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Welcome
to AFRICABIZ, 
Welcome
to AFRICABIZ HTML Email edition.Previous issue available at this
link
Dear faithful reader,
BEFORE
TRADE COMES PRODUCTION OF GOODS AND SERVICES AT COMPETITIVE
PRICES Click
here for the beginning of this article
Holding
meeting and international conferences to debate about the developing of Africa
is a necessity. The signature of treaties and other assistance agreement provide
legal frameworks for international cooperation between the North and the South.
However, as long as treaties lack supporting financing schemes - to carry out
the entirety of integrated developing schemes in the South - said treaties
would never fulfil the goal for which they have been signed that is bridging the
developing gap in Africa. The setup of projects that help building up wealth in
sub-Saharan African countries (SSA) is the precondition to integrating the South
into the mainstream of the international trading.
Of course, only would
be supported in a global manner strategic developing schemes that have the
inherent capability to trigger the economic take off.
Below listed are
some suggestions about how to structure a global financing support to developing
schemes in African countries:
1-
To set up in each African country National Implementation Business Centers. (NIBS)
2- To establish in each African country Credit and leasing institutions.
3- To set up an International Bank Guarantee Structure for Africa. (IBGA) |
NATIONAL IMPLEMENTATION BUSINESS CENTER FOR EACH AFRICAN COUNTRY
That will be in charge of:
| 1-
The economic and financial appraisal of projects.
2- Structuring
and counceling local and regional investors groups.
3- Convincing
local and regional Banks to take stakes in projects included in Developing Schemes.
4-Scouting
for international partners (Investors, Technical and Marketing).
5-Introducing Bank Guarantee's request to the International Bank Guarantee
for Africa. |
National Implementation Business Centers could be just coordinating offices
that would make good use of the staff of local consulting firms.
One
can read, here and there, that Nepad's
promoters evaluated the financing need for the Project to be about US$ 64 billion.
In our opinion, instead of a direct search for US$ 64 (sixty four)
billions African leaders may get the positive attention of G-7 heads of states
if they lobby for the set up of an International Bank Guarantee For Africa.
(IBGA)
For instance, they may negotiate for one third of US$ 64 billion.
Endowed with a Capital of such magnitude (twenty billions US$) the International
Bank Guarantee for Africa could raise twenty times more that is US$ 400 billion
(during the first two years) on the international financial market; to financing
developing project in SSA countries. That would be more efficient than searching
direct for US$ 64 billion to support Nepad.
The problem nowadays is that
only a maximum of five African countries are creditworthy. The others have problems
raising money on the financial market or even to import goods and pay for services
because their credit rating is bad on the international financial marketplace.
When the International Bank Guarantee for Africa eventually becomes active
and starts financing projects throughout the continent, Africa's credit worthiness
would sharply improve. African countries would then start buying all sorts of
equipment and services. A market of more than US$ 200 to 300 billion a year would
emerge in Africa.
No doubt, the Setup of the International Bank Guarantee
Structure to secure loans to finance developing schemes in African countries would
be a Win-Win Bargain for the North and the South.
With such Capital amount
in the range of US$ 21 billion, the International
Bank Guarantee Structure could easily raise twenty times more
money i.e. US$ 400 billion (during the first two operational years) on the international
financial market; and then support project's implementation in African countries.
That will be more efficient than searching directly for US$ 64 billion to support
Nepad.
MAURITIUS
SHOWS THE WAY
"Over the past twenty years,
our economy has undergone profound structural changes. From a mono-crop sugar
producing country, we have grown into a vibrant economy anchored on four pillar,
namely agriculture, manufacturing, tourism and financial services..."
Declared Mauritius' Prime
Minister, Sir Anerood Jugnauth during his opening speech to the Private
Sector Forum at the second AGOA
meeting on January 13, 2003.
Mauritius'
economic success path is shortly laid down in Sir Anerood Jugnauth' speech. Please
do read it. It is a quick lesson on successful economic development strategy.
Mauritius' rise from underdeveloped countries' circle to the developed
world stage, in 20 years, is the confirmation that the double digit economic growth
rate's case study described here
and resulting GDP here available
are not utopia.
THE SET UP OF THE INTERNATIONAL
BANK GUARANTEE STRUCTURE IS A WIN-WIN BARGAIN FOR THE NORTH AND THE SOUTH
The problem nowadays is that only few African countries and their entrepreneurs
are creditworthy. They have problems raising money on the financial market
or even purchasing goods because their credit rating is a bad one.
When
the International Bank Guarantee Structure eventually becomes active and starts
financing projects throughout the continent, African countries businessmen's credit
worthiness would sharply improve. They will become buyers of all kinds of equipment
and services. A market of more than US$ 200 to 300 billion per year will be
created all over the continent.
So you see, setting up the International
Bank Guarantee Structure will be a Win-Win strategy for the North.
COMPETITIVE
PRODUCTION COST MAKES A WEALTHY TRADER
However,
the manufacturing of high-value-added products would bring prosperity to an African
country only if plantations, industrial plants and services ruled according to
efficient management practices.
Because, for would be international buyers
of agricultural products, commodities or any industrial product, only matter:
1.
The quality of offered product or service.
2. The availability of the
product or service.
3. The selling price and delivery on time according
to Sell-Purchase contract terms. |
Manufacturing
will bring prosperity to a country only if performed with good efficient
management practices to producing value added products. That can be achieved
only if the legal framework established by political authorities is attractive
enough to local and international entrepreneurs / investors.
Because,
for would be international purchasers of agricultural products, commodities or
any industrial product, only matter quality, product availability, delivery on
time at agreed purchasing and competitive prices.
"CONTRIBUTOR'S
GUIDELINES" are
available here. You are invited
to contribute to AFRICABIZ ONLINE MONTHLY ISSUE - with articles related to
"How Africa Could Bridge The Developing Gap".
Many
thanks for subscribing to Africabiz. See you on February 15, 2003.
Dr. B.M. Quenum
Click here to get email address
|
| Business
Opportunities
TROPICAL
FRUIT INDUSTRY AS INCOME BUILDING POWER FOR AN AFRICAN COMMUNITY / PART XI: PRODUCTION
COST OF BROMELAIN / A FOOD ENZYME
Pineapple
cultivated in African countries is exported
as fresh or canned fruit, or locally processed into juice concentrates and syrup
for the local and export market. Pineapple bran, the cake / residue obtained
after extracting the juice, has a high content of vitamin A: it is an excellent
feed for livestock. From the juice citric acid could be extracted, or processed
into alcohol, after fermentation.
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