By BISI OLALEYE, just back from SA
Against the backdrop that foreign direct investment (FDI) in top 10 African countries rose from $9 billion in 2000 to more than $88 billion last year, stakeholders in the telecommunications sector have tasked government to show the way in infrastructure planning, rather than leave all to telecommunications companies and investors.
This was the submission at the just-concluded 16th Annual Highway Africa (AHA), and 3rd Global Forum for Media Development (GFMD) world conference, held at the Rhodes University, Grahamstown, South Africa, which was sponsored by the MTN Group. The forum noted that opportunities for innovation and transformation of a continent towards an African knowledge economy abound, once government was able to have infrastructure put in place, and make it easier for existing and new network operators to use them, rather than start digging roads whenever there is need for it.
According to the International Monetary Fund (IMF), the world top 10 fastest growing economies include six African countries, Nigeria, Ethiopia, Angola, Chad, Mozambique and Rwanda. Of the number, Angola has experienced 11.1 per cent growth rate, Nigeria 8.9 per cent, Ethiopia 8.4 per cent, Chad 7.9 per cent, Mozambique 7.9 per cent and Rwanda 7.6 per cent. While Sub-saharan Africa is considered the worlof is 5.8 per cent, the United Nations says foreign Direct investment (FDI) in the region has increased from $9 billion in 2000 to more than $ 88 billion today.
Krishna Chetty, a director in MTN, South Africa, while citing several limitations ranging from difficulty in getting access to build base stations, multiple taxations and unnecessary bureaucracy to right of way confronting telcos in African countries, stated that Africa would have gone to the next level if government had not traded its duty. Executive Group Corporate Affairs Officer, Mr. Rich Mkhondo, also stated at the MTN-sponsored dinner that to accelerate the momentum of growth, African governments should champion the setting up of the scene for private sector participation.
"Such development models must rest on the pillars of political stability, property rights, access to capital and investment in health and education. He said there was a greater need for transparency, accountability and eradication of corruption. Governments need to develop the right policies and incentives for ideas, capital and businesses to circulate and develop.
"This will establish sound, sustainable business institutions, investment, development of infrastructure, build transport links and constructing solid strategies. African governments must continue to support entrepreneurship and small businesses, grow companies that will create a multiplier effect and see Africa rise and rise," he challenged. Mkhondo noted that Africa has now become a final frontier for investors especially Nigeria that produces two million barrels of oil a day and Ghana is also producing oil for the first time
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