At 16%, Angola achieved the strongest economic growth in Sub-Saharan Africa, states a report by the International Monetary Fund. According to the IMF document which examines the economic outlook for Africa both this year and next, Sub-Saharan Africa will record growth of 4.6% in 2005, coming in below the 2004 figure of 5.3%.

Located at the heart of Sub-Saharan Africa and with a commanding base for regional trade and investment, Uganda, described by Winston Churchill as the ‘Pearl of Africa’, is positioned to become one of the most attractive business locations in eastern and southern Africa.  Political and economic reforms have galvanised the country’s economy in recent years, while extensive privatisation has underscored the private sector as the primary agent in the country’s recovery process.

A key weapon in Uganda’s battle to encourage private investment, both foreign and domestic, is the Uganda Investment Authority.  Set up in 1991, the UIA is the statutory agency responsible for promoting and facilitating investments in Uganda.

Interim Developments spoke to Dr. Maggie Kigozi, Executive Director of the UIA in Kampala, about the challenges and successes of attracting investment into Uganda

ID:  What are the key ways in which the UIA works to fulfil its mission?

MK: Our mission at the UIA is to make a significant and measurable contribution to Uganda’s economic development by stimulating private sector investment, promoting exports, and creating sustainable employment in all regions in Uganda. To fulfil this, five years ago we shifted our focus from general investment services to proactive, targeted promotion and specialized client facilitation and aftercare. This has been possible with the multidisciplinary team of staff that I have.

Our key roles in the development of the private sector are investment promotion, investment facilitation and aftercare, policy advocacy, and information dissemination. We have committed ourselves to the UIA Client Charter, which helps us to promote good practice and accountability to both the potential and existing investor. We have also encouraged the line agencies we work with to facilitate the investor, to draw up ‘Client Charters’ and commit to them. To this end we are developing a ‘Team Uganda’ concept that enables us to have liaison officials in the relevant institutions charged especially with investment related issues.

ID: The Government has stressed its determination to support the development of a thriving private sector. How is UIA supporting the implementation of this policy?

MK: A thriving private sector will achieve Uganda’s economic growth and development plan, to increase value added exports, create employment, bring in capital, and attract technology.

To implement this plan, the UIA has established a public service network of District Investment Promotion Officers to ensure regional balanced growth and proper exploitation of our natural resources spread all over the country, a good number of private sector alliances; for instance Women Entrepreneurs Network, and Uganda Desk which has facilitated a series of business programmes designed to strengthen and support Uganda’s base of domestic investors. UIA, as an organisation between the government and private sector, has promoted private/public sector dialogue. The private sector takes an active role in policymaking on issues that affect the business environment.

Currently, the UIA is Secretariat to the World Bank funded Presidential Investor Round Table (PIRT), an initiative of our President, HE YK Museveni. The initiative is anticipated to enable government to set in place relevant interventions with the guidance of both local and foreign investors.

ID: Industry needs a skilled workforce in order to maximize productivity and create wealth. How is Uganda – and the UIA – responding to the challenge of building capacity and developing appropriate human resources strategies for the country?

MK: For starters, Uganda is implementing the policy of Universal Primary Education in a bid to eradicate illiteracy. Our literacy rate is now 68%. At the national level the education curriculum is constantly undergoing development to come up with one geared towards job creation and not job seeking, which has been the case and the cause of unemployment. The ‘white collar jobs’ are not enough and cannot effectively be used to generate increased production from our resources. In addition to these efforts is the soon coming implementation of a national ICT policy. These strategies should equip Uganda’s human resources with competitive capacity to engage in business nationally, regionally and globally.

At the UIA, we identified, among others, Education and ICT as sectors where Uganda had the comparative advantage within the region to become a hub of excellence. To this end, we have prioritized the promotion of investment opportunities in these sectors to attract investment in order to increase access to capacity building. Under the PIRT, there is a sub committee on Education and ICT that is working out relevant strategies that will further develop Uganda’s workforce. Our ‘Uganda desk’ at the UIA has also been instrumental in initiating various practical and cost effective programmes to support and increase the capabilities of local entrepreneurs in sectors where Ugandans can be competitive.

ID: What are the key sectors leading Uganda’s economic recovery and what are the safeguards for investment from within the country, the Ugandan Diaspora and foreign investors?

