Africa @ the Crossroads: Things are Changing, but Challenges Remain

Africa at the Crossroads  Technology and global political pressure have changed the landscape of African activism and youth-led change are on the rise. Joining Insight to discuss how Africa's youth is changing the continent is former US ambassador to Nigeria, Robin Renee Sanders. She is delivering the keynote address Friday at Sacramento State University's 21st Annual African/African Diaspora Conference: Africa at the Crossroads: Revolution, Democracy, Youth empowerment, Social media and Non-Violence.

click here to listen to NPR interview w/Ambassador Sanders in Sacremento http://archive.org/download/Insight_120426/Insight_120426c.mp3 or

download link

Trade, Gender and Women’s Entrepreneurship

Trade, Gender and Women’s Entrepreneurship – Opening Scene Setting Remarks – Ambassador Robin Renee Sanders, D.Sc. – Moderator AGOA-CSO Panel  as part of the AGOA Ministerial, Washington D.C.,  2:00 – 3:30, June 13, 2012

Welcome to this important panel on Trade, Gender, and Women’s Entrepreneurship

The word itself and the energy associated with the term “entrepreneurship” can be summed, in my view, in a number of ways -- linked to drivers such as innovation, inspiration, and insightfulness (the 3 I’s) in responding to a need in the economic, business or social sectors for either goods and services or to address an element of the global human condition today. There are no better examples of how entrepreneurship can be transformative in one’s life or one’s community than what women in general, and African women in particular are doing across the Continent – especially today as they help enhance trade, push for more entrepreneur- friendly policies, and help advance the economic well-being of their respective nations.

With more than half the world’s population women at 50.9%, translating into 143, 368, 343, and with half of Sub-Saharan Africa’s population of 1 billion also  women, we see more and more women enlivening the entrepreneurship space with the 3 I’s I noted above – innovation, inspiration, and insightfulness – and our 3 panelists today are both illustrative and emblematic of this. Each panelist will have about 5 minutes for their formal remarks, then we will move to an interactive session.

We have with us today (their bio sketches are in your packets):

Ms. Comfort Aku Adjahoe – Owner of Ele Agbe (I actually met her when I was US rep to ECOWAS and have tried her great products) – Ele Agbe is a shea butter company in Ghana. Ms. Au Adjahoe transformed her sea butter shop into a major trading company.

Ms. Nigist Haile – an entrepreneurial activist and Founder and Executive Director of the Center for African Women Economic Empowerment (CAWEE) that helps and provides capacity building for women entrepreneurs.

Ms. Winnie Mandosela-Kamalandu – a senior lecturer in the Department of Economic at the University of Swaziland, and an expert on social-economic issues and international trade.

Enola Mafie – Program Manager on West Africa of Vital Voices Partnership where she provides program and development support for Vital Voices’ economic and SME development in the US and Sub-Saharan Africa.

Other Definitions of Entrepreneurship, which you might find useful:

Entrepreneurship is the act of being an entrepreneur or "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Startup Company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations.^[1]

According to Paul Reynolds, entrepreneurship scholar and creator of the Global Entrepreneurship Monitor, "by the time they reach their retirement years, half of all working men in the United States probably have a period of self-employment of one or more years; one in four may have engaged in self-employment for six or more years. Participating in a new business creation is a common activity among U.S. workers over the course of their careers." ^[2] And in recent years has been documented by scholars such as David Audretsch to be a major driver of economic growth in both the United States and Western Europe. "As well, entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson,1983)." ^[3]  There are a number of other definitions of entrepreneurship which reflect today’s reality. The Kaufmen Foundation notes the phenomenon of entrepreneurship as being efforts to advance education and training efforts, to promote entrepreneurship-friendly policies, [or] to better facilitate the commercialization of new technologies by entrepreneurs and others, which have great promise for improving the economic welfare of our nation[s].

