Zuma urges Africans to do more to attract foreign investors

politically, Africa is witnessing increased “stability, peace and good governance”, enough to lure investors. 
“But despite all the good news, companies have been slow to enter Africa,” President Zuma told local and international investors who attended the conference. “Some executives are still missing the signals”, he said.
“Others question whether Africa’s surge is just the result of one-off lift by the global commodities boom or whether it is really a sustained economic take-off?
“Held in North West Province, the conference was aimed at seeking ways of exploring vast opportunities in Africa.
President Zuma urged Africans to trust the continent first and start spreading a positive message about the potential of the continent.
“We need Africans to stop being pessimistic about their continent, and to be the leading spokespersons and ambassadors.
“If we do not believe what we see and experience, the rise of our beloved motherland, why should the rest of the world?” the president said.
According to the 2010 Mckinsey Global Institute report entitled “Lions on the move: The progress and potential of African economies”, African natural resources account for just about a quarter of GDP growth from 2000 through 2008, while other industries, particularly manufacturing and services, contributed the rest.
At the political level, the African Union (AU) has taken decisions about integration and to promote intra-African trade. Because of costly barriers, intra-African trade is unusually low.
It averages 10 percent, which is less than half the level in other emerging market regions.  
At regional levels, the Tripartite Free Trade area which brings together Common Market for Eastern and Southern Africa (Comesa), the Southern African Development Community (Sadc) and the East African Community (EAC) will create a market of 26 countries, with a population of about 600 million people and a combined GDP of US$1 trillion.
This augurs well for the economic future of these regions. The infrastructure developments that have been undertaken in Africa will eliminate most of the hindrances to growth.
It is widely known that Africa’s inadequate infrastructure is one of the main factors inhibiting trade, integration and economic development.
Creating larger regional markets will increase specialisation and competition and boost manufacturing, President Zuma said.
He said it has been calculated that if the continent continues to narrow its infrastructure gap, economic growth will receive a further large boost — perhaps by as much as 2 percentage points a year.
“In view of this, the AU has set up the Presidential Infrastructure Championship Initiative, a continental committee of eight NEPAD (New Partnership for Africa’s Development) heads of state and government, to champion infrastructure projects at the highest level,” President Zuma told delegates.
Africa is reportedly able to spend about US$72 billion a year on infrastructure, but there remains a US$480 billion shortfall over the next decade to provide for unmet needs, particularly in water, power and transportation. “There is much scope for private participation and investment in this area,” President Zuma said. — Xinhua.