MK: The key sectors leading Uganda’s economic recovery are mainly the service sectors like Health, Education, Tourism, Telecommunications, and Finance. The other sectors that have been doing well are Agro processing, specifically coffee, beverages, and tobacco. Mining, ICT and Energy are also among the leading attractive areas for investment.

Uganda’s economic recovery began in the 1990s. These were the fruits of economic reforms like the privatization of state enterprises.  Our privatization policy has seen government pull out of business, leaving the ground fair for private sector players. Nevertheless, currently, government is looking at ways of intervention in selected key sectors to enhance capacity. Access to finance is one of the key challenges of the private sector in Uganda. This is will be solved shortly since our financial services sector is growing.

Uganda’s liberal economic policy also left forex controls to market forces. As for capital, you can bring it in and take it out as you please. Our experience shows that when investors are making money and are assured of protection of their investment, they do not leave – they reinvest their profits to make more.

Testimony to this is the presence and operations of Coca Cola and Stanbic Bank. Also present in Uganda are Shell, Standard Chartered, Nokia, Microsoft, Total, Pepsi, KPMG, Dunavant, Lafarge, and TATA. I might have left out a few.

“Ugandans in the Diaspora in the financial year 2003/04 contributed about five hundred and fifty million US dollars!”

We have continued to improve as an attractive location for investment, also because of a stable political environment, a sound legal and regulatory environment, and the protection of investment. Uganda is signatory to the main international investment related institutions like MIGA and OPIC, among others. Uganda has sound macroeconomic policies that have reduced the inflation rate to single digits for the last nine years. Interest rates have, over the years dropped from 40% to 25%, and are still going down, indicating a continuous improvement in the business environment.

I want investors, whether Ugandan leaving in Uganda or abroad, or  foreign, to know that investment in Uganda is safe and viable. Ugandans in the Diaspora have gained trust in the business environment and in the financial year 2003/04, they contributed about five hundred and fifty million US dollars! We need more investment to take advantage of the new opportunities that have been created by the recent East African trade agreement.

South Africa has taken the lead in tackling negative perceptions about Africa with a strong branding campaign targeted both internally and externally.  The International Marketing Council (IMC) of South Africa has the primary role of encouraging business and investment in South Africa by helping to project a positive and dynamic image of the country and by providing reliable and accurate information about the country and its people, infrastructure, incentives and business environment.

We speak to John Battersby, UK Country Manager of the IMC about their branding campaign for South Africa.

ID:  What are the key challenges you face in respect of the developed world's perception of investing in Africa, in general, and in South Africa, in particular?

JB: The key challenges faced in relation to potential investment in Africa is the phenomenon of Afro-pessimism which is based on stereotypes and pre-conceived notions of Africa as a continent plagued by military coups, ethnic conflict, famine, disease and under-development. The Afro-pessimists can't see beyond the continent's challenges and tend to dismiss the revival structures and efforts as "too little, too late". Potential investors also have genuine fears about infrastructure, capacity, economic transparency and political governance, delivery, reliability, currency and regulatory restrictions on trade and investment.

We also receive enquiries about exchange controls, labour laws, black economic empowerment and how it impacts on investors and whether there are time limits on BEE and limits on the desired percentage of black ownership in empowerment deals.

ID:  Branding Africa positively is a challenge that cuts right across the continent.  What are some of the approaches that you have adopted in the IMC to successfully brand South Africa?

JB:  The IMC took the approach of developing a comprehensive national brand which rolls together all South Africa's unique and leading qualities: the diversity of its people, the dynamic and visceral nature of its cultures, the warmth and generosity of spirit of its peoples, the physical beauty, the nature of the historic compromise to democracy, the ability to negotiate over problems with inclusivity as the guiding principle, the ability to solve problems etc. These qualities are reflected in the IMC's pay-off line: South Africa, Alive with Possibility and in the Tourism Brand: Making the Impossible, Possible, or Trade and Investment South Africa's: Business Unlimited.

The first step in promoting the brand was to get buy-in from SA stakeholders. IMC CEO Yvonne Johnston has personally briefed some 15,000 SA businesses, government and other bodies on the brand.