(sources: wikipedi, pulled June 12, 2012; source  Kaufmen Foundation pulled, June 12, 2012)

Nigeria's Agricultural Agenda - Fixing both the Commodity & Financing Value Chains in Agriculture

A FEEEDS Series

As a result of presentations recently on Nigeria's Agricultural Transformation Agenda by senior members of the Nigeria Government, the private sector, and international institutions at both Corporate Council on Africa event and the annual meetings of the U.S. Export-Import Bank, clearly there are two value chain dimensions for Nigeria's agricultural sector:

-- The commodity-structure-productivity and policy framework under the Ministry of Agriculture; and,

-- The need to fix the financing value chain - meaning such things as getting Nigerian Banks to not only lend to farmers, but understand farming needs, especially the small farm holder, and improving the insurance regulatory framework. The country's Central Bank is leading the way on reframing the agricultural finance issues.

These two comprehensive value chains (commodity-productivity development & financing) have a symbiotic relationship - both need to improve in order for the agricultural sector to not only transform, but also to provide the growth potential for the country and for the West Africa Region writ large. Both the Ministry of Agriculture and Nigeria's Central Bank have recognized the pivotal linkage of these two value chain issues, and have put forces together to change the negative paradigms of the last 30 years in the country's agriculture sector. Key efforts include unlocking more than $3 billion in potential financing through several innovative programs such as the Nigerian Incentive-Based Risk Sharing for Agricultural Lending Program (NIRL Program); incentives and initiatives for women farmers; innovative SME development in the agricultural sector, and credit and financing for small farm holders. In addition there is an effort to ensure that there are "agricultural desks" at Nigerian Banks, and that these banks also increase the number of women in senior leadership positions by 40 per cent. The Bank of Industry, an arm of Nigeria's Ministry of Trade, is in partnership with both the Central Bank and the Ministry of Agriculture and pushes for greater support for women farmers, women cooperatives, financing for women, and SME development. The flip side of course is to work with farmers so that they too see agriculture as a business.

International institutions like the International Finance Corporation (IFC) has also stepped up its focus on agriculture as it recently announced an increase of $3.5-4 billion in 2012 for sub-Saharan Africa (up from $2.7 billion in 2011) -- a good portion of this reportedly will be focused on agricultural projects. Infrastructure is the other key area of focus for these funds, along with transportation, food storage, and technology. Banks like Standard Charter is also pioneering with risk insurance for farmers and better credit terms.

This is all good news for Nigeria and for to the other 15 nations in West Africa region. Why? Because if Nigeria can transform its agricultural sector (fixing the commodity-productivity value chain as well as the financing value-chain), this can spur greater sub-regional trade (intra-Africa trade is only about 10 per cent of exports, see www.bit.ly/AFreframe); and, more economic growth for a sub-region with one of the Continent’s and world’s largest and youngest populations. We have all heard the projections that Africa will likely reach the 2 billion person mark at the same time we come close to reaching mid-Century, with one-third of the population reportedly being under the age of 30.

Here is another figure to ponder for West Africa. There are roughly 600 million people living in that sub-region today who are under the age of 30 and about 65 per cent of those work in subsistence agriculture (www.bit.ly/WesYou)). Last reports had Nigeria's youth numbers hovering around 75 million and counting. Thus, there is a demographic importance (the youth bulge) to improving agriculture in addition to the common sense driven needs of: spurring economic growth; improving trade, and increasing GDP. I have written before about Africa's youth needing to become the world's next leading farmers as well as the importance of the region becoming the next global bread basket (www.bit.ly/YouAgric . (FYI: Africa and Latin America are the two areas of the world with the most remaining arable land and water resources). More and more this is being borne out by not only the demographic facts, but certainly the reframing and resurgence in focus by many African government, international institutions, and the African and foreign private sectors on the fundamental importance of fixing agriculture's two value chain issues.

Reframing Africa:2012 & Beyond: Africa's Value-Chain Contributions to the Global Community -The Positives, Challenges & Way Forward

A FEEEDS Series

By

Dr. Robin Renee Sanders,  Founder FEEEDS® Advocacy Initiative @ RMU

California State University-Sacramento – Center for African Peace and Conflict Resolution, April 27, 2012

Good Morning:

It is a pleasure to be invited to California State University-Sacramento as a Visiting Scholar and to participate in this wonderful conference that looks at a variety of issues facing Africa writ large and sub-Saharan Africa in particular.  I am here today in my capacity as the founder of the FEEEDS® Advocacy Initiative at Robert Morris University, and not speaking on behalf of the U.S. Government. What is FEEEDS® you ask? Its an acronym representing the things I have become most passionate about on Africa in this phase of my life such as food security, education, environment-energy, economics, development and the self-help role that is key to all of these things. These are the FEEEDS® pillars.
 

