Opinion: Investing in Africa
By Akie Sony
The past few years have seen a quantum leap in investments in Sub-Saharan Africa, especially from Asian countries. This increase in investments is a result of the right products and services in the region and the right mode of delivery of those products and services, with the financial markets, infrastructure and telecommunications sectors being some of the key drivers of this business growth.
There are plans by the World Bank and its affiliate institutions to accelerate growth of investments in Africa to $900 million by 2009. Banking institutions on the continent have access to a wealth of funds and are aggressively pursuing investment opportunities. The prime sectors of projected growth are financial markets, infrastructure, oil, gas, mining and chemicals. Smaller programs are expected in agribusiness, manufacturing and services, health and education, and information and communications technology. There is a great need for entrepreneurs and professionals of African descent to be part of these endeavors, and NSBE should present the case at every opportunity for African Americans to get involved and not leave the opportunities to the Asians and Europeans alone.
What NSBE can do is coordinate the technical support and professional experience of the U.S. and the skilled labor of African countries, identify viable business and investment opportunities, approach banking institutions and set up businesses that will benefit both continents. NSBE can use its resources and influence in the U.S. to:
§ Develop strategies to partner with U.S.-based organizations to set up affiliates and transfer technology from the U.S. to Africa
§ Set up a sustainable and viable prototype that can win investors' interest
§ Do a case study in:
Power generation, e.g., a coal-fired plant in Enugu State, Nigeria or a solar energy project in the Republic of Niger
Waste management and treatment, e.g., a partnership with an organization and specialist in the U.S. to establish a viable waste treatment business in Abuja or Lagos, Nigeria
Public transportation, e.g., a partnership with a U.S. firm to carry out a study to enhance a Liberian public transportation system
NSBE could be instrumental in: articulating a viable proposal for a sustainable prototype, giving specific and clear explanations on the return on investment; engaging governments and/or financial institutions for funding or investment to implement such a project; and getting corporate organizations in the U.S. interested in viable projects after the prototype has been successfully implemented.
NSBE should focus particularly, but not exclusively, on Sub-Sahara African nations, where policies to support private sector-led growth can be essential in helping these countries escape the vicious cycle of deteriorating economic opportunities. Burkina Faso, Kenya, Liberia, Madagascar, Nigeria, Sierra Leone, Liberia, Ghana, the Democratic Republic of Congo, Zambia, Benin, Mali, Ethiopia, the Central African Republic, Chad, Cameroon and Rwanda are among the countries that can benefit most from a NSBE-led investment initiative.
NSBE member Akie Sony is a projects officer in the Industrial Division of Peugeot Automobile Nigeria Ltd.
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