Foreign Direct Investment is viewed as a major stimulus to economic growth in Africa because of its perceived ability to deal with major obstacles such as shortages of financial resources, technology, and skills. This has made it the center of attention for policy makers in Africa.

The Economic Report on Africa by the United Nations Economic Commission for Africa advocates that FDI is the key to solving Africa’s economic problems. Bodies such as the IMF and the World Bank have suggested that attracting large inflows of FDI would result in economic development. Sub–Saharan African governments including Zambia are very eager to attract this FDI.

Until recently nobody has taken the time to interview  the largest pool of Investors-Coprprate USA. Below is an extract  from the survey done by Baird’s CMC in partnership with the U.S. Chamber of Commerce. The survey reveals why corporate USA continues to take their money elsewhere rather than Africa, despite the loud drums African policy makers continue to beat about how Africa is ready for FDI.

Extracts

A survey of attitudes toward corporate investment in Africa among leading U.S. corporations was conducted with information gathered between January and November 2008 in a series of closed door interviews with senior officers of 30 American Fortune 100 corporations by senior associates of Baird’s CMC.

Below is a summary of the findings:

FACTS

Africa is the world’s second largest and second most populous continent after Asia, covering 20% of the world’s total land area, and home to 14% of the world’s human population, yet Africa remains the world’s poorest and most underdeveloped continent

Africa has not received its “fair share” of global Foreign Direct Investment (FDI) flows.Since the early 1980s, Foreign Direct Investment (FDI) flows to Africa has been averaging only 2.2% of the global total, while Asia received no less than 17.3% of the total.

Overall, the business case for investing in Africa is less compelling than for its competitors To make itself more attractive for US investment, Africa should:

– Invest in education , health and infrastructure
– Ensure the rule of law and a business-friendly climate for all investing companies
– Show it is serious about attracting foreign investment
– Market itself as aggressively as other regions of the world
– Demonstrate opportunity cost of not investing

USA Inc. is more interested in Africa than before, because the African market appears increasingly attractive, but Africa has tough competition and high hurdles for US investment. Education is at the top of the US corporate wish list for Africa; “educate your people so that we can employ them”

The African countries that hold most interest are South Africa and some countries in the North, like Egypt; there are also some pockets of interest in West Africa, most notably Ghana, Nigeria and to some extent Angola; while some in the South (Botswana and Mozambique) and East (Uganda and Kenya), are also being watched

WHY HAS AFRICA NOT ATTRACTED MORE INTEREST FROM THE U.S BUSINESS COMMUNITY?

Rule of law:The rule of law does not prevail to the degree required to make Africa an attractive investment destination. This applies to corporate, societal, and criminal law

Attraction: While the enormous natural resources are an attraction, Africa does not offer a sufficiently large middle class of consumers or show consistent economic growth that could promise a future market. Most African countries are small and have poor markets, and there are barriers to regional markets such as taxes and the freedom of movement of people and goods

Risks versus rewards :Given the currently perceived risks in Africa, the rewards have to be very high to make it worthwhile to invest. Presently, U.S. corporations say that there are very few visible promises of future returns high enough to justify significant interest in investing

Supportive business framework Transportation and communications infrastructure, trained or trainable human resources, and equitable trade and employment practices are insufficient to support corporate investment

A welcoming environment African countries are not doing a sufficient job of providing education and health services to the potential workforce, which makes the potential hire-able local insufficient to support investment.

U.S. Business Wish List

INSIDER’S VIEW

“Educate your people so that we can employ them.”

To attract FDI, corporate America asks African nations to do several things:

Invest in the health and education of the African people to create a large pool of skilled and productive human resources.

INSIDER’S VIEW

“There need to be investments in education and health so that there’s a growing layer of the population that eventually can afford to buy our products.”

* Invest in and maintain infrastructure — transportation, communications, electricity, and security — so that there will be a reliable society in which to operate.

INSIDER’S VIEW

“Are there investments in infrastructure — roads and hospitals and electricity grids and telecommunication grids?”

* Build a functioning legal system to ensure the rule of law, transparency, and fair play.

INSIDER’S VIEW

“Create environments in which you feel reasonably confident that your intellectual property rights and other legal protections are in place to be able to do business without being blindsided.”

* Create a positive climate for foreign investments by reducing bureaucratic processes, eliminating corruption, and reforming tax systems, irrespective of country of origin.

INSIDER’S VIEW

“Executives need to feel confident that the government is going to honor contracts and not change the rules of the game when we need to proceed with any kind of business transaction.”

* Ensure stable political environments — that may or may not be based on western democratic principles — that work toward the common good of all stakeholders in society

The Full Report can be downloaded the website http://www.usafricainvestment.com/ on this link here

Eastern province Minister Isaac Banda has warned parents against marrying off their children under the age of eighteen .

