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COMESA defends growing scramble for Africa’s resources

COMESA defends growing scramble for Africa’s resources
By Chiwoyu Sinyangwe in Sharm El Sheikh, Egypt
Tue 13 Apr. 2010, 03:50 CAT

COMESA secretary general Sindiso Ngwenya has defended the growing scramble for Africa's resources by Asians led by the Chinese and Arabs, claiming the move is a "win win" situation and not a new wave of neocolonialism.

In recent times, and buoyed by the just ended global economic crisis era which dried up liquidity in most Western countries, traditional sources of foreign direct investments for the continent, Africa has seen a growing number of Asian and Arab investors taking up position in key industries and sectors.

Some economic and political commentators contend this move dawns a new era for Africa and Asia's neo-colonialisation of Africa.

But Ngwenya told delegates to the third Common Market for Eastern and Southern Africa (COMESA) investment conference in the Egyptian resort town of Sharm El Sheikh that it was not correct that investors from the Gulf and Asia were only interested in exploiting Africa's natural resources.

"Available evidence, however, contradicts these claims in that whereas it is true that the investors from regions are involved in extractive industries, they are also involved in manufacturing and services sectors," Ngwenya said.

"I am happy that at this conference, we have honourable ministers who will be able to attest that for the first time, their countries are receiving significant investments in infrastructure, manufacturing and services sectors. I am also happy to note that in our midst, we have the Vice-president of the Development Bank of China who will be able to confirm that the partnership is a win-win. This win-win partnership reflects a mutuality of interest."

The COMESA chief stressed that each country acts on the basis of self interest.
"Gone are the days when our countries professed to be non-aligned during the cold war," said Ngwenya. "In the real world, we should accept that every individual or country acts on the basis of self interest. What is important is that there is a balance of self interest between the parties that results in a win-win situation.

Earlier, COMESA council of ministers chairpeson Professor Welshman Ncube said there was need for the regional governments to work towards improving infrastructure to allow for private sector-led growth.

Prof Ncube said investment should target roads, railways, ports, inland terminals, Information Communications Technology, power generation and transmission grids.

"Infrastructure is the backbone of COMESA regional markets," said Prof Ncube who is Zimbabwe trade minister. "Without infrastructure, both physical and the soft, COMESA would be spineless, and hardly a region interconnected, interlinked market in which goods, services and people can move from place to another and communicate.

One of the critical areas for investment is in infrastructure, where it is important to develop adequate regional transport and communications networks together with increased power generation and interconnectivity."

Labels: COMESA, NEOCOLONIALISM, SINDISO NGWENYA

posted by MrK @ 2:57 PM