The IMC has also developed two major video/DVD presentations on the brand and has played a central role in promoting the brand through partnering with like-minded organisations such as "The Good News" books, Proudly South African, Trade and Industry South Africa (Tisa) and SA Tourism. It also plays a pro-active role in promoting positive news about South Africa and the brand by highlighting the achievements in its IMC website and the www.southafrica.info website which is now the major portal into the country and scored more than a million hits for the first time this week.

ID:  Attracting inward investment is one thing, managing investments to provide a return is another.  What are some of the initiatives that are being taken up to ensure that South Africa has the necessary, skills, technology and know-how to really deliver what investors are looking for?
           
JB:  Training and skills are a major pre-occupation of both government and the private sector, which contributes 1% of profits in the form of a special training levy to further training. The Government, through the Department of Labour, has a comprehensive scheme to advance the training of employees. The government's program of broad-based black economic empowerment has also identified training as one of the key criteria for assessing a company's transformation or empowerment scorecard as well as equity, black directors, black managers, procurement policies and employee share participation schemes. The system of sectoral charters - social contracts between government and various sectors of the economy to achieve BEE goals - also place major emphasis on training, skills, technology and know-how. The national and provincial education departments also have a policy of actively promoting science and mathematics as school subjects and government is looking at upgrading science and technology facilities at schools. 

There is still a shortage of skills in the economy and government is looking at various means of speeding up skills training as well as hiring non-resident South Africans and foreigners in areas where training will take some time. Concerns around BEE are addressed by underscoring the message that the country's long-term economic and political stability rely on an equitable distribution of the country's economic wealth and power and ensuring that all South Africans have a stake in the economy, however small. The message is bolstered by buy-in from South African business executives and the knock-on effect this has with potential foreign investors.

ID:  Can you explain some of the key elements of the IMC’s role in branding South Africa?

JB: A key component of that image is South Africa as a leading African nation and one that is actively trying to promote the concept of an African economic, social and political revival through the African Union (AU), the New Partnership for Africa's Development (Nepad) and the AU's African Peer Review Mechanism (APRM).

SA is also promoted as a springboard for trade and investment with Africa. The image is addressed in many different ways including interaction with the media, above and below-the-line marketing campaigns such as the branded taxis and supporting corporate sponsorship of SA-centric events and promoting joint branding events.

We also build South Africa's image by promoting its role as the leading investor in Africa, partnering with SA Tourism to highlight the country's potential as a leading tourist destination for Africa and the world.  We also continually highlight the country's achievements at international sporting and cultural fora such as the Olympics, World Cup soccer etc.

The IMC also has a media nerve centre in Pretoria, known as the Communications Resource Centre, from where it monitors domestic and global media coverage of South Africa and makes appropriate interventions to support the brand. Internationally, SA cities and provinces twin with counterparts abroad as part of a mutual promotion campaign. (e.g. London and Johannesburg)

ID:  How do you at the IMC address the issue of the risks that are commonly associated with dealing with Africa - whether economic, reputational, political, etc.?

JB: The IMC deals with the risks associated with Africa by stressing the great strides that have been made in recent years under Nepad and the AU with respect to conflict resolution, economic transparency, political governance, trade reforms etc. Nepad provides the basis for a development partnership between Africa and the industrialised countries. South African President Thabo Mbeki and his government devote much of their time and resources to conflict resolution and laying the foundation for accelerated development in Africa.

ID: How do you gauge the success of the IMC in its role of bringing positive representation of South Africa both within Africa and externally?

JB: It is not easy to gauge the success of the IMC other than through anecdotal evidence and, ultimately, through increased trade and tourism and, in particular, foreign direct investment. The best evidence that the IMC has made an impact is evident in the increased mood of optimism and pride which has made its presence tangible in the year of the country's 10th anniversary of democracy, its third democratic elections and its triumph in being awarded the 2010 soccer world cup. Feedback from the IMC and www.southafrica.info websites also indicate that the IMC and related bodies involved in promoting the country's image have made great strides both domestically and internationally.

ID:  What are some of the lessons that other African countries can learn from the work and experience of the IMC of South Africa?

JB: Other African countries can learn from the example of the IMC and South Africa because it is not easy to focus on what appears like a luxury - marketing and branding - when you are dealing with the basics of survival, under-development and conflict resolution, as is the lot of many African countries.