Mr Banda who is also MP for Lumezi constituency said this at Katube Basic School in Lundazi during a developmental meeting that it was disheartening that parents were allowing their children to get married at a tender age before completion of school.

He said those parents allowing their children to be married at the tender should be punished because it was not allowed for the girl child to be married below the age of eighteen years.

He warned that the country will not move forward until the issue of early marriages was resolved.

He said the Government would like to see more children in the country getting education by 2015 in order to attain Millennium Development Goals(MDGs).

ZANIS

The Church says the family is an important social institution that can meaningfully contribute to both social dialogue and economic growth of any country.

Seventh Day Adventist (SDA) District Pastor Neeve Chooma, said marriage is a call to servant hood hence couples should always strive to work towards consolidating their marriages.

Pastor Chooma said this during a special sermon for 36 couples who renewed their marriage vows at the Njanji SDA Church in Lusaka yesterday.

The clergy urged the couples that marriage is an important institution ordained by god therefore they should keep their marriage vows.

Pastor Chooma observed that several problems arise from the premise of unfaithfulness, lack of communication hence the increase in a number of divorces.

And Njanji SDA church Family life director, Elder Peter Mongela commended the church administration for organizing the event as it has inspired several families.

Elder Mongela added that strong and stable families can significantly contribute to a vibrant country capable of overcoming social and economic challenges.

The SDA church organised the event to for 36 couples to renew their marriage vows in strengthening their families.

ZANIS

Luapula Province Permanent Secretary, Jazzman Chikwakwa is disappointed with the rampant mis-use of government time and resources by civil servants in the province.

Mr. Chikwakwa observed that government workers in the province were in a tendency of reporting late for work and knocking off early before the stipulated time contrary to the Terms and Conditions of the Service number 58 (a) and 59 (a) respectively.

He said by reporting late for work and knocking off early before the stipulated time officers were not adhering to the public service code of conduct.

Mr. Chikwakwa said that this tendency by civil servants in the Province has inhibited government’s effective servicing of the public.

This is contained in his memorandum to all heads of government departments which he also copied to Secretary to the cabinet Dr. Joshua Kanganja.

He noted that officers normally left offices without prior permission from their supervisors.

Mr. Chikwakwa has since directed all Heads of Government Departments in the Province to introduce attendance registers for officers at their respective places of work to monitor and curb the misuse of government time.[quote]

He said the officers should be compelled to sign the attendance registers by indicating the time they report for work and when they knock off daily.

Mr. Chikwakwa also directed officers to avoid unnecessary movements during working hours saying this created inefficiency amongst members of staff.

He said that the measure was aimed at controlling the rampant misuse of government time by ensuring that officers concentrated on their line of work of serving the public in the province.

Mr. Chikwakwa warned to take stern action against officers who would not comply with his directive in the Province .

ZANIS

Today’s Scripture

“Beloved, never avenge yourselves, but leave the way open for [God’s] wrath; for it is written, Vengeance is Mine, I will repay (requite), says the Lord”
(Romans 12:19, AMP).

Today’s Word from Joel and Victoria

We all go through situations where we’re not being treated fairly. Maybe somebody is talking behind your back or trying to make you look bad, maybe you were overlooked for a promotion or cheated in a business deal. When we’re being mistreated, the natural thing is to try to defend ourselves and set the record straight. Human nature wants to get even and get revenge. But the scripture says, “Vengeance is Mine… says the Lord.” That means God wants to make your wrongs right. He wants to pay you back for every unfair thing that has happened. He is a God of justice.

Notice what today’s scripture says: you can either avenge yourself or you can let God be your avenger, but you can’t have it both ways. If you take matters into your own hands, then God is going to step back and say, “Go ahead, do it your way. Looks like you don’t need My help.” But on the other hand, if we choose to stay on the high road and say, “No, I’m going to let God be my avenger and trust God to bring justice into my life”, then you are leaving the way open for God to move mightily on your behalf!

A Prayer for Today

Heavenly Father, I humbly come to You asking that You be my vindicator. I choose to release all those who have hurt me and every wrong done to me. Fill me with your peace and love. I trust that You are working on my behalf, and I look for Your goodness in my life. In Jesus’ Name. Amen.

Joel Osteen Ministries

President Rupiah Banda says people who are bent on criticizing most of his government’s developmental programmes, among them the plans to purchase mobile hospitals, might regret in future.

President Banda said people should not criticize well-meaning programmes which government undertakes because they are for the benefit of the Zambian people.

He said in Blantyre yesterday that mobile hospitals might not be appreciated in the urban areas but they would be very useful in rural areas where many people do not have access to medical services.

He warned Zambians against listening to his detractors who were speaking against government’s intention to acquire mobile hospitals at the cost of US$ 53 million from China.

