ICC and Africa news

United, business can speed African development
By Maria Livanos Cattaui and James Onobiono

Paris, April 1999 - Optimism is becoming ever more evident in reports about African economic prospects, a welcome departure from the more traditional fare of conflict, corruption and mismanagement.

African companies, as well as those that trade and invest in the continent, have a key role to play in turning these hopeful forecasts into reality and nurturing improvements already achieved. At the same time, African countries face a formidable task in turning around negative perceptions. The crucial importance of ending the wars that rage in parts of the continent cannot be emphasized enough.

A better future for Africa’s 750 million people will require enlightened leadership over many years. Everything w ill depend on strengthening democratic institutions, the rule of law and on economic and social reforms capable of releasing the energies and enterprise of the private sector.

Countries seeking investment as the path to economic progress must offer a hospitable business climate in a world economy in which capital, production and information are highly mobile, in which investors live by diversification and identifying untapped markets.

One of the many ways business can contribute is by making sure that governments are aware of the elements required for a regime that encourages foreign investment. Therein lies the key to lifting African countries out of the trap of poverty and equipping them to compete on world markets.

Companies understand these requirements because they have first-hand experience. To convey them effectively, they and their representative bodies need to be united. Chambers of commerce and sectoral associations must sink their national and local rivalries and join forces across the entire African continent. In isolation, they cannot be effective in promoting economic and social development and the interests of the private sector as a whole.

As the leaders of the International Chamber of Commerce, the world business organization, and the African Business Roundtable, the leading Africa-wide body representing the private sector, we are convinced that associations like ours have a vital part to play in African development. Our two organizations can act as a rallying point throughout Africa in formulating coherent and consistent policies to promote business and hence increase prosperity and reduce poverty and deprivation.

Together, the private sector representative bodies can exert constructive political pressure in favour of sound economic policies, introduce the benefits of business self-regulation, and uphold high professional and ethical standards. We can open up fruitful business ties with external partners, whether in neighbouring countries or further afield.

A new dynamism is taking hold in many parts of Africa. For business, as well as for African governments and regional organizations, the challenge will be to sustain and even increase the momentum. Our two organizations can mobilize our respective memberships so that African business presents a united front to governments on such policy issues as international trade and investment, infrastructure development, competition, intellectual property protection, electronic commerce and financial market regulation.

The African Business Roundtable has earned for itself privileged access to national governments throughout Africa and is well placed to convey international and African business concerns to them. ICC is the recognized spokesperson of world business with the United Nations, the World Trade Organization and other key intergovernmental bodies and is thus able to project African business views on the international stage. The two organizations complement each other.

ICC and the African Business Roundtable are committed to raising awareness in the business community worldwide of economic development potential in Africa. They look forward to cooperating closely in this common endeavour with all African private sector organizations that are prepared to take up this challenge.

Maria Livanos Cattaui is Secretary General of the International Chambe r of Commerce
James Onobiono is President of the African Business Roundtable.

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