I have been fascinated by the breadth of the issues you are covering at this Africa conference and I wanted to set the stage for you today by talking about some of the issues and things I see that are present-day positives for the region, then look at some …. of the current and long-standing challenges, and then leave you with  a template check list on some possible ways forward for this region that we care so much about and for which we need to create shared values around.

Reframing the Discussion

I have entitled my remarks today “Reframing Africa,” meaning talking about the region differently, and respecting its multifaceted dimensions. I would like to begin with what I think of as Africa’s value-chain contribution to both the Continent and the global community -- using the phrase "value chain" in an atypical manner  -- meaning whatever progress each and every African country makes going forward has a positive ripple affect Continent-wide and for the global community writ large. 

It seems clear to me that for the most part, at least here in the U.S., the frame on Africa is mostly on the negative.  What do I mean by frame?  Taking sociologist Erving Goffman’s (1974) description of frames in The Framing Analysis and others academics such as Jim Kuypers (1997) into account, we are encouraged sometimes by institutions, news organizations and other entities to see a particular issue or country or Continent in a certain way. And, by doing so, we are “induced to filter our perceptions of the world [or parts of the world, in this case Africa] in particular ways, making some aspects of ...reality more noticeable than others” (Kuypers, 1997).

Hence, as a first start, I would argue that for 2012 and beyond let’s reframe the discussion and redirect the lens on Africa so that it is more balanced, and more inclusive of the multi-dimensional framework of the region. This however, does not diminish the challenges that we all know are there.

Africa 2012 Positive Value Chain Contributions:

I know many of you are aware that of the 15 fastest growing economies in the world today, seven of those are in sub-Saharan Africa. Botswana, for example, has maintained a double digit growth rate for the last 10 years; Ghana, will likely be the Continent’s fastest growing economy in 2012 at 8 percent; Mozambique, Nigeria, Rwanda, Angola, and Zambia are others, just to name a few. (The African Post, TAP - http://bit.ly/rB8PWx).

In fact, I have been urging (through my blog) that we re-coin the term BRICS which focuses on the economic prowess and growth rates of Brazil, Russian, India, China and in Africa only South Africa (currently with a projected 3.2% growth rate for 2012 according to World Bank reports) to BRICA in order to be more inclusive of the success and influence of other African nations that are enjoying positive growth rates at 5% or more over the last 3 years. There is a wave of economic growth and development for Africa’s emerging markets at a time of global economic downturn or slow recoveries in Europe, in the U.S. and elsewhere. On top of this, the average 2012 projected collective growth rate for SSAfrica is hovering between 6-7%, with the Financial Times forecasting this to be on order for the region over the next 20 years (http://tinyurl.com/FT-Africa-Rising).

You probably also know that foreign direct investment (FDI) on the Continent at the end of 2011 had risen to over $68 billion with projected FDI estimates for 2015 reaching more than $150 billion  (VP Africa World Bank speech 2/25/11; 2011 US FDI is $48 billion up from $41billion in 2010 ). China (infrastructure) and India (ICT and manufacturing) respectively are leading the way on FDI in the region as well as being the largest trading partners.

Equity and institutional investors are increasingly seeing the region as a haven for investment and a range of new Africa-focused equity funds are cropping up everywhere on business, infrastructure, ICT, agriculture, health or with a Diasporan focus like Homestrings (https://www.homestrings.com).  The importance of the African Diaspora being involved in the Continent’s economic growth cannot be underestimated. Wall Street Journal notes that there are more than 79 investment funds which have been created in recent years exclusively focused on Africa paying 5-6 times earnings after taxes, depreciation, and amortization[with projected 2011 year-end estimates of funds raised at over $8-10 billion (http://1.on.wsj.com/AFequity).

