'Africa needs to create enabling environment for investments'

In a bid to overcome the problem of growing inequality, Africa needs to create an enabling environment for domestic and foreign investment to realise its potential and ensure inclusive growth.
Panelists at a session on Africa's Next Billion, held here at the 44th World Economic Forum Annual Meeting, said the continent needs to overcome many challenges like the growing inequality that is fuelling instability.
Africa's economic growth may be accelerating, but according to Winnie Byanyima, Executive Director, Oxfam International, the concentration of wealth and power is "excluding and locking out millions of people", driving insecurity and instability.
Julian Roberts, Group Chief Executive, Old Mutual, United Kingdom, told participants: "Africa is on the move and it is moving forward. But we need to ensure we have an enabling platform for business."

Roberts further added that the continent would not succeed unless there is a 'handshake between government and the private sector'.
The panelists further said the intra-African trade could drive economic growth, but it is negligible at present. "I feel ashamed that trade between our countries is only 11 per cent. That is unacceptable," President of Ghana John Dramani Mahama said.

As per the panelists, if the continent's infrastructure bottlenecks are overcome, particularly intra-African transportation routes, such trade could flourish and create prosperity.
"Our target should be 80 per cent intra-Africa trade by 2050," Roberts added.
With the continent's population expected to rise to 2 billion by 2050, the foundation for sustainable and inclusive growth must be laid now, Mahama said.

"Economic and social inclusion is a top priority. We create space for the private sector and its one of government's responsibilities to distribute the fruits of growth," the Ghana President said.
Aliko Dangote, President and Chief Executive Officer, Dangote Group, Nigeria, and a Co-Chair of the Annual Meeting 2104, said that a majority of foreign investors are too cautious in the lead-up to elections.
However, he said, "today there is no government that will be against business, so go ahead and invest."
Meanwhile, according to a separate report titled Scenarios for Mongolia, the landlocked country's future is dependent on successful development of its mineral sector and engagement with neighbours.

Sustained economic growth must be underscored by efforts to diversify the economy and build further trade and investment relationships, the report added.