Hopefully, the South African example will illustrate the medium and long-term benefits that flow from a comprehensive approach to - and sustained implementation of - a country branding exercise such as the one followed by the IMC. It should also be pointed out that despite South Africa's economic and infrastructural head-start on many African countries; it has a lot to learn from the rest of Africa in relation to values and social issues which have been severely disrupted by the apartheid experience.

Archbishop Desmond Tutu launches UK celebrations for South Africa

On Sunday 25th April, the gilded domes of St Paul’s Cathedral, London, witnessed an unprecedented display of African drumming, singing and ululating as a service of thanksgiving was held to celebrate the 10th anniversary of freedom and democracy in South Africa and to launch a week of festivities.

The Cathedral was packed with a crowd made up of South Africans living in the UK, diplomats, British dignitaries, clergy, representatives of civil society and other friends of South Africa.  As the service commenced, the South African High Commissioner to the UK, H.E. Ms. Lindiwe Mabuza, joined the Dean of St. Paul’s and other leading clergy in a solemn procession down the aisle.

Delivering the sermon was the most Reverend Desmond Tutu, Archbishop Emeritus of Cape Town, who spoke of the contrast between the past South Africa and the present South Africa, ten years after the end of apartheid.  In a sermon that blended the solemnity of the occasion with his unique brand of humour, the Archbishop highlighted the needs of present day South Africa. 

Citing the problems of poverty and unemployment as well as the scourge of HIV and AIDS, he made a powerful plea to those present to continue to support South Africa through its present day challenges.

“The struggle is not over,” he said, “and this period is perhaps the hardest. South Africa needs your support… will you give it?”

The message that South Africa is open for global business was clearly demonstrated by STRATE – South Africa’s authorized Central Securities Depository – during its recent international road show to London and Boston.

A project of the Johannesburg Stock Exchange (JSE) and incorporated in 1998, STRATE was set up to address the deficiencies of the JSE’s paper-based settlement system.

In 2003 STRATE Ltd merged with UNExcor and CD Ltd. The merged entity carries out the clearing, settlement and depository functions of all trades on the JSE and the Bond Exchange in South Africa. The settlement of Money Market instruments is in the process of being implemented.  STRATE provides an efficient settlement system for South Africa’s financial market trading, enabling South Africa to compete effectively with other international markets.  The company is now also a provider of a growing number of products, data and registrar type services to listed companies and has made a determined effort to align its practices to international standards and to bring continuous improvements to its systems.

The establishment of this first class institution has led to a marked increase in market activity in the country.  By reducing settlement and operational risk which has led, in turn, to lower costs and increased efficiency, the company has helped to improve the international perception of the South African market.  Owned by a consortium made up of the Johannesburg Stock Exchange and the four major South African banks, STRATE has taken huge strides forward under the leadership of Chief Executive Officer, Monica Singer.

Monica Singer, CEO, STRATE

Originally from Uruguay and now a South African citizen, Singer has been a qualified Chartered Accountant since 1988 and was previously Director of Accounting at SAICA, the South African Accounting professional body, where she was responsible for research of accounting standards. 

The STRATE road show was an opportunity for Singer, the 2002 finalist in the South African Business Woman of the Year Award, to demonstrate the recent advances that have been taking place in South Africa and to share the good news about continued growth within its economy.

STRATE London Road Show

The first of the road shows took place in London and featured a presentation from Paris-based Victor Lopes of Societe General, one of the STRATE Central Securities Depository Participants.  Lopes, the Bank’s Emerging Countries Economist, delivered a comprehensive overview of South Africa’s successful transition from apartheid to democracy, culminating in 2005 when South Africa saw a growth rate of 4.9%, its highest growth rate since 1984.   Growth in the country has been driven largely by consumer demand and consumption and has been further boosted by a rise in real income and house prices.  Lopes acknowledged the high potential for further capital inflows into South Africa, particularly for equity inflows but also for Foreign Direct Investment given the growth prospects in the years to come and the confidence on economic management. Sounding a note of caution, Lopes pointed out that, “Nevertheless, we should keep in mind that the same structural issues of skills shortage, labor market rigidity and HIV/AIDS, that could constrain a higher GDP growth in the medium term, could also potentially affect FDI if they are not addressed.”