Funds like Helios, Old Mutual Pan Africa, Bob Geldof’s 50 million pound sterling “8 Mile African Fund,” with the UK’s CDC development finance arm (http://bit.ly/GelEquity), Aureos’ Africa Health Fund, and Ghana-based African Agriculture Fund (AAF), which has raised $30 million at the first close of its small and medium enterprises (SME) sub-vehicle. US-based Global Environment Fund (GEF) has raised $160 million for the GEF Africa Sustainable Forestry Fund (GASFF), exceeding its target of $150 million. (http://bit.ly/equitylist). While the U.S. Overseas Private Investment Corporation is involved in some 19 vehicles raising equity and capital in some of the areas noted above (http://1.usa.gov/J5Qcbs). 

What is the other good news?

Ø[Institutions like McKinsey Global Institute noted that the collective GDP of SSAfrica in 2010 was $1.6 trillion (http://tinyurl.com/SSA-GDP), which could rise to $2.6 trillion by 2020 (http://usa.gov/mccgdp);

                   Ø Debt dropped from 82% to 59% of GDP over the last 5 years;

Ø Inflation dropped Continent-wide from 22% to 8%, with many countries holding at low double digits in this difficult global economy;

Ø The region’s growing middle class is approximately 331 million, translating into growing consumers with purchasing power (http://tinyurl.com/FT-Africa-Rising); and the number of households with discretionary income is projected to rise by 50 percent over the next ten years (http://usa.gov/mccgdp);

Ø Forecast for consumer spending power is projected to rise to $1.4 trillion (Sept/Oct 2011 “This is Africa”);

Ø African Diaspora remittances are up over the last 5 years adding to GDP growth, according to informal channels.  Diaspora remittances to Africa reportedly account for 73 per cent of the world-wide total since 2005. (Figures from http://tinyurl.com/Diaspora-Remittances);

Ø On HIV/AIDS – although we still need to maintain both momentum and resources, over the last eight years, anti-retroviral drugs have saved more than 5 million lives in Africa.

Areas of sectoral growth include, but are not limited to key non-oil investment such as agriculture; infrastructure, housing, manufacturing, ICT (SSAfrica has more than 100 million cell phone users, with  Nigeria, South Africa, Kenya, and Ghana topping the list (Africa Post, TAP- http://tinyurl.com/MobileAfrica).

Now to the challenges: 

There are some key challenges that transcend the entire region. Despite the positive news that I outlined above, topping the list of challenges on both the socio-political and development scales are:
Socio-Political:

Ø  Democracy, Governance, Human Rights -- We have seen over the last 18 months more fragile African democracies face pressures from Mali-to-Senegal-to-Democratic Republic Congo-to Malawi, which underscores that the institutionalization of good governance, and respect for democratic constitutions still needs to be stronger. Clear and respected constitutional transitions still are not the order of the day. We saw this in Cote d’Ivoire in 2011 and hiccups this year in Senegal and Malawi. I do not know if some of Sub-Saharan Africa will eventually have its own version of the Arab Spring – maybe not in the same form -- and certainly it should be peaceful, but it will be defined by Africans– as calls for more sustained good governance is demanded, especially through social media as Africa’s young cellphone owners use it as a tool for election monitoring, and economic, and socio-political change. Here I am using the broad sense of governance to include freedom of the press, association and protecting universal human rights, particularly to help empower the Continent’s estimated 500 million women. (NB: Varying exact figures, but sites such as www.bit.ly/AFwomen note that females make up 48-50% of the Continent-wide population).

Ø  Corruption and lack of transparency are next -- Many of the countries that are faring well with their positive macro-economic factoids, still have challenges in these two all-important democracy pillars. On Transparency International’s Corruption Index for 2011 of the 183 countries ranked, only 3 SSAfrica countries (Bostwana, Namibia, and South Africa) where mid-rank between 4.0-6 on TI’s upward 10 point scale of being good on anti-corruption efforts and perceived transparency in the public sector (http://bit/ly/AFcorrup). Transparency in the extractive industries remains one of the biggest issues. According to a April 25, 2012, report by U.S. auditing firm KPMG, bribery, theft and other kinds of fraud cost African governments and companies at least $10.9 billion in 2011 (NB: KPMG said it arrived at the figure after scouring English-language news reports and databases of fraud cases from 2011).

