The current situation in India, popular protests against corruption led by Anna Hazare, has set me thinking.
I think, particularly in a country as diverse and large as India, inclusive growth requires inclusive democracy. The wide spread protest against corruption have shown that India has an appetite for participatory democracy, and given the sheer size and scale of the Indian state ‘people power’ might be necessary to keep it in check.
If nothing else this incident has shown once again how important tackling corruption is to a country’s development, Moody’s the ratings agency says that ‘cases of corruption and the recent scandals have impaired business environment in India’. Tackling this is important before it has an impact on India’s ability to attract international business and investment and further damages the countries reputation as a safe place to do business.
Tuesday, 6 September 2011
Monday, 8 August 2011
Nigeria: a county of tremendous potential
I was honoured to be invited to address the Business Environment Roundtable on the 2011 Nigerian Economic Road Map by the Lagos Chamber of Commerce and Industry last month to provide an international perspective to their discussions of Nigeria's development plans.
Nigeria is a county of tremendous potential that should be leading in Africa and the world, a population of 150 million people all of whom are potential entrepreneur as anyone that knows the country will be able to testify to. The Current Administration aims to make Nigeria on the world's 20 largest countries by 2020, this is achievable. Indeed, Goldman Sachs believes that with the right reforms, Nigeria would be the world's fifteenth largest economy by 2050 and Standard Chartered the largest economy in Africa by 2013.
Nigeria is making good progress - the recent elections have solidify the image of Nigeria as a working and fair democracy, even Britain's traditionally negative press could find little to complain about. Nigeria's work in securing peace and democracy in the region, particularly its vocal defence of the principal of Democratic Succession in Cote d'Ivoire, has helped elevate the county to new levels on the international stage.
The key challenge for Nigeria to tackle if it is to meet its potential is its infrastructure deficit. The Central Bank estimates that Nigeria needs to invest $100billion (about N15 trillion) over the next 10 years to fill the deficit. In the power sector. Nigeria expends about $13 billion every year providing power from diesel generators when only about
$10 billion per year is required in investment over the next few years to develop our generation, distribution and transmission capacities. Generating power from generators adds more than 40 percent to the cost of goods and services in Nigeria.
Given the scale of the investment required the only truly viable way of meeting the need is though, public-private partnership. Government needs to work closely with business, both national and international, to ensure that the funding to tackle this deficit is met.
Nigeria is going to remain a country of tremendous opportunity for investor for foreseeable future and I would encourage, everyone to look at the opportunities there for their own businesses.
Nigeria is a county of tremendous potential that should be leading in Africa and the world, a population of 150 million people all of whom are potential entrepreneur as anyone that knows the country will be able to testify to. The Current Administration aims to make Nigeria on the world's 20 largest countries by 2020, this is achievable. Indeed, Goldman Sachs believes that with the right reforms, Nigeria would be the world's fifteenth largest economy by 2050 and Standard Chartered the largest economy in Africa by 2013.
Nigeria is making good progress - the recent elections have solidify the image of Nigeria as a working and fair democracy, even Britain's traditionally negative press could find little to complain about. Nigeria's work in securing peace and democracy in the region, particularly its vocal defence of the principal of Democratic Succession in Cote d'Ivoire, has helped elevate the county to new levels on the international stage.
The key challenge for Nigeria to tackle if it is to meet its potential is its infrastructure deficit. The Central Bank estimates that Nigeria needs to invest $100billion (about N15 trillion) over the next 10 years to fill the deficit. In the power sector. Nigeria expends about $13 billion every year providing power from diesel generators when only about
$10 billion per year is required in investment over the next few years to develop our generation, distribution and transmission capacities. Generating power from generators adds more than 40 percent to the cost of goods and services in Nigeria.
Given the scale of the investment required the only truly viable way of meeting the need is though, public-private partnership. Government needs to work closely with business, both national and international, to ensure that the funding to tackle this deficit is met.