Investment was highlighted as a major driver of growth, with a number of major infrastructure projects in the pipeline.  Foreign direct investment in South Africa in 2005 amounted to an impressive $6.8 billion, with a significant proportion coming from Barclays Bank’s acquisition of ABSA Bank.  Lopes stressed that while the South African government has made great progress in stabilising the economy and reducing the country’s vulnerability to external shocks by diversifying, the key risks to the country were largely seen as external rather than domestic.  The broad based Black Economic Empowerment legislation has, in Lopes’s view, enabled the emergence of a Black middle class, an outcome that he described as “a positive step for growth and political stability”

The Largest Economy in Africa

“South Africa has the stability of a developed nation with the opportunity of an emerging market”, was Monica Singer’s unequivocally upbeat assessment of the state of her nation.  In her presentation, the CEO of STRATE rapidly outlined a range of key indicators. 

As the largest economy in Africa, South Africa has the biggest rail service in Africa with a total of 10 major airports which have doubled their traffic in the past decade.  The country produces more than 80,000 graduates each year and has 14 world-class universities.   In the last ten years, over 1,200 clinics have been built and over 500 houses are built every day, while access to clean running water has increased from 59% of the population in 1994 to 92% in 2005. Taxes have been reduced, tariffs lowered, fiscal deficit brought under control, and exchange controls relaxed. The past seven years have seen the Reserve Bank’s net foreign exchange reserves grow by US$40 billion and the debt – to – GDP ratio has decreased from 10% in 1994 to 1% last year.  The South African rand was the world’s strongest performing currency between 2002 and 2004 and, today, business confidence is at a 23 year high.  In her view, the recent award of ‘Best African Country of the Future’ by a pan-African investment magazine demonstrated that this was not simply a partisan view.

“We offer a favourable legal and business environment in South Africa,” Singer said.  “Our banking industry is rated among the top 10 in the world and we have a strong financial market and banking regulated framework.  Our transport system is modern and we have a very sophisticated telecoms facility.”

Of South Africa’s role in the region, Singer highlighted the fact that the country accounts for 42% of Africa’s GDP and has been a key player in the development of Nepad.  Citing the Economist Intelligence Unit’s ranking of the country as highly cost-effective, she underscored the ease of doing business in the country and the appetite for inward investment.

Supporting Investment

The role that STRATE plays in supporting investment is one that Singer takes seriously.  Since the inception of STRATE, there has not been a single failed trade and the South African Stock Exchange is now ranked as the 18th largest stock exchange in the world and, in terms of market capital, is among the top five emerging markets exchanges. 

Her vision for the company is one of commitment to creating value for their shareholders.  “We are committed to be the trusted and preferred centralised provider of products and services”, she stated.  Despite the fact that the company is always looking at innovations and added value products, their core business will always take priority, she added.  “STRATE’s core business is to provide clearing, settlement and depository services for securities, providing stakeholders with end-to-end pragmatic, reliable, innovative solutions that facilitate the management of risk and the realisation of value.”

The second STRATE road show will take place in Boston on 13 June 2006.  (www.strate.co.za)

With a population of approximately 1.2 million, Mauritius ‘the Star and Key of the Indian Ocean’ is a stable African democracy that has successfully achieved a literacy rate of 82.9% among its citizens. 

In this exclusive interview, ReConnect Africa speaks to H.E. Abhimanu Kundasamy, High Commissioner for Mauritius to the United Kingdom, and asks how Mauritius is tackling the challenges of global trade and promoting investment.

RCA: Your Excellency, Mauritius has been able to maintain a stable democracy with regular elections and a positive human rights record. What lessons can your country offer to the rest of Africa?

AK: Indeed democratic principles, respect for human rights, civil liberties, respect for the rule of law, free and fair elections are all well entrenched in our constitution. We not only believe in these sacrosanct values but also respect them both in letter and spirit. On our independence in 1968, inspired by many great statesmen of his time, the first Prime Minister of Mauritius and the father of our nation Sir Seewoosagur Ramgoolam embraced democracy as the way of governance. Let me take you to what Robert Rotberg, President of the World Peace Foundation and Director of the Program on Intrastate Conflict at Harvard University's JFK School of Government had to say about Mauritius and the strategic choices that the father of the nation made at the time of our independence. “When Sir Seewoosagur took the Mauritian prime ministerial reins in 1968 immediately after independence in 1968, he understood that the island’s mélange of colours and peoples…could not long survive in peace if he and others were anything but transparently democratic. He stressed open politics, nurtured social capital, welcomed a free press, and strengthened the rule of law inherited from Britain, and earlier from France”.