Ø Security – In some countries, security issues from political and resource-related conflict to transnational threats, to famine and drought are on the rise. These provide a fertile home for people with nefarious goals or for illegal goods such as drugs and narcotics. Porous borders and fragile institutions cannot adequately monitor these activities, but stronger regulations, customs and border institutions can help. On peace and conflict, we all must continue to create shared values to reduce tensions and resolve these issues – mutual respect and understand are part of the solution.

On the development end of the challenge scale are: poverty and all its elements such as lack of education and strong health services; tmore focus on youth and women; the need for the right kind of agricultural development (including improved use of water, land, and renewable energy); improvement in infrastructure, access to electricity and transport; and, regional trade

Ø Poverty -- For most Africans the macroeconomic pluses I noted above have not reached the masses as the majority of the Continent continues to live on $1.25 to $2.00 per day. According to the UN, despite sub-Saharan Africa’s economic growth, the increase in per capita has only been from 2.7 in 2011 to 2.8% in 2012. Thus, the Continent is not growing at sufficient levels to make a significant dent in poverty.  The minimum rate needs to be 3% per capita just to inch above the poverty line (http://bloom.bg/AFpoverty). The region’s growing population, high food and energy prices, the need for better access to basic and secondary education and good health services are key. There are reportedly 133 million young people in the region who cannot read. Youth and women are the most affected by poverty indicators, thus on every sector of development youth and women must be at the center.

All of these issues add to the negative indicators and poverty levels. Parts of the Millennium Development Goals (MDGs) for 2015 are to improve the lives of 50 percent of Africans living on $1.25 to $ 2.00 per day down to 29 per cent. With three years to go toward the MDG deadlines, we are not near these goals.

Ø Agriculture and Food Security are next on my list. According to 2011 World Hunger and Poverty Facts, of the 925 million hungry people in the world 239 million of those are in sub-Saharan, 26 per cent of this figure represents children (http://bit.ly/wldhunger). These are staggering numbers only outpaced by the Asia and Pacific region with 578 million people facing daily hunger. All this, despite the world’s ability to produce enough food to feed everyone according to FAO. Although there is a resurgence in the focus on agriculture by many African governments, past neglect in the sector over the last 30 years, by governments and international institutions, has helped lead to the current situation. Therefore the region has to play catch-up at the same time its population is growing at an enormous rate in parallel to rising food and energy prices.

Most of Africa’s poor who struggle with income disparity surely cannot manage these higher food prices. And, it is not just about food availability, but nutritional and adequate food amounts. 

Ø Improvement in rail, infrastructure (particularly electricity), and trade are next on the list. Connecting Africa both infrastructurally and with trade between and among nations are key to further sustainable development. Only about 1 in 4 Africans have access to electricity, intra-African trade is about 10 percent of total exports, and roughly 30% of the region has paved roads or working railways. (http://usa.gov/mccgdp).

Ø Employment and lack of job creation and education are fundamental to forward progress, but the emphasis may not need to be just on traditional jobs or traditional education, but on entrepreneurial opportunities, SME development, vocational training and capacity building programs alongside of traditional education. No donor today, in my view, focuses enough on vocational and entrepreneurial training, SME development or working vigorously enough with the African Diaspora.

This list is by no means exhaustive, but provide some things for you to think about as we all try to work together to address these challenges and create shared values to help move the region forward.

So What is The Way Ahead for 2012 and Beyond? 

I would argue that there are some key areas needing reframing and refocusing to spur along sustained, Africa value-chain contributions . . . for the Continent, and global community:

Ø SMEs -- Once such area is the need for more growth for Africa’s Small and Medium Size Enterprises (SMEs) which can help not only with job creation, and employment but will also help overall economic growth. The value, role and impact of SME development in Africa, particularly for women and youth cannot be underestimated, with figures for African women at more than 50 per cent of the total population and nearly 250 million African youth (ages 15-24) out of a potential population size of 1.9-to-2 billion by 2030 (http://bit.ly/AFyouthpop).

 I have said in the past on “The Africa Post” blog that SMEs have a development enterprise role in Africa that cannot be understated in helping to reframe issues on unemployment and future growth. According to reports there are only 30 million SMEs operating in region and that number needs to be much greater than this to keep pace with population and job and national development needs.