Nigeria is going to remain a country of tremendous opportunity for investor for foreseeable future and I would encourage, everyone to look at the opportunities there for their own businesses.
Wednesday, 13 July 2011
Commonwealth Eminent Persons Group
We appreciate the work the Eminent Persons Group has done on looking at the future of the Commonwealth, particularly there recognition of the need to Commonwealth Trade Ministers meeting. However, I have concerns that some of the key issues are not being addressed, particularly the role of the Commonwealth in advancing economic and social development.
Commonwealth Heads of Government specifically targeted these goals as new priorities in their 1997 Edinburgh Commonwealth Economic Declaration "Promoting Shared Prosperity", and set up the Commonwealth Business Council and biannual Commonwealth Business Forum to advance this. As they concluded in their 1997 Declaration, the growth and investment agenda requires "vigorous" collective efforts if it is to be advanced.
I would encourage the EPG to include a focus on 3 specific areas, in their final draft.
There should be specific mention in the proposed Commonwealth Charter of – promoting economic prosperity and growth through joint business and government partnerships. This would result in the creation of millions of new jobs, SMEs and cross Commonwealth investment which would be of benefit to all commonwealth citizens.
A clear formal cooperation mechanism between on the one hand the Secretariat, and on the other the CBC and other similar, large Commonwealth organisations should be included in the final draft. In order to deliver improved technical assistance and development programmes to support the economic development focus.
And that the achievements of CBC and CBF be formally recognised by EPG, CBF has become a uniquely valued and important part of the Heads' programme and is now seen as an integral part of CHOGM. CBC itself has become the second largest Commonwealth organisation, without any core government funding, and has raised some £30m for its own work since inception. In the last two years, 25 member state governments have worked directly with the CBC on a range of investment promotion and policy exercises linked to SME development, infrastructure, energy, and health and job creation.
I strongly support the EPG’s focus on political good governance. However, the EPG report is currently incomplete and unbalanced as it lacks a serious treatment of economic development issues.
I hope the EPG will take these points to heart, making the Commonwealth Relevant for today means making it focus on issues that are on the minds of Heads of Government, day to day. Namely, job creation, investment, business development and economic growth as well as the Good Governance and Human Rights. The Commonwealth should give equal focus to both governance and economic as they are 2 sides of the same coin.
Commonwealth Heads of Government specifically targeted these goals as new priorities in their 1997 Edinburgh Commonwealth Economic Declaration "Promoting Shared Prosperity", and set up the Commonwealth Business Council and biannual Commonwealth Business Forum to advance this. As they concluded in their 1997 Declaration, the growth and investment agenda requires "vigorous" collective efforts if it is to be advanced.
I would encourage the EPG to include a focus on 3 specific areas, in their final draft.
There should be specific mention in the proposed Commonwealth Charter of – promoting economic prosperity and growth through joint business and government partnerships. This would result in the creation of millions of new jobs, SMEs and cross Commonwealth investment which would be of benefit to all commonwealth citizens.
A clear formal cooperation mechanism between on the one hand the Secretariat, and on the other the CBC and other similar, large Commonwealth organisations should be included in the final draft. In order to deliver improved technical assistance and development programmes to support the economic development focus.
And that the achievements of CBC and CBF be formally recognised by EPG, CBF has become a uniquely valued and important part of the Heads' programme and is now seen as an integral part of CHOGM. CBC itself has become the second largest Commonwealth organisation, without any core government funding, and has raised some £30m for its own work since inception. In the last two years, 25 member state governments have worked directly with the CBC on a range of investment promotion and policy exercises linked to SME development, infrastructure, energy, and health and job creation.
I strongly support the EPG’s focus on political good governance. However, the EPG report is currently incomplete and unbalanced as it lacks a serious treatment of economic development issues.
