Investors beam search lights on NEPAD

 
By Napoleon VIBAN PANA Staff Writer Dakar, Senegal (PANA) - The loud applause drawn by the New Partnership for Africa's Development months after its initiators sold the blueprint to donors and private investors, makes the challenge even more pressing for African governments to keep their part of the deal.

At the just-ended 15-16 April Dakar conference to drum up private sector support, NEPAD Steering Committee chair, Wiseman Nkuhlu spoke of wide endorsement and pledges from the European Union, the World Bank and IMF.

Corroborating that affirmation, World Bank Vice President Calisto Madavo told delegates at the conference the Bank saw in NEPAD a solid framework for poverty reduction, among other concerns of Africa.

He said NEPAD provides Africa with a mechanism that could make a difference after previous failed attempts at defining a common and concerted approach to development.

Madavo said the World Bank was committed to giving the initiative "financial and technical support," adding that it was already in dialogue with the NEPAD Steering Committee.

More words of commendation came from other institutions including the UN Development Agency (UNDP), whose Associate Administrator Zepherin Diabre, highlighted NEPAD's insistence on good governance as crucial to peace and stability.

"I confirm our strong commitment and full readiness to assist you in making NEPAD a fantastic success," Diabre pledged at the Dakar conference.

Similarly, business representatives, particularly from the US, joined the NEPAD bandwagon with Stephen Hayes of the 185-member strong US Corporate Council on Africa affirming that the group was in Dakar "to offer our partnership" to NEPAD.

Even US President George W. Bush sent a goodwill message to the conference re-stating Washington's support and citing the Millennium Challenge Account earmarked within the ambit of Official Development Assistance (ODA).

But the eulogies apart, both donor and private sector representatives cautioned that Africa must deliver on NEPAD's promises of political and economic reforms needed to allay investors' fears.

Speakers took turns to point out that donors and investors alike are seeking assurances that African governments mean business this time round.

"We will watch with great interest how you implement good governance," Bush said in his message, stressing that assistance would be on the basis of unblemished governance and proven commitment to tackling poverty, and investing in health and education.

Even as US Africa Millennium Fund manager Frank Savage admitted that Americans were impressed by the "quantity, quality and variety of investment opportunities in Africa," he warned that investors could take their funds elsewhere unless the continent proved safe for business.

The same concern was raised by Madavo, who argued that if African governments delivered on accountable governance and fine-tuned their economies to the requirements of investors, "the challenge would be on the side of donors and foreign investors."

According to him, the challenge, at least in the short term, is for NEPAD to develop credibility, warning that after the outlines of the development plan, "critics are now looking for action."

With the onus of commitment now on Africans, given that donors and private investors have openly declared their interest, Madavo suggested that NEPAD advocates focus on a few initiatives that could be quickly developed to prove the scheme's credibility.

Judging from the trend of comments at the Dakar conference, the democratisation process in Africa is emerging as key determinant in the attitude of donors and private investors on partnership with NEPAD.

It was little surprise that during the debates, one of the issues repeatedly raised was the controversial March presidential poll in Zimbabwe, with business representatives from the US wondering how NEPAD authors Nigeria (Olusegun Obasanjo) and South Africa (Thabo Mbeki) could have approved what observers widely dismissed as a flawed election process.

Senegalese President Abdoulaye Wade spoke up for his two colleagues, arguing that it would be inappropriate to fault the commitment of African leaders as a bloc on the presumed transgressions of one of them.

He suggested that in gauging commitments to good governance and democratisation, donors and investors should deal with governments on case-by-case basis, adding: "we cannot mobilise and fan across the continent forcing errant regimes to fall in line with NEPAD."

But the fact that the election in Zimbabwe resurfaced at the Dakar conference is a pointer to type of challenges NEPAD is likely to encounter at fighting the stigma of political and economic corruption.
 
Dakar - 16/04/2002
 
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