Ø  Agricultural makes both lists -- as a challenge and as a sector for the way ahead.  But the questions on the “way ahead ledger” for this sector are: what kind agriculture, focused on whom, and benefiting who? These questions must be part of reframing the sector. According to a 2010 report of the Global Horticulture Institute the majority of farmers on the Continent are small farm holders which FAO estimates at 36 million  (those with access to 2 hectares or less of land). Leading author D.S.C. Spencer (2002) notes that African small farm holders produce about 90 percent of the Continent’s agricultural output.

     The reason agriculture makes the “way ahead” list is that its potential to employ and create jobs for women and youth is enormous. Protecting small farm holders by using appropriate technology and encouraging them to form cooperatives to produce sufficient yields will be vital. This needs to be coupled with protecting more arable agricultural land from long term foreign leases (which are on the rise) and in some cases have little-to-no benefit to the surrounding communities. Keep in mind that there are only two regions of the world with remaining sufficient arable land and water resources – Africa and Latin America.

Ø The Private Sector -- The role of both the African and foreign private sectors can help with vocational training, capacity building and education as well as in investing more in development. Because in the long term, a developed Africa will help them as well.

Ø Innovative Public-Private Partnerships (PPP’s) – Having donors, the African and foreign private sectors, and the African Diaspora develop new PPP paradigms to spur development will also be important. [A good example of this is the African Diaspora Market Place project, or ADM (www.bit.ly/AFdiaspora). ADM is a new partnership which includes NGOs, a U.S. private sector company and its foundation, and USAID focusing strictly on helping and providing grants to Diasporan SMEs.

Types of PPPs also need to expand to include Public Sector-to-Public Sector -- meaning in-country public sector entities or ministries can cross-fertilize budget resources on synergistic projects.

For example, Housing and Power Ministries could combine parts of their budgets to provide affordable, energy-efficient housing. In this case, the African public sector entities are both donor and stakeholder. And, PPP‘s can include more donor-to-African sub-sovereign entities – meaning donor partnerships that are directed to states/districts/parishes with in a country, or toward municipalities, or community governments with good governance and good local leadership. Keeping in mind those partnerships also can include community in-kind contributions (http://huff.to/rsanders).

Ø Good Governance and leadership – Everyone has a responsibility to ensure that there is an improvement on these two fronts. This includes those living on the Continent wanting peaceful change and those in the international community as regards to who it supports and when. The recent elections in Senegal, in the end, proved that the voice and will of the people prevailed in the end to support their constitution. We saw fairly reasonable elections in a number of countries in 2011, but we need to reach a point where free and fair elections, respect for constitutional transitions are not the exception but the rule. 

Thus, we are in the early years of the 21^st Century. We need to reframe the discussion on Africa to reflect its multidimensional reality, but also create and define shared values on the way forward in 2012 and beyond.  I have provide some food for thought today on how and in what areas we can all work together to ensure that things improve as we reach the mid-way point of the Century while the Continent simultaneously reaches the 2 billion person mark. We all need to recognize that we play an important role in making the region a better place for the generations that follow. Thank You

Six Nigerian Governors Discuss: Business, Investment & Development in Their States