I hope the EPG will take these points to heart, making the Commonwealth Relevant for today means making it focus on issues that are on the minds of Heads of Government, day to day. Namely, job creation, investment, business development and economic growth as well as the Good Governance and Human Rights. The Commonwealth should give equal focus to both governance and economic as they are 2 sides of the same coin.
Thursday, 2 June 2011
China and the Commonwealth
I was delighted to return to Beijing in May to Launch the Commonwealth Business Forum 2011 to the Chinese Market. China will be an important player in this year’s Forum given Perth’s, the host city, resource development with the country and Commonwealth’s African Members increasing relationships with Beijing. We hope the Forum can be a stepping stone to introducing Chinese companies and investment to some of the Commonwealth less well known Members.
While there I was honoured to be invited to address the China Council for the Promotion of International Trade’s annual Chinese Enterprises Outbound Investment Conference. This was the first time the Commonwealth was represented at the Conference and I was delighted to have the opportunity to introduce the 1000 plus delegates to the opportunities available in the association.
Ensuring the Commonwealth’s myriad opportunities are well recognised in China is essential given the scale of the countries overseas investment, in 2009 Chinese Companies invested US$56.3 billion dollars abroad; this was 3125 investments to overseas companies, in 129 countries. As China continues its ‘Going Global’ policy it is essential that the Commonwealth gets its share of this increasingly large pie.
While there I was honoured to be invited to address the China Council for the Promotion of International Trade’s annual Chinese Enterprises Outbound Investment Conference. This was the first time the Commonwealth was represented at the Conference and I was delighted to have the opportunity to introduce the 1000 plus delegates to the opportunities available in the association.
Ensuring the Commonwealth’s myriad opportunities are well recognised in China is essential given the scale of the countries overseas investment, in 2009 Chinese Companies invested US$56.3 billion dollars abroad; this was 3125 investments to overseas companies, in 129 countries. As China continues its ‘Going Global’ policy it is essential that the Commonwealth gets its share of this increasingly large pie.
Tuesday, 10 May 2011
Namibia & SADC
I was lucky enough to visit Namibia earlier this month and call on the President, HE Hifikepunye Pohamba, to discuss CBC’s plans for the year. Namibia is a great country to visit and one that holds good personal memories for me – I was there in the late 80s and 90s running a special program on management development during the democratisation process.
I was delighted to drive through green fields and see firsthand the level of agricultural development the country has achieved – Namibia’s progress since I was last there is most impressive. President Pohamba is proud of the progress his country has made and is keen to continue pushing forward in key sectors – he highlighted education and youth unemployment as key challenges for the coming year.
The President was also keen to highlight the importance of SADC to Southern Africa’s regional economy. President Pohamba is the 2011 Chair of SADC and has assigned himself the key task of strengthening regional infrastructure projects to help move the region closer to a single market.
It is in this capacity we have invited him to address the Africa Business Forum 2011 in London in June. This year’s ABF has a strong SADC focus and addresses the theme ‘Regional Integration and Drivers of Growth’. The President will deliver the opening address at the Forum and will be supported by Ministers from the region and Dr Tomaz Augusto Salomão, Executive Secretary of SADC.
I was delighted to drive through green fields and see firsthand the level of agricultural development the country has achieved – Namibia’s progress since I was last there is most impressive. President Pohamba is proud of the progress his country has made and is keen to continue pushing forward in key sectors – he highlighted education and youth unemployment as key challenges for the coming year.
The President was also keen to highlight the importance of SADC to Southern Africa’s regional economy. President Pohamba is the 2011 Chair of SADC and has assigned himself the key task of strengthening regional infrastructure projects to help move the region closer to a single market.
It is in this capacity we have invited him to address the Africa Business Forum 2011 in London in June. This year’s ABF has a strong SADC focus and addresses the theme ‘Regional Integration and Drivers of Growth’. The President will deliver the opening address at the Forum and will be supported by Ministers from the region and Dr Tomaz Augusto Salomão, Executive Secretary of SADC.
