Profits, returns on investments in Africa best in the world – AU
The African Union has hailed the continent as a favorable destination for sustainable investments.
According to the Deputy Chairperson of the AU Commission, Erastus Mwencha, investments made in Africa reap profits more than the other continents.
“Africa is a favorable place to invest in because profitability and returns are still the best in the world,” Mwencha said at the official opening of the Grow Africa Forum at the AU Headquarters in Addis Ababa, May 9, 2012.
According to an AU statement, Mr Mwencha said at the forum that Africa had seen an increment in investments because of the change the continent was experiencing as regards, investments, peace and security.
Mr. Mwencha therefore urged investors to delve in responsible investments and with models that would mutually benefit both counties and investors. “We also need dialogue to ensure that we do business in a sustainable manner,” he said.
Also speaking at the function, the Vice Chairperson of the World Economic Forum, Ms. Josette Sheeran, said that the era of handouts in Africa was over.
“Africa is representing its own interests, knowing what it had to offer to the World, including partnerships that benefit its nations,” she said.
Africa has to be in the driver’s seat that is what ‘Grow Africa’ is about, Sheeran added.
The Grow Africa Forum builds upon the Comprehensive African Agriculture Development Programme (CAADP) – Africa’s strategy to boost agricultural productivity. It introduces transformative change in African agriculture based on national agricultural priorities and in support of CAADP.
The forum attracted African Heads of State and Government from Ethiopia, Tanzania, and Rwanda, as well as over 200 high-level leaders of global, regional and national businesses, international organisations, civil society and farmers’ organisations.
By Ekow Quandzie
Investments made in Africa becomes profitable because of the many flaws offered by African governments administrative system. it is a very normal occurence to evade tax in Africa for companies that invest there, and this is largely due to corrupt government officials who accept kick backs from investors. In Tanzania for example there are many companies that do no pay tax at all and some of them avoid tax over decades by changing business names. For a scenario like this investors reap big profits when compared to similar investments made in countries with strict investment regulations.
This is something african leaders should not rejoice about but rather look into ways of making investments more favourable to their poor citizens.