H.E. Rotimi Chibuike Amaechi – Chairman of the Governors’ Forum, Governor of Rivers State
H.E. Ibrahim Shehu Shema – Governor of Katsina State
H.E. Liyel Imoke – Governor of Cross River State
H.E. Gabriel Suswam – Governor of Benue State
H.E. Owelle Rochas Anayo Okorocha – Governor of Imo State
H.E. Ibikunle Amosun – Governor of Ogun State
Ambassador Herman J. Cohen – President of Cohen and Woods International, retired from the U.S. Department of State in 1993
Wale Adeosun – Founder and Chief Investment Officer of Kuramo Capital Management, LLC
Ambassador Robin Renée Sanders – Career Member of the Senior Foreign Service, served in Nigeria beginning in December 2007
Steve McDonald – Program Director for the Africa and Leadership and State Capacity Building Programs of the Wilson Center
Although Nigeria is often thought of in terms of oil production and a legacy of military governance, recent democratic gains combined with anticorruption initiatives and a focus on development which are opening the country to investment in “non-oil” business and development ventures. In keeping with Africare's Policy Series and Constituency's For Africa's Ron H. Brown Series, the Wilson Center's Afrca Program hosted six Nigerian Governors who have been and continue to be instrumental in creating and advocating economic and human development in their respective states. Ambassador Robin Sanders introduced each of the governors and said that she had “had the wonderful opportunity to visit all of their states many times and by far to [her] they are the dynamic, key governors that are doing incredible things in their states.” Ambassador Herman Cohen moderated the first panel discussion and quipped that the occasion was special, “because during my long career in diplomacy … and [having] interacted with many high government officials from the top and all of them were not elected people. They were all people mostly from the military and it is a privilege to be in the presence of people who were elected and are accountable to their constituents.” Each Governor proudly presented the opportunities in their state and encouraged private and public investors to forge lasting partnerships with the Nigerian people in order to ensure a strong, stable, and internationally significant Nigeria.
Panel 1
H.E. Rotimi Chibuike Amaechi
Despite a volatile past, the Nigeria of today is fertile ground for business and investment, and analysis of the current conditions will show not only the need for development within certain sectors, but also the eagerness of the local population to participate in these ventures. Nigeria’s population of 140 to 150 million people is composed of a variety of ethnic and religious groups, which interact freely and harmoniously to make a dynamic and efficient workforce. Though consideration of the needs of the local population is key in business decision-making, other factors must also be weighed including environmental protection and the reality on-the-ground. Oil is doubtless the main Nigerian export, leaving the national economy dependent on its production and distribution. One of the cardinal priorities of the current class of elected officials is to reduce oil dependence and diversify the Nigerian economy by developing the agricultural sector and creating jobs in manufacturing and tourism. This diversification would lead to job security and a more competitive and stable Nigeria, thereby increasing regional and international confidence in the country. Past spats of violence and tumult have shaken investor confidence and left valid questions in the minds of many risk-averse practitioners. But, peace in the delta is beginning to take hold and can be seen through the recent rise in oil production. Each Nigerian state is endowed with different assets that should be carefully considered by potential investors and business partners. Rivers State has a population of five million and is the largest oil and natural gas producer in the country. Governor Amaechi characterized this abundance of natural resources as a blessing and a curse for the state. Oil production in Rivers has stimulated economic growth and employment opportunities for the state, but it has also given rise to environmental degradation and pollution in certain areas. Additionally, there has been a gulf between the wealth generated by this industry and the actual income of the population, which must be resolved. The potential for development within the power and agricultural industries could address this issue and alleviate some of the economic disparities among the local population. Rivers State has made progress in the education and health care sectors, yet there is always room for improvement. A recent partnership with an Indian firm has led to the modernization of the school system, bringing it up to UNICEF standards. Availability of and access to healthcare has also been a priority, and medical tourism is an option under consideration by local officials.
H.E. Ibrahim Shehu Shema
The Governor of Katsina spoke about his state of six million people and described the possibilities that investors could explore within its borders. Katsina State is particularly rich in minerals including precious stones, including diamonds, yet the extraction and refinement industries within the state are underdeveloped. There are also vast opportunities for modernization and expansion within the agricultural sector. Farming is the principal source of livelihood in Katsina, and any advances made would have a direct, positive impact on the local population. Nationally, agriculture is one of the largest contributors to Nigeria’s GDP and, is, therefore, an area that, if properly developed, could provide sustainable and productive occupations for many Nigerians. Compared to other Nigerian states, Katsina lacks abundance in oil reserves, which has led to the diversification of the energy sector and investment in alternative power sources. Currently, a substantial wind power project is being realized to harness energy through more environmentally sound methods. This sector has ample room for growth. In conclusion, Governor Shema emphasized his commitment to providing commercial and industrial incentives to encourage business partnerships in his state. “We have the ambition to ensure that our people are productively employed,” he stated, “and that our resources are well-harnessed for the well-being of all in Nigeria.” “If we harness agricultural resources well, along with oil resources and minerals, I have no doubt that Nigeria’s quest for development by 2020 is achievable,” the Governor asserted.