Wednesday, 27 April 2011
Opportunities in Zambia
It was a pleasure to be in Zambia a couple of weeks ago, it is a county I have visited may times over my career and one I have always enjoyed my stays in. I was in Livingston for the Annual meeting of the Zambia International Business Advisory Council with President Banda. It was great to hear about the progress Zambia has made over the last decade since the council was set up. Zambia, last year, had the highest growth rate in Africa and the 25 highest in the world, Zambia is now one of the largest copper producers in the world and last year increased its output at a rate higher then both Chilli and China. The Country’s GDP per Capita has now reached lower middle income levels. The ZIBAC board members were universally impressed worth the progress the country has made and at how well it is doing. One of the main recommendations to President Banda was that he should increase the money spent on making sure the world knows about Zambia’s successes and possibilities – as you only need tell a bad news story once for it to be heard, but good news needs to repeated again and again…………
Following the ZIBAC meeting we held the first Zambia Investment Forum, which we co-organised with the Zambia Development Agency. The Forum brought together 50 international business leaders and investors with local project holders and government leaders to forge new partnerships and help increase the involvement of the international private sector in Zambia’s economy. 3 MoUs we signed at the Event.
The President told me that his government is stepping up its efforts to tackle its skills and training shortages in the population and recognises this can only be done in partnership with the private sector – so this will be a thriving investment opportunity over the coming years as well as good opportunities in Agriculture, Tourism and Mining.
Zambia is a great investment destination and I would encourage investors to look closely at the opportunities available there.
Following the ZIBAC meeting we held the first Zambia Investment Forum, which we co-organised with the Zambia Development Agency. The Forum brought together 50 international business leaders and investors with local project holders and government leaders to forge new partnerships and help increase the involvement of the international private sector in Zambia’s economy. 3 MoUs we signed at the Event.
The President told me that his government is stepping up its efforts to tackle its skills and training shortages in the population and recognises this can only be done in partnership with the private sector – so this will be a thriving investment opportunity over the coming years as well as good opportunities in Agriculture, Tourism and Mining.
Zambia is a great investment destination and I would encourage investors to look closely at the opportunities available there.
Wednesday, 6 April 2011
Mozambique
I was very Grateful to have the opportunity to catch up with President Armando Guebuza of Mozambique, it was a good meeting covering many different things. Mozambique is a country CBC has a strong relationship with, and I a personal one, I have sat on the President's Advisory Council for several years now.
We discussed the challenges that President Guebuza's Government faces, particularly the recovery from the financial crisis, that's impact is still being felt in Mozambique and a growing skills shortage in the Country. The President highlighted transport infrastructure as one of his key priorities for the coming years, and was clear to point out the importance of working in partnership with the Private Sector and international agencies to deliver projects.
He was keen to highlight successful projects in Mining and Agriculture that are coming steam shortly, and show the plentiful opportunities that remain in these sectors for international investors with an interest. I was also delighted that President Guebuza has accepted our invitation to speak at the Commonwealth Business Forum to be held in Perth, where he will also chair a roundtable focusing on enhancing partnerships between the mining community in Mozambique and Australia.
We discussed the challenges that President Guebuza's Government faces, particularly the recovery from the financial crisis, that's impact is still being felt in Mozambique and a growing skills shortage in the Country. The President highlighted transport infrastructure as one of his key priorities for the coming years, and was clear to point out the importance of working in partnership with the Private Sector and international agencies to deliver projects.
He was keen to highlight successful projects in Mining and Agriculture that are coming steam shortly, and show the plentiful opportunities that remain in these sectors for international investors with an interest. I was also delighted that President Guebuza has accepted our invitation to speak at the Commonwealth Business Forum to be held in Perth, where he will also chair a roundtable focusing on enhancing partnerships between the mining community in Mozambique and Australia.
Subscribe to:
Posts (Atom)
Posts
