Indeed "Brand Africa" needs repositioning, to showcase its
champions of successful development and inspire others to realise
their potential.
This issue of Trade Forum showcases
companies like the publicly listed South African company Johnnic
Communications, an African media giant that is a powerful example
of the changing "Brand Africa". The story of a small company like
Muya Ethopia, exporting quality home soft furnishing and led by a
woman entrepreneur, while not listed on any stock exchange, is the
same: strong leadership, contemporary products to match the global
market and commitment to local development. This is the new "can
do" Africa.
African leaders are on the world stage, investing in new
partnerships. In Rwanda, the recent global meeting of women
parliamentarians attracted international leaders and showed how
African women are leading the charge for responsible
governance.
The continent is witnessing the highest growth and investment
levels in a long time. Macroeconomic indicators are quite stable,
reserves are going up and remittances are the highest ever. Africa
is rich in young human resources and entrepreneurial talent. Women
entrepreneurs are becoming recognized as a powerful business
development force, agents of change in their communities and
families.
This is not to underplay the challenges of being home to only
13% of the world's population, but 30% of its poor. AIDS has had
devastating consequences, with the heaviest toll on people of
working age. Low literacy is a continuing challenge. Linked to this
is the high rate of youth unemployment and low productivity.
Market access barriers are the best-known trade constraints.
Some 10 million farmers, the majority of whom are women, are
affected by trade distortions in global markets.
Of the world's poorest 50 countries, 34 are in Africa. Many are
land-locked with poor infrastructure like roads, railways, sea and
airports, all inhibiting their ability to export competitively. The
economies are small, with limited regional cooperation and trade.
This is a real barrier to using trade to reduce poverty.
While business taxes in North Africa and the Middle East are the
lowest in the world, those in sub-Saharan Africa are the highest.
High taxes in the formal sector are one reason why the large
informal sector in Africa is not in the mainstream of trade
development.
Historically tied to the production of commodities sold to the
colonial fathers, there is very limited value addition to both
goods and services to meet international standards or market
requirements. Trade support institutions generally lack the
capacity to help small firms grow and sell across borders.
Today's "Brand Africa" might be better depicted as a mosaic of
contrasts. In that mosaic we find a handful of strong economies,
least developed countries - many of them landlocked, some nations
at war and some post-conflict countries. Each has its own special
circumstances. The strategy to change "Brand Africa" needs to
reflect these different realities.
Work with agents of change
September marks the halfway point to achieve the Millennium
Development Goals' targets of reducing poverty and bringing
prosperity to the African people. Credible partnerships can bring
about lasting change. We must look for change agents to effect the
transformation necessary to sustain strong African business while
ensuring thriving communities and long-term development.
Critical to this change are financial, regional, academic and
research institutions as well as business support institutions and
civil society.
Financial institutions: because the
best business ideas go nowhere without the right financing.
Regional institutions: because we need
critical mass to help business compete.
Academic and research institutions:
because they analyse local development challenges and build up a
base of skilled professionals.
Business support institutions and civil
society: because a strong private sector and civil
society are needed for balanced development.
ITC supports African business
From organic cosmetics made in South Africa's Eastern Cape, to
luxury handbags made by Ethiopian cooperatives, to wooden jewellery
made from sustainable Mozambican forests, ITC is partnering with
Africans to sell quality "Made in Africa" products around the
world.
Our programmes focus on private sector development, regional
integration and poverty alleviation. We've stepped up initiatives
to encourage African businesswomen, bring the voice of business to
trade negotiators, facilitate trade between neighbouring countries,
develop the potential of trade in services and link poor, rural
communities to global markets. In the process, we are reaching out
to new players who influence trade and business development in
civil society.
Finally, it is essential to work with African institutions to
support entrepreneurs. This is part of good governance and of
creating a better business environment. ITC works with a range of
trade support institutions in Africa to identify winning sectors
and improve their services to exporters.
Towards a new "Brand Africa"
If we want to change the future of Africa, it is to homegrown
champions that we must look more often. Business developments by
Africans, for Africans are immensely powerful. They demonstrate
that success is possible and give hope and inspiration to African
entrepreneurs who want to follow in their steps. Equally important,
these images put more of the challenge of development in the hands
of business.
We can be inspired by the business world and put branding front
and centre in our thinking. Focusing on a new "Brand Africa" can
encourage investment, growth and ensure that it is not "business as
usual".
Inspiring are the words of Benjamin Mkapa, former President of
Tanzania… "This is a decisive moment for Africa to commit itself to
a strategy of self-dependent path to reducing poverty by scaling up
our own efforts through maximizing efficient and effective use of
resources. This particularly calls for integrating the African
diaspora into resource mobilization plans and in new links with the
south nations."
Prime Minister Meles Zenawi of Ethiopia was also sounding the
call for self-reliance when he said at the opening of the recent
Economic Commission for Africa summit, "All we need do is believe a
little bit more in our capacity to be the authors of our own fate,
our own destiny and a little bit less in the possibility of
deliverance from outside." We at ITC stand ready to work with
Africa in this exciting process of change.