India UK Merger and Acquisitions

Between 2000 and 2008 over 1000 Merger and Acquisitions took place between British and Indian Companies, these deals were worth over 75 billion Dollars. The total number of deals is expected to drop in 2009, due to the financial crisis and less easy access to credit, but the value of those that do go through is expected to remain high.

India and the UK's shared heritage make them ideal business partners and in recent years the quantities of money involved have been impressive, but mainly made up by one or two 'headline' multi-million dollar deals a year.

The next step is to promote the greater interaction between small and medium size companies in both India and the UK, as these are by far the largest employers and would have the greatest impact on the general economy.

Presidents Optimistic about African Future

Over the Weekend I was pleased to catch President Obama’s speech to the Ghanaian Parliament. The US President focused on many issues that I and CBC believe are important for the future prosperity of the African Continent.

President Obama spoke of Africa’s future being in African hands, “aid is not an end in itself. The purpose of foreign assistance must be creating the conditions where it is no longer needed”. He went on to talk of a Continent not only rich in natural resources, but also entrepreneurs where “cell phone entrepreneurs to small farmers, have shown the capacity and commitment to create their own opportunities”
This optimistic view of Africa is shared by HE Paul Kagame who I met last week while he was in the UK to speak at our Africa Business Forum. He commented that the only thing holding Africa back now was the lack of a vibrant business-public sector relationship. “We have the people, we have the recourses and we have proven that investing in Africa gives you the highest possible returns available anywhere in the world”.

I believe that Africa is well positioned to emerge from the recession stronger than ever, and am glad to see that there is a general consensus around the world, after all the continent is still displaying growth rates above the global average. There is a new confidence both within and outside the continent in the African future.

Grenada, the financial crisis and tourism

During this time of financial crisis smaller states need to work hard to find new ways of attracting foreign capital. CBC recently hosted a lunch for the PM of Grenada, Hon. Tillman Thomas; I was interested to hear how he plans to tackle this problem in his own county.

With the reduced numbers of people travelling for the traditional holiday, countries that rely on tourism for a large percentage of their income need to broaden there appeal and try to attract different visitors in addition to the traditional holiday maker. The Prime Minister described how his country was diversifying into, Eco Tourism and Health Tourism. He also talked of making the country self sufficient in terms of Agriculture – he wants the majority of what tourists consume to be produced locally, there should much fewer agricultural products imported for tourists.

I was also glad to hear the Prime Minister talk so passionately about a home grown chocolate bar that has now found a market in Europe.

Mr Sanusi appointed Nigerian Central Bank Governor

Last week I was in Nigeria to attend a Business Breakfast organised by Mr Pascal Dozie, one of CBC’s Board members, and was pleased to catch the Senate Confirmation Hearings of Mr Sanusi Lamido Sansui as the Governor of the Nigerian Central Bank on TV.

I was glad to see Mr Sanusi, former CEO of First Bank, a CBC Member, appointed as the Governor of the Nigerian Central Bank though a true governance process; the senate questioned him in detail on topics of great importance to the banking system and the Nigerian Economy as a whole, including Regulation and Recovery. Coincidently, Mr Sanusi is the Second Central Bank Governor of the same name to move from CEO of First Bank to the Governorship.

In General the impression I got from the Business men and women I met in Lagos was extremely upbeat; there are tremendous opportunities for investors in Nigeria, especially within the Infrastructure sectors. Government and Infrastructure Companies are actively and determinedly seeking outside investors to help develop the infrastructure base, in Lagos and other regions.

Indian Elections

I would like to congratulate Manmohan Singh on his election as India’s Prime Minister, the workings of the world’s largest democracy are an impressive sight nearly 1 billion people have chosen their representatives.

This election marks a particular change in India’s politics; the congress party now has a working majority and can no longer be held to ransom by the smaller parties that were previously able to prevent governments from taking action. With the ruling party now longer beholden to minority interest progress can now be made on the Doha round as both the US and UK want and expect, leading to further economic reforms in the labour, legal and financial spheres.

Equally India has a major role to play in the response to the financial crisis; European and especially UK Business are looking to India as partners for ventures there and abroad with a high expectation of success. Finally with India looking to be one of the big winners in the proposed IMF reforms in terms of voting rights, India role in the global economy and the Institutions that govern it can only grow.

Dealing with Cuba the Commonwealth Way

I am extremely pleased to see the approach the new US President has taken towards Cuba during his first 100 days in office. Moves to lift some of the travel and trade restrictions could open a dialogue between the 2 countries that has been closed since President Kennedy isolated the Island in the 60s.

Engaging the countries that were previously given pariah status is a good step forward, talk that leads to understanding is always preferable to conflict. President Obama is using strategies similar to those we use in the Commonwealth in his dealings with Cuba, by lessening the restriction on Cuba a white house press spokesman reported that the president hopes “that creating independence, creating space for the Cuban people to operate freely from the regime is the kind of space they need to start the process toward a more democratic Cuba”

By engaging in direct dialogue change can be encouraged in good governance, human rights and economic development, this is the approach the Commonwealth has taken and now we are a community of 53 democracies.

South Africa's Elections

I would like to congratulate Jacob Zuma on his recent election as South Africa’s President, and wish him luck with all the challenges that await him, both economic and political. However, while South Africa celebrates his election, it is important not to forget the efforts of his predecessor, Thabo Mbeki.

While President Mbeki’s stance on Aids and Zimbabwe may have been regrettable, his impact on the South African economy cannot be overstated. South Africa’s sustained level of economic growth is the success the Mbeki’s presidency should be remembered for.

Consequently, I was delighted to read over the weekend that Trevor Manual, the South African Minister of Finance closely related to the Countries economic success, looks set to play major role in the Zuma Government. This should allay fears that the new government is not focused closely enough on the Economic side of rule.