Africa 2030: Points of viewAlongside the banking industry, there is a need to mobilise thelong-term savings necessary to finance the extended developmentprojects such infrastructure. Again, Africa has a long way to go indeveloping the pension and insurance companies that comprise thelong-term savings sector. With the exception of pension companiesin South Africa and North Africa, African insurance and pensioncompanies are puny and fragile.Outside of a few countries such as South Africa, Kenya and Côted’Ivoire, the agricultural sector, especially for local staples remainslargely dominated by small-scale farmers and the supply chain isunderdeveloped. African countries need to enact land laws thatencourage large-scale commercial farming.Compared to smallholders, large-scale commercial farming hasthe potential to make the required investments in agriculturalinputs necessary to raise productivity in the agricultural sector.The potential for African agriculture to be transformed throughthe implementation of genetically modified crops also needs to beseriously explored.Africa has made great strides in the technology andtelecommunications space, especially in the field of mobiletelecommunications networks, which now reach over 60% ofAfrica’s population. But, more needs to be done to effectivelyleverage and improve technology inclusion by investing inbroadband and mobile access and by reducing technology andtelecommunications costs, which remain relatively high. Ifnecessary, this must be achieved through regulation.In the manufacturing space, much remains to be done. Due todecades of deindustrialisation, African manufacturing capacityremains extremely low. There is a need to consider a programme tochampion African industry by investing in leading African countrieswith the potential to compete on a global scale. We have seensuch companies emerge in sectors such as cement (Dangote) andtelecommunication (MTN). With the right incentives, more Africanchampions can be nurtured in other sectors. Asian and the LatinAmerican countries provide tangible examples.And last, but not least, there is an urgent need to address theinfrastructure deficit particularly in the power and energy sectorsso critical to economic development and growth. Institutions suchas the ADB and the African Union have recognised the need forsignificant investment in infrastructure. They must now lead thiseffort, especially in cross-border infrastructure such as connectingregional power systems, railway networks, air and maritimetransportation.To ensure sustainable development, the objective for Africa goingforward must be to build a bigger, more attractive and moreintegrated African market that is attractive not only to foreigninvestors, but equally so to local businessmen.The regional economic blocs that are emerging are a positivetrend towards regional integration and market enlargement butthese remain “baby” steps. In contrast to the usual Africa-Chinasummit or the Africa EU summit, perhaps it is time for an All-Africasummit, a real summit where the African public and private sectorscan come together and agree concrete steps, leveraging on theirdomestic capabilities and resource, and much more importantly, actto implement the decisions in a timely manner.46
“Building Trust from Scratch” requires dedicated communicationHaruki HayashiHaruki Hayashi is Regional CEO, Europe and Africa, for Mitsubishi Corporation, one of Japan’slargest diversified conglomerates, with over 200 offices and subsidiaries in approximately 90countries worldwide, a network of over 600 group companies, and a multinational workforce of over65,000 people.Africa became a major part of my life when I was made boardmember and subsequently chairman of a resource company inSouth Africa. Engaging with a unique group of multi-nationalshareholders during those six years was a continuous and toughchallenge, but I learnt so much- especially when it came to creating‘trust’ in an African context.In any environment, building trust is the critical start to anyrelationship, but it seemed to me that building sustainable trustbetween black South Africans and other international stakeholderswas more difficult and took longer to achieve than usual.Always respecting the local wisdom, I tried hard to engage withlocal stakeholders on a one-to-one basis, with a view to whereverpossible sharing common views with them between board sessions.Though prior consultation was initially appreciated by individualmembers, their actual responses at the board meetings wereoften opposite to what was expected by me. Some membersmisinterpreted my actions as a “divide and rule” tactic, whilstothers simply said what I was doing was not enough. The usualthree-hour board meeting often transformed into eight-hourmarathon debates, calculated to prevent some board membersfrom walking out without a resolution being reached.Some said my experience at the time in South Africa was unusual,but personally I concluded that it took four years of patience anddemonstrating personal respect to my colleagues that eventuallywon their respect for me. Even now, 20 years after the end ofapartheid and 60 years of independence for many other Africanstates, it is still hard for people to trust each other. I understandthat.To be part of Africa’s growth process, and to become fullyintegrated within the business environment in the Africancontinent, we need to make a concerted effort to understand what“diversity” means within the continent. We must then demonstratedue respect through proactive and long-term personal engagement.Only then, will we contribute to a sustainable and democraticenvironment based on mutual trust that will enable the continentto grow and mature and start paying off its much-needed ‘trustdividend’.The most enduring and important image of Africa in my mind, isthe picture of the smiling faces of schoolchildren seen through thewindows of many school buses across the continent. For me, thesechildren represent the future Africa; it is a future that fills me withenergy and hope.Africa 2030: Realizing the possibilities47