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Bridge Building Role Of CCA Spurs American Business Interests in Africa
By Ajong Mbapndah L
Founded in 1993, the Corporate Council on Africa-CCA deserves great credit for the rapidly growing business ties between the USA and Africa. With a dedication to strengthening the commercial relationship between the USA and Africa, the holding of the fourth US-Africa Infrastructure Conference from April 27-29 in Washington DC, is just one in a series of CCA led initiatives which have resulted in a significant growth of American business interests in Africa. A leading resource for U.S.companies doing business in Africa, the CCA has through its programs and initiatives helped the public to understand the African business climate and identify specific trade and investment opportunities.Ambassador Robert C Perry, Vice President for International Programs says from about 20 to 30 companies at the formation of the CCA, some 170 companies are part of the CCA today .The Companies he said range from extractive activities to health care, finance, technology, engineering, agribusiness and more.
In the face of traditional partners like Europeans, and the rampaging invasion of the Chinese, what does the continent stand to gain from doing business with America? A lot says Ambassador Perry citing the size and diversity of the U S Economy, a good business model, management styles, and training employees for global efficient standards. American businesses Ambassador Perry playing the good sales man, also pointed out make use of local labor instead of bringing in a massive workforce from outside.. Sounding confident, Ambassador Perry believes that American companies bring in a model of management with transparent operations which reward merit. Such openness he enthused yields dividends for the individuals, communities, and companies.
A former Ambassador to the Republic of Central Africa from 1999-2001 where he was instrumental in coordinating US efforts towards the United Nations Peace building efforts, Ambassador Perry does not think that America is making a rather late entry into Africa. Reminding this writer in a recent interview at the Washington DC headquarters of the CCA that companies like Chevron have operated in the continent for decades, Ambassador Perry however admitted that the pace of US business in Africa is picking up and will only continue to grow. Besides the great potentials for investment in sectors like infrastructure, technology, health care, and agribusiness, Ambassador Perry also sees great opportunities coming up in the domain of retail especially with the growing middle class in several African countries.
On relations between the CCA and the American business community with African governments, Ambassador Perry described them as very cordial. The presence of leaders in the continent like Sassou Nguesso of Congo, Attah Mills of Ghana, and Paul Kagame of Rwanda, at the last US-Africa Business Forum in 0ctober 2010 is a sign of how serious the continent takes its growing partnership with the CCA. Do factors like human rights, democracy, good governance etc impact on the choice of business or is it just business as usual irrespective of the prevailing situation? Although companies make their own choice of business destinations, such values play a very important role because there improve the overall business climate Ambassador Perry said.
Amongst the countries with close business ties to the CCA are South Africa, Namibia, Angola, Ghana, Nigeria and Ethiopia. The CCA Ambassador Perry disclosed holds regular meetings with specialized South African and Nigerian Groups on how to increase business investment, seeking areas of common ground and identifying mutually beneficial projects.
Doing business in Africa has a lot of hurdles. The conflicts in the continent may be subsiding and there are more countries making important strides towards working democracies but the overall situation of the business climate still needs a lot of improvement. The difficulties encountered in the continent Ambassador Perry says vary from country to country. These range from understanding laws and regulations, to cultural norms, and administrative bottle necks which not only make it a night mare for foreigners trying to invest but also make it hard for local citizens trying to start a business. In a globalized economy, Ambassador Perry advised that countries will benefit more by making it easier for business to set up shop and creating an investment friendly climate.
Under the theme building dynamic growth in Africa, the CCA will host the fourth US-Africa infrastructure from April 27-29 2010.Focus Ambassador Perry reveals will be on key economic sectors in Africa like information and communication technology, alternative energy, and human security. Climate change in Africa as well as available instruments for project finance will also be on the menu of the conference. A novelty at the conference according to Ambassador Perry will be emphasis on entrepreneur activities, the recognition of some small to medium size corporations making a difference in Africa and a working session on what it takes to do business in Africa. The working session Ambassador Perry quipped will help over come some of the fears and myths with a presentation of actual realities.
Asked if the election of Barack Obama as the first African-American President has had any impact on the CCA or the involvement of American business in Africa, a reflective Ambassador Perry said as an African-American himself, he was proud of the historic milestone. President Obama he said is not only a man of vision but also very articulate in presenting his vision and mobilizing people to achieve goals. As an outsider in the American political elite with no family name or well known ties, the election of President Obama according to Ambassador Perry can be viewed as the triumph of vision, perseverance and intelligence.
African countries Ambassador Perry opined could learn something from this and do more to model societies in a way that people who are intelligent and capable can be of service. Harping on the merits of open systems which hinge on competence and not tribal affinity, as well as transparent governance and economic systems, Ambassador Perry considered this a stimulant for good domestic business and foreign trade .President Obama’s National Export initiative will see more American companies seek opportunities in Africa. Such engagement will certainly lead to mutual benefits between Africa and American companies he went on.
For African governments to make the partnership lasting and sustainable, Ambassador Perry amongst other recommendations encourages transparent conditions for investment with clear cut rules. Leaders he urged should adopt a long term perspective with the understanding that how one company is treated may affect the view or approach of other companies towards Africa. Based on his experience and knowledge of Africa, Ambassador Perry expressed cautious optimism with regards to the future of the continent. Countries more open and democratic have the potential of creating more opportunities for their citizens while attracting foreign investment as well. Business Ambassador Perry concluded is like football, with clear rules, everyone is encouraged to play and do their best and all parties benefit from that.
