afrol News, 2 June - Leading to the 18th World Economic Forum commencing in Cape Town, South Africa, 4-5 June, world economic leaders say the time is for Africa to become a significant player in the global agenda.

However, as expressed by Stanley Subramoney, Deputy CEO of PricewaterhouseCoopers Southern Africa and Director of the NEPAD Business Foundation, there are still some barriers to Africa's growth and development, citing over-reliance on commodities, ageing or non-existent infrastructure and skills shortage.

The Director of the NEPAD Business Foundation, Stanley Subramoney, says it is imperative for Africa to strategically place its development focus, such as export-orientated investment, especially in non-traditional products, as well as to shift focus to value-added production with vertically integrated operations.

"We also need to enhance the quality of human capital, empower small and micro business and harness the savings of ordinary Africans. The next decade could prove to be an extraordinary period for Africa; a period in which African countries work together to produce an environment capable of supporting wealth creation and social cohesion across the continent," asserts Mr Subramoney, adding "The world is connected as it has never been before, and the power of collaboration is beginning to emerge. Africa's time has come."

He further believes that prospects in Africa remain positive because of high commodity prices and insatiable demand from China and India adding that the risk assessment for the continent has dropped, with rates of return significantly higher than in developed countries.

He said with the increasing Chinese investment in Africa, there is transformation to the continent's political, economic and social landscape, adding it is evident that the impact of the developments envisaged in the economic and trade cooperation zones and the interventions projected within the development corridors could be dramatically enhanced and amplified through greater alignment between China and the NEPAD Business Foundation (NBF).

He said the NBF was aware that China had identified at least five areas across the continent to establish special economic and trade cooperation zones to this effect.

"For example, in 2007 foreign direct investment (FDI) flows into Africa amounted to US$ 9 billion, which far exceeds the investment by the World Bank into Africa. China's long-term strategy for Africa includes offering non-commercial loans in exchange for long-term strategic and economic interests, promises of doubling development assistance by 2009, increasing two-way trade, cancelling debt and training African professionals," he says.

Leading-up to the Forum, several dimensional approaches have been employed to position fruitful debates amongst the leaders, such as the 2008 economic risk report on Africa, which features the latest insights into trends, potential consequences and mitigation relevant to four key risks facing Africa: food and freshwater security; geopolitical instability; economic shocks and climate change and the environment; and challenges to Africa's development.

More than 800 participants from 50 countries are expected to participate in the 18th World Economic Forum on Africa in Cape Town. Under the theme Capitalizing on Opportunity, the meeting will address the challenges that Africa must address if it is to be seen as a reliable and competitive partner in the global economy. A globally-attuned agenda that secures Africa's place in capitalizing on opportunity will be built around five core pillars: Re-engineering Growth; Unfinished Business; Innovate or Perish; Partnership without Borders; and Licence to Lead. These pillars will reflect on how to capitalize on continued African economic growth at a time of a general global economic downturn.

By staff writer

© afrol News

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