Aliko Dangote, Chairman and CEO of the Dangote Group of Companies, says he believes massive investments in infrastructure, education, health and agriculture can solve Africa's development issues, but governments need to set appropriate policies.
As an experienced and leading private sector operator in Africa, he said he is a firm believer that Africans have to take the lead in the continent's emergence. "We need the understanding and support of AfDB to move Africa to the next level."
"When Africans show belief, faith and confidence in Africa, foreigners will follow," he said, adding that for Africa to industrialize, it is important that all sources of foreign investments into Africa demonstrate some of the practices and commitments that everyone values.
Dangote was speaking at a panel discussion on 20 February in Tunis, during a two-day retreat of the African Development Bank (AfDB)'s Board of Directors that is focusing on the private sector's role in African economic transformation, particularly to see how the Bank can best provide effective partnership and assistance.
Africa has been making quiet economic and social progress since the mid-1990s, with improvements being driven by growing political stability, better macroeconomic management, sweeping sector reforms, greater transparency and accountability, and increased respect for the rule of law. Investors are also now making long term commitments in countries and sectors they would hitherto not have considered.
The AfDB, Africa's leading development institution, is committed to driving Africa's transformation in part through the private sector. Dangote commended the AfDB for its strong support of this important business segment: "For us, it is a matter of making sure that the practices associated with investments in Africa are in line with ensuring they generate maximum benefits for these countries and their citizens," he said
Success stories abound across the continent and not just from large businesses but also from SMEs, which, according to Dangote, deserve special mention because they provide critical support across the value chain.
"However, African governments need to embrace global business standards," Dangote said. "This includes transparency, stout political will, strong procurement rules and bold leadership by governments - practices that demonstrate a level playing field for all economic actors."
Touching on the constraints to private sector development, he stressed that a foreign investor would require about 54 different visas to travel around Africa and in some instances may get a visa on arrival at a border while an African from the Economic Community of West African States (ECOWAS) region would need visas to visit 38 countries and may be denied one on arrival. In this vein, he commended the recent initiative by Rwanda, Uganda and Kenya to start issuing a joint visa. "The visa issuance process for certain African countries is quite cumbersome, even when the applicant is a fellow African," he said.