In the case of Mauritius, with a vibrant democracy, the respect for human rights and the rule of law, came social and political stability. The latter were the prime factors that contributed to our economic development over all these years. A peaceful, politically stable country is more likely to attract foreign direct investment. Such a country will offer better prospects for economic growth and development. Democratic principles, respect for human rights and the rule of law also bring along the notions of accountability, good governance and sound social policies.  

When it comes to democracy in Africa, I am convinced that, with the exception of a few, most countries have now embraced democratic values compared to what the situation was two decades ago. Today, we have fewer autocratic or kleptocratic regimes operating in Africa and I must say that this augurs very well for the continent.

I must also add that Mauritius was recently elected to the United Nations Human Rights Council with 178 votes and this in itself speaks volume of our visibility, commitment and contribution in advancing the cause of human rights.

RCA: Mauritius has attracted considerable foreign investment and has one of Africa’s highest per capita incomes. What will be the key challenges for the country to keep the economy growing?
 
AK: Today, in this increasingly globalised world where new trade rules are shaping the global economic agenda, it is obvious that for a country like Mauritius there will be some key challenges ahead in order to keep our economy growing.

“Government is committed to make the country as much investor-friendly as possible. There are a host of measures that are in place to encourage foreign investors”.

Presently, Mauritius is facing several adversities and the vulnerability of a small economy like Mauritius is becoming more and more evident at a time when the concept of trade preferences is taking a back seat. Mauritius is facing a drastic cut in sugar prices due to the reform of the EU sugar regime, our textile products are subject to immense competition and the economic problem is further compounded by the high price of petroleum products. Against this backdrop, it is important that we take the right policy decisions in order to build greater economic resilience and sustain economic growth.

Hence, we need to further diversify our economy and stimulate employment creation, facilitate investment, make our products more competitive on the international market, ensure that our sugar industry is more competitive and remains a cost effective supplier to the EU market and also cut down on public expenditure. And this is what precisely the Government of Mauritius is committed to do and is doing.

RCA: In common with the rest of the continent, enterprise development is a key issue for Mauritius. What strategies are being adopted to encourage business development, particularly SME businesses? 

AK: As our Deputy Prime Minister and Minister of Finance Hon R. Sithanen has mentioned, SMEs have a fundamental role in our vision of making Mauritius a dynamic and entrepreneurial economy. What the Government wants is the emergence of an entrepreneurial nation that will fully participate in the mainstream economic activities. Last year Government announced a number of measures to encourage SMEs. These new measures will give SMEs a new impetus. Some of the measures are:

• consultancy services to be provided to SMEs for them to look into the possibility of upgrading and making their products more competitive
• lowering of the cost of finance to micro-enterprises and SMEs
• setting up an Empowerment Fund to support SMEs.  The Fund to be used to advance both debt and equity finance to SMEs on flexible terms, with the added services of mentoring and close follow up of their projects.
• better physical infrastructure for SMEs hence the construction of industrial estates for SMEs.

RCA: Which sectors offer future growth in Mauritius and what procedures are in place to encourage investors into the country?

AK: Government has charted out a road map for strengthening our economic base while exploring new areas of economic activity. We believe that Mauritius has the potential to develop a vibrant seafood industry and already this year, Mauritius hosted an international Seafood Conference which saw the participation of major foreign operators from that sector.

We want our tourism industry to become one of the main engines of economic growth in both the short and medium terms and we are targeting around 1.5 million tourists in the next few years. We are also diversifying the products that the tourism industry can offer. The ICT sector is very promising and already there are measures put in place to make this an important pillar of our economy. Mauritius is also aiming at making the country a major Centre of Excellence.

Government is committed to make the country as investor-friendly as possible. There are a host of measures that are in place to encourage foreign investors. Let me name a few. We are tackling the problem of red tape which chokes investment and frustrates investors. The Prime Minister is personally chairing a Fast Track Committee to coordinate and speed up decisions on major investments.

