OPINION: Our leaders have a choice in new scramble for Africa

The historically famous Berlin Conference in 1884 was Africa’s undoing in more ways than one. There was no reasoning or any rationality to divide Africa the way it was done.

German chancellor Otto von Bismark called together the major western powers to cut Africa into pieces and what ultimately resulted was a hodgepodge of geometric boundaries that divided Africa into 50 irregular countries. This new map of the continent was superimposed over 1,000 indigenous cultures and regions of Africa.

To date not a single western power that participated in the Berlin Conference has come forward with an apology.

Today we are witnessing something very similar, just in the recent past Russia called more than 30 African countries to Moscow to discuss investment and explore bilateral trade relationships. There was also talk about provision of aid. Similarly China, India and some other countries have done this and the Scandinavian countries called some 30 or so African countries to meet in Dar with a similar objective.

This is indeed wonderful, we should participate whole heartily because we need their investments for our economic growth, BUT...

We should stand up united and negotiate for only one bottom line; any investment in Africa should first and foremost benefit the population of Africa. This is a scramble for the economic opportunities in Africa, scramble for its natural resources, scramble for business opportunities, scramble for financial institutions etc. It is a scramble but this time round as independent countries we are not voiceless as in 1884. Let me be more analytical on this issue.

It is high time there should be more trade, investments and bilateral relationships between African countries. Priority should be to increase intra-African trade traffic and investments, let Africa help itself and then look for outside investment.

The case of Bagamoyo port development is a good example. We need to develop the port but not at the terms offered by the Chinese investor. We need to protect our interest and negotiate a win-win outcome. Africa should take this example for every foreign investment. We need to fast forward our development but not at the expense of marginalizing our population. Africa has a unique opportunity to spread out its development agenda for the benefit of all.

Africa’s potential as a growth market for business remains both underestimated and misunderstood as does the potential for business to play a transformative role in solving the continent’s biggest challenges.

Africa’s fast-growing population and markets present important opportunities for business in an environment of slowing global growth. At the same time, greater innovation and investment from business is essential to meet Africa’s unfulfilled demand for goods and services, close the gaps in its infrastructure, create jobs, and decrease poverty.

Africa has a population that is fast growing and urbanizing, current population of around 1.2 billion people is projected to reach 1.7 billion by 2030. More than 80 per cent of Africa’s population growth over the next few decades will occur in cities, making it the fastest-urbanizing region in the world. At the same time, incomes are rising across much of the continent, generating new business opportunities in the consumer market.

Africa is industrializing, an African industrial revolution is underway as manufacturers ramp up production of everything from processed food to automobiles. There is also an important opportunity to grow manufacturing exports and make Africa the world’s next great manufacturing center as industries shift away from China to lower-cost regions. The ongoing revolution among industries without smokestacks, such as tourism, agro-industry, and some information and communications technology based services, can serve as a development escalator as these industries share three key characteristics of traditional manufacturing—exportability, higher productivity, and high labor intensity.

Africa is pushing to close its infrastructure gap; poor infrastructure is one of the key impediments to investment and growth in Africa.

For example, nearly 600 million Africans lack access to the electricity grid. That represents a big opportunity for investors and entrepreneurs with the imagination to help solve Africa’s infrastructure challenges.

Innovations to unleash agricultural and resource wealth, Africa has long been known for its resource abundance in both agriculture and mineral resources.

To date, though, Africa has struggled to translate these resources into shared wealth and sustained economic development.

New innovations and investments promise to change that picture and create exciting growth opportunities for business.

The potential of increasing digital and mobile access, Sub-Saharan Africa saw the world’s fastest rate of new broadband connections between 2008 and 2015, and mobile data traffic across Africa is expected to increase sevenfold between 2017 and 2022.

This trend will allow companies to improve productivity, speed up transactions, and access wider markets, and could add $300 billion to the continent’s GDP by 2025.

Scramble for Africa this time round is purely based on its economic potential and African leaders have a choice – to make the continent prosperous or make themselves rich.

Zulfiqarali Premji is a retired MUHAS professor. His career spans over 40 years in academia, research and public health.