential pandemics, and climate change. They devised potential worst-case scenarios for each and then proposed ways to mitigate their impact.

The discussion amply demonstrated how risks are linked, said Sean M. Cleary, Managing Director, Strategic Concepts, South Africa. “It's almost impossible to separate one risk and think of it in isolation. In a highly interconnected world, these risks manifest themselves in highly systemic ways.”

“Government needs to create a policy framework to plan for climate change, while it is the responsibility of business to respond to it,” was the consensus from a discussion group on the topic.

Participants who focused on terrorism said improvement of governance and better deployment of oil revenues to alleviate social conditions would go a long way towards mitigating this risk.

Issues in Depth I Programme I Session summary




Africa optimistic about future as World Economic Forum on Africa starts
More than half (52%) of Africans are optimistic about the future, according to a Voice of the People poll released at the start of the World Economic Forum on Africa (31 May-2 June). Africans are more hopeful than the rest of the world (48%) that 2006 will be better than 2005.

More than 700 leaders from business, government, civil society and academia, representing more than 40 countries, are convening at the 16th World Economic Forum on Africa meeting being held in Cape Town, South Africa, on an agenda entitled ‘Going for Growth’.

Billed as the 'Davos of Africa', four heads of state, top ministers and senior business leaders of African companies and multinationals active in Africa will review Africa’s unprecedented growth path.

Participants will roll up their sleeves and get to work in the ‘Davos WorkSpace’, engage in live television debates as well as interactive sessions on a range of issues designed to generate action plans for the coming year.

Press release I Issues in Depth I Programme I Cartoons





Co-chairs
Syamal Gupta, Chairman, Tata International, India
Jim Goodnight, Chief Executive Officer, SAS, USA
Maria Ramos, Chief Executive Officer, Transnet, South Africa
Charles Soludo, Governor of the Central Bank of Nigeria

For more information, please contact:
E-mail: africa@weforum.org
Tel: +41 (0)22 869 1481
Fax: +41 (0)22 786 2744