H.E. Liyel Imoke
Cross River State is one of the most dynamic states of Nigeria and is heralded as one of the “cleanest and greenest” in the country. Moreover, Cross River’s economy is growing faster than the nation’s economy at 6.33% due to its plenitude of minerals and natural resources. It is also host to one of the largest tropical forest in Africa which offers an added level of biodiversity in the natural environment. Cross River State encompasses three different climate zones allowing for a range of agricultural variety that constitutes 42% of the state’s GDP. In addition to the agricultural offerings of the local environment, the prospect for tourism is optimal in the state that boasts of having “Africa’s warmest welcome.” As a result of significant foreign investment, this sector is slowly growing and shows promise for extensive job creation. In conjunction with the drive to boost tourism in the region, Governor Imoke highlighted the need for investment in education and professional training, notably in the service industry. Cross River is home to a sizable skilled and educated (over 1.8 million literate) workforce, and skill-specific training would increase their ability to shift towards a more service-driven economy.
Panel 2
Wale Adeosun, Founder and Chief Investment Officer of Kuramo Capital Management, moderated the second panel of Governors and stated that “as an investor, this event is a testament to what is happening in the country. To invest in the country, the key issue that everybody worries about is political stability and political risk. As you have seen from the [governors]… the political transition in Nigeria is a strong testament to what the future holds for the country.”
H.E. Gabriel Suswam
The crop-rich state of Benue is often called the “breadbasket” of Nigeria. Eighty percent of the 4.7 million people who inhabit the state earn their livelihood from the land, rendering agriculture development the core focus of elected officials within the state. Farming education and training are provided to the local population by the Federal University of Agriculture, Makurdi and the Akperan Orshi College of Agriculture. Also, Benue has a wealth of coal, limestone, and salt deposits, and has a large beach corridor that is virtually undeveloped. Benue State is also extremely culturally vibrant, and in tandem with its picturesque beach properties have led the region’s leaders to prioritize tourism in development planning as an expanding industry that holds promise for the people and economy.
H.E. Owelle Rochas Anayo Okorocha
Imo State shares many of the characteristics of other Nigerian states i.e., agricultural wealth, gas resources, and abundant, inexpensive labor, yet Governor Okorocha took pains to discuss the features that set Imo State apart from the others. First and foremost, education is the key focus of this region, and elected officials consider investments in this sector to be vital. The manpower and framework are already in place, but they lack the financing necessary to build the desired educational system. Within this system, officials hope to establish a network of professional schools and special training programs to equip a new generation of Nigerians with a skill set that can build and sustain competitive, market-oriented industries. To achieve this goal, potential investors will be incentivized by free land, 15-year tax exemptions, and work visas. Moreover, with specialized training and skills, the manufacturing industry in Imo will be able to grow beyond its current state.
H.E. Ibikunle Amosun
The bustling region of Ogun is often referred to as the “gateway state” due to the large, busy highway that adjoins disparate parts of the state. Agriculture, commerce, and industry are the strengths of Ogun, and local products are distributed with ease throughout the country via the transnational highway. Governor Amosun highlighted the particular fertility of the land in Ogun state with proclamation that “everything grows here!” He articulated the integrality of agriculture to the Nigerian economy and spoke of his desire to have a more open trading environment to facilitate the distribution of Nigerian goods. Furthermore, his ambitious goal of five hundred new investors over the next few years was emphasized by promises of land donations, legal permits, and tax incentives. Ogun’s strategic location, infrastructure, and natural resources combined engender a vast economic potential and demonstrate the positive changes that are taking place in Nigeria.
Concluding Comments
The government of Nigeria is making a concerted and deliberate effort to diversify the economy in order to provide Nigerians with legitimate, sustainable career paths. Past media attention has focused on the corruption, violence, and illicit practices of the informal economy that has plagued the country, but the government now hopes that new developments will allow the media to show a new emerging face of Nigeria. By providing Nigerians with education, healthcare, and professional opportunities, the prominence of the shadow economy will shrink dramatically. Further, decisive steps to rid the government of corruption have been taken and, in effect, transformed the public sector into a more transparent, proactive entity, and raised the prevalence of elected officials that are accountable to the people of Nigeria. This is providing a new democratic environment that hopefully fosters solid and fruitful business relations. Although the advent of an entirely stable political and economic environment is far from complete, consequential progress has been made, and a welcoming and advantageous business climate for foreign investors is on the rise.