Africa: open for honest business
Richard Mantu
2 June 2005
It is possible to do business in Africa without being involved in corrupt activities.
This was the message from the leaders of three major multinational corporations at the opening of the World Economic Forum's Africa Economic Summit 2005.
The three-day summit kicked off in Cape Town on Wednesday with leaders from business, government and civil society rallying support for partnerships to address major developmental challenges facing the continent.
Over 660 delegates from 42 countries - 28 of them African countries - are in attendance, among them five heads of state, including President Thabo Mbeki.
Lazarus Zim, CE of Anglo American in SA, told journalists at the start of the summit that he was "a living witness that it's possible to do business in Africa without corruption", citing his 10 years' experience on the continent.
Concurring with Zim and using his in this regard, Niall FitzGerald, chairperson of Reuters UK - boasting 30
years' experience in Africa - echoed Zim's comments, saying: "Once you declare yourself being above corrupt practices, people already shy away from involving you in corrupt practices.
FitzGerald said that good corporate governance was key to business conducting itself in a way that sent a stern message against graft.
Other business leaders agreed that since African leaders had committed themselves to the African Union's New Partnership for Africa's Development (Nepad), corruption had been on the decrease.
"Corruption is dropping in Africa," said Graham Mackay, CE of SABMiller and co-chair of the summit. "There's more of it [being] caught and stopped than of it starting."
Mackay said the message that needed to be sent to other business leaders outside of the forum was that Africa - with about 800 million consumers and a growth rate of five percent - presented viable investment opportunities.
What business leaders had to do, he said, was to build capacity
for African governments to be able to manage aid from developed nations.
"Business leaders can help African governments in understanding what is needed in creating a conducive environment to attract investment."
Mackay added that to increase investment in Africa, business leaders had to do business "well and invest in a small supply chain to have a multiple effect in small businesses on the continent."
Zim said there were vast opportunities for businesses to take advantage of in areas such as infrastructure development, transport and health.
Source: BuaNews
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