While not recounting all that has happened in the past one year with regards to the Anti-Corruption crusade by the President Yar Adua Administration, do we consider the activities of the Anti-Corruption agencies to be more vibrant, compared to what we witnessed in the last democratic dispensation? Has our image fared better in the international scene with regards to our seriousness in fighting Corruption?
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2 2 n d F e b r u a r y 2 0 0 6
West Africa Investment Forum Sheraton Hotel and Towers, Abuja, Nigeria
20-22 February 2006 Concluding Statement by Mr Pascal Dozie, Chairman Diamond Bank, Business Support Group (BSG) & Board Member, CBC.
I am pleased to make the concluding conference statement on behalf of the conference convenors, the Government of Nigeria, the Nigerian Investment Promotion Agency, the Business Support Group and Commonwealth Business Council.
Our meeting was opened by HE Chief Olesegun Obasanjo, President of the Republic of Nigeria and HE Alhaji Ahmed Tejan Kabbah, President of the Republic of Sierra Leone. We were privileged to be joined by Dr Ibn Chambas, Executive Secretary of ECOWAS, as well as Ministers from seven countries in the region. The Forum theme Trade and Investment - Growth through Global Partnerships was approached in a highly practical way through sectoral discussions on oil and gas, Information and Communication Technology (ICT), ports, shipping, transport, agro-industry and banking and financial services. We discussed key projects in the region - gas pipelines and energy projects, open skies, reforms to port management and the banking sector. I know that a lot of good business has been done this week.
In his opening address, President Obasanjo concentrated on the key issue of trade and market access and urged us, the private sector, to be active, not passive spectators as this is a critical time in the history of our region. Following this clarion call by the President the forum went on to discuss the roles, priorities and constraints of the private sector.
There is recognition by business that governments are making big strides in improving the political and economic stability in the ECOWAS region, and laying the foundations for sound macro-economic, trade and investment policies. There is, however, a need to accelerate economic reform. As peace and good governance are entrenched, business needs to take a lead in helping create a better business environment which is the key to growth and social development.
One of the factors which was emphasised by both government and private sector leaders is the need to integrate reforms in quite practical ways. There is no point in spending millions on a road to improve travel time and safety, if the travel on that new road is delayed by pointless checkpoints.
The private sector needs to develop a strategy on policy reform and its implementation with short, medium and long term goals. The gap between present realities and policy aspirations is a big one. As one Minister said, clearing a container from a regional port can cost more than the entire cost of shipping it from Europe! Again there is the problem of the payment system associated with inter regional trade, as well as the complexities of intra African travel. The impact of these types of problem on competitiveness is catastrophic, and it is up to business to be more active so that government knows what will truly make a difference to doing business.
There was therefore a very positive response to this first West Africa Investment Forum which can help support this process. We look forward to reporting back next year to an even wider constituency. The forthcoming Sierra Leone Investment Forum 27-29 March is an immediate opportunity for us to work together in practical support for building up regional economic ties. I hope that you will attend.
The Forum identified four interrelated areas which governments need to address to accelerate growth and improve overall competitiveness.
Fragmented markets, and the need for faster regional integration and trade reform.
Regulatory reform and improving the investment climate.
Access to Finance for Improving Infrastructure.
Tackling Corruption and Improving Corporate Governance.
Trade Facilitation and Movement of Goods
President Obasanjo noted that globalisation has created new possibilities for regional trade. As noted above the fragmentation of markets within ECOWAS and the slow pace of regional integration was cited repeatedly as a constraint on growth and investment. Small markets, red tape and poor infrastructure make for high costs and uncompetitive products. The removal of cross-border barriers, better policy harmonisation and tariff reductions are urgently needed to help boost investment and lower costs. The meeting welcomed the decision by regional business leaders, with the support of ECOWAS, to establish a West Africa Business Council which could make suggestions to leaders on urgent and short term goals to address these problems. Business has to take a lead to speed up the ECOWAS thrust to improve market access.
Accessing Finance for Infrastructure
Weak infrastructure is now identified as an impediment to achieving the growth required to meet the wider Millennium Development Goals. The proposal introduced by the Nigerian Finance Minister to utilise pension funds in Nigeria and South Africa to create a new lending facility is a good example of the innovation required to address the infrastructure deficit. It is hoped that concessional funds will be forthcoming from the G8 and donors to expand this facility. There is a need to tap into advantages of economies of scale and joint development of regional infrastructure.
Strengthening the Investment Climate
Creating good conditions for doing business is a fundamental goal of ECOWAS, and is an area in which every government has the power and opportunity to effect change. As mentioned above, priority areas are the movement of goods and capital.
Finance is another area singled out. The challenge goes beyond attracting global sources of capital but mobilising domestic capital and addressing illiquid capital markets. In particular, the banks and financial institutions have yet to succeed in providing access to finance for SMEs. The SME sector is the best engine of new jobs and growth. We know that graduating from a micro or informal enterprise to a small company is very difficult. The Forum discussed the need for helping the SME sector through innovative financing, technical assistance and mentorship programmes to address problems of lack of collateral, collection of debt, and adequate planning and skills in SMEs.
Corruption and Good Governance
The push against corruption is gaining speed, and real and effective action is being attempted in many countries. As a part of the Forum, there was a meeting of the Africa-wide initiative, Business Action Against Corruption (BAAC) which was set up alongside the G8 Summit in July 2005. As President Obasanjo said in his opening address, and I quote, "Business Action Against Corruption is innovative because it stresses the importance of African leadership in getting results. It also assists national actors to work together by building new partnerships between government and business to remove the opportunities for corruption. Finally, it is fully committed to improving ethics in business".
As a result of the forum, it is proposed to set up BAAC in Nigeria, and I urge you all to support this important campaign which supports business leadership, capacity development and tackling critical areas of concern such as financial corruption.
The UN Global Compact provides a framework to encourage greater corporate social responsibility. The improvement of corporate governance standards - cleaning up our own act - and ensuring that business is an active and socially responsible citizen is essential if our role as partners in development is to gain public acceptance.
We are pleased that participants at the WAIF also attended the Commonwealth Business Women's Network conference to promote Women's Enterprise for Sustainable Development in Africa. At the inaugural dinner, Ann Pickard, the Regional Executive Vice President of Shell Exploration underlined that the role of women in African economic and political life is changing rapidly, with more women business and political leaders. The CBWN is practical way to support women entrepreneurs, who are the backbone of many economic sectors.
In closing, I should like on your behalf to thank the Secretary of State for Commerce from Cameron for leading a strong delegation to this event, and we look forward to accepting the Government of Cameroon's invitation to attend the Cameroon Investment Forum in Yaoundé 9-11 May 2006.
I would also like to thank all of you for giving your time and ideas to make our deliberations so fruitful. 375 business and government representatives attended the Forum, and we heard presentations from more than 60 senior business and government leaders.
I should like to thank our principal sponsors Shell and MTN, as well as the Cameroon Ministry of Trade, Chevron, Deloitte, Diamond Bank, EcoBank, First Bank Nigeria, Guaranty Trust Bank, PricewaterhouseCoopers, Union Bank, and Virgin Nigeria - for their financial support.
On behalf of the CBC and the Business Support Group, I should like to give our sincere thank to our partners the Nigerian Investment Promotion Agency and the Government of Nigeria for their cooperation.
I wish you a pleasant stay for the remainder of your time in Nigeria and a safe journey home.
