Bid to curb risk of investing in Africa

Posted On Thursday, 17 May 2001 03:01 Published by eProp Commercial Property News
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Developed countries and multilateral financial institutions may be asked to contribute to the establishment of an insurance scheme to encourage private investments in Africa.

Thabo MbekiBid to curb risk of investing in Africa

DEVELOPED countries and multilateral financial institutions may be asked to contribute to the establishment of an insurance scheme to encourage private investments in Africa.

This is one of several proposals advocated in a document on the Millennium Partnership for the African Recovery Programme, an initiative being driven by President Thabo Mbeki and his Nigerian and Algerian counterparts, Olusegun Obasanjo and Abdelaziz Bouteflika.

With other financial instruments, the insurance mechanism will be aimed at reducing the risk associated with investing in the continent, says the document, which is being discussed around the continent's capitals ahead of the summit of the Organisation for African Unity (OAU) in July.

SA's authorities are known to have investigated the idea of the scheme for some time now.

Apart from accelerating debt relief, enhancing market access for African exports, increasing targeted aid and participating in the insurance scheme, Africa's global partners will also be asked to leverage private sector participation in infrastructure projects through the involvement of international financial bodies.

In addition, developed nations and multilateral bodies will be expected to facilitate the establishment of a global partnership of states and pharmaceutical companies to "urgently secure access to existing drugs for Africans suffering from infectious diseases".

Earlier this year, Mbeki, Obasanjo and Bouteflika decided to accelerate the fight against communicable diseases as well as investment in information and communications technologies in implementing the plan, which is widely known as Map.

United Nations Secretary-General Kofi Annan has proposed a global fund to which the US has already pledged $200m to the fight against AIDS. A suggestion has been made that the first 10bn to be raised at next year's UN development funding conference should be earmarked for the fight against the disease.

A parallel African recovery plan, Omega, driven by Senegalese President Abdoulaye Wade, suggests a mix of measures, including interest rate subsidies by developed countries for loans to Africa and using the developed capital markets to fund the plan. Like Map, Omega seeks to mobilise an international partnership to help Africa catch up with the developed world in the fields of education, infrastructure, agriculture and health.

OAU leaders have ordered the merging of the two plans.

Last modified on Thursday, 17 April 2014 08:59
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