Mr. Banda, who was in Malawi to attend the inauguration of President Bingu wa Mutharika, said it is unfortunate that some people were criticizing government for buying 100 hearses, which he said would be very useful to rural people.

He likened what his government was currently going through, to the experience of Dr. Mutharika and his Democratic Progressive Party (DPP) during his first term of office, when parliament threatened not to approve the budget because they wanted to make it difficult for him to govern the country.

President Banda said some Malawians thought they were making President Mutharika unpopular but he proved them wrong, when he tremendously improved the economy of that country.[quote]

In the just ended elections in Malawi, Dr. Mutharika got a landslide victory, with most Malawians attributing this to his hard work and resolve to improve the welfare of all Malawians.

And President Banda said Zambia would learn a lot of lessons from the just ended presidential and parliamentary elections in Malawi, which saw Dr. Mutharika’s party winning by popular vote through out the country.

The economy of Malawi grew by an average of 7.5 per cent during Dr. Mutharika’s first four years in office and over 9.0 per cent last year.

Mr. Banda hailed the government of Malawi for electing a woman for the position of vice president and many other female candidates as members of parliamentary.

ZANIS

Government says it has approved K7.3 billion for the implementation of various development programmes in Central Province this year.

Vice President George Kunda said this today, when he addressed scores of Serenje residents at Kaunda Square. Mr. Kunda said the money will be used in the construction of schools, health centers,the rehabilitation of roads and many other development programmes.

He said this is in line with government’s commitment enshrined in the Fifth National Development Plan (FNDP)and the Vision 2030.

Mr. Kunda further said Serenje district will this year receive K1.8 billion Constituency Development Fund (CDF). He said the funds released are aimed at enhancing development in all the parts of Serenje district.

Meanwhile, Mr. Kunda has called on farmers in Central Province and Zambia as a whole to embark on crop diversification, with a view of enhancing food security in the nation.

He urged the Zambian farmers to go into crop diversification, which he described as key to helping the country to address the various challenges associated with the global economic downturn.

He said government is working out modalities aimed at reviewing the Fertilizer Support Programme (FSP, in order to make it more effective in responding to the various needs of the peasant farmers in the country.

Mr. Kunda further said, government is putting in place, remedial measures to revive the country’s agricultural sector, by opening up the Nansanga farming block.

Mr. Kunda, who is also Muchinga Member of Parliament, said, government opened up the Nansanga farming block with a view to enhancing food security and boosting the country’ employment creation.

The Vice President further said, government, through the Ministry of Agriculture and Cooperatives, is working on a programme to expedite the construction of dams, roads and the electrification of the Nansanga Farming Block.

Mr. Kunda called on foreign investors to take advantage of the favourable agricultural environment and invest heavily in the sector.

The republican Vice President is in Central Province to inspect progress on development programmes.
ZANIS

THE Lusaka magistrates court says it will pass judgment in the case involving former President Chiluba and two others even without submissions from the former head of State.

Making the ruling yesterday, Ndola High Court Registrar Jones Chinyama, sitting as magistrate, said he will not consider any submissions made after the stipulated time as his orders were that the defence files its submissions by April 24, 2009, while the State is expected to respond by June 22, 2009.

This is in the case in which Chiluba, Access Finance Services executive director Aaron Chungu and Lusaka businessman Faustin Kabwe are charged with theft of public funds amounting to almost $500,000.

Mr Chinyama said he would proceed with judgment set for July 20, 2009, on the assumption that Chiluba decided not to file any written submissions.

“The court will proceed on assumption that A1 (Chiluba) decided not to submit. I can’t extend the date of judgment,” he said.

When the court asked Chiluba why his written submissions had not been filed, he said he was just learning of the development.

The accused persons who appeared for mention are being represented by John Sangwa and Robert Simeza, who were not before court.

In his application, Task Force on Corruption prosecutor Mutembo Nchito submitted that the State has not received submissions in respect of Chiluba and that even the submissions for the other two accused persons were only submitted three weeks after the stipulated date.

Mr Nchito argued when the trio appeared for mention that the State did not know why the defence team was not before court.[quote]

He told the court that it would be difficult for the State to file submissions without taking into account issues raised on Chiluba.

“In the interest of justice, unless the court directs otherwise, it will be difficult for us to file submissions without taking into account issues raised on behalf of A1 (Chiluba),” he said.

Mr Nchito submitted that the State has had problems getting the defence team to observe dates set by the court and that the defence did not inform the prosecution on the delay to file submissions.

And Chiluba’s spokesperson Emmanuel Mwamba said in an interview that the defendants’ lawyers have been instructed to make an urgent application seeking the court’s permission to file out of time.

He said the development was out of an administrative arrangement where Mr Sangwa specifically dealt with Chungu and Kabwe while Mr Simeza dealt with Chiluba.

[Zambia Daily Mail]