The Tanzania Trade Centre speaks to ReConnect Africa on investment opportunities through Tourism

Based in the heart of London, the Tanzania Trade Centre plays a strategic role in promoting Tanzania as a tourist and investment destination.  The Centre is the trade gateway to Tanzania, acting as an agency for the Tanzanian government’s efforts to boost inward investment.

Thomas Sembeye, the Centre’s Information and Communications Manager, plays a key role in fulfilling this mission.  Speaking to ReConnect Africa, Sembeye outlined the Centre’s focus.

“If you have ideas for investment in Tanzania, we guide you to the proper channels and help you achieve your targets and goals as early as possible”, he explains.  “We can help you register a business and establish which licences are needed for Tanzania, depending on which sector your want to invest in.  We can also advise on visa and work permit issues.”

Tourism for Investment

The Director of the Trade Centre, Mr. Yusuf Kashangwa, is a passionate proponent of his country. “Tanzania is a great country and it is our job to communicate this,” he says.  “We provide information on how to settle in Tanzania and establish business links with the country.”

Tanzania has the biggest land area among the East African countries with a spectacular landscape of three regions; the Islands and the coastal plains to the east; the inland saucer-shaped plateau; and the highlands. The Great Rift Valley that runs from north east of Africa through central Tanzania is another landmark that adds to the scenic view of the country. The country has the largest concentration of wild animals and is home to world famous National Parks and Game Reserves. It also has sandy beaches and Africa’s highest and snow-capped mountain, Mt. Kilimanjaro.
Tourism is increasingly significant to the Tanzanian economy.  The country is seen as safe and politically stable and has seen an influx of tourists from Europe, the US and Scandinavia. 

“Tourism is our number one foreign exchange earner,” says Kashangwa.  “Tanzania is a huge country.  It is not just Zanzibar and Kilimanjaro - the rest of the country has a lot of attractions.”

The sheer size of the country means that it is able to offer an abundance of natural resources and tourist attractions.  “We have everything in one place”, says Kashangwa.  “800 km of coastline with pristine sands and crystal clear water.  If you are fond of mountains; we have lots.  If you want wildlife, we have millions – Serengeti and three fresh water lakes.  And we have our own tanzanite, a gemstone exclusive to Tanzania.”

As a source of employment and foreign exchange as well as a stepping stone to investment, tourism has become a vital part of Tanzania’s investment strategy.

“One of our key goals is to promote tourism for Tanzania and act as the Tanzanian Tourist Board” says Thomas Sembeye.  “In this capacity, we provide information and brochures on tourism and exhibit in tourism exhibitions.”

“Tourism helps also to highlight investment opportunities and a number of people who visit as tourists then come to us to discuss investing e.g. building hotels, camps and we work with them to help them implement their ideas.”

Tanzanite Account

In common with many African countries, Tanzania has seen its share of skilled professionals leave the country in recent decades.  With particularly significant losses from the health and education sectors, key skills needed for the country’s development have moved to neighbouring countries and further afield, impacting severely on already limited resources in these sectors. 

The Government today is encouraging people to return and to contribute their efforts to developing the country.  By improving the working environment in the public and private sector and increasing salaries across some of the key areas - doctors were recently given a pay rise – the government hopes to attract some of its lost skills back into the country.

Other sectors are adopting new approaches to harnessing the benefits available from migrating Tanzanians.  Three years ago, the Tanzanian CRDB Bank launched a special Tanzanite account for non resident Tanzanians.  The Tanzanite account is a savings account designated for Tanzanians who, while abroad, are able to save a portion of their income to meet local family obligations or for investment purposes.

The account can be opened and operated in the major foreign currencies and earns interest above the standard rate applied to domestic savings accounts.  The Tanzanite account offers a secure way for Tanzanians abroad to save money at home, benefit from increased interest rates and know that their savings are contributing to national development.  Deposits made in hard currency deposits can also be withdrawn in hard currency, eliminating the risk of loss on currency exchange.

Sectors for Investment

The United Republic of Tanzania was formed in 1964 out of the union of two sovereign states, Tanganyika and Zanzibar. The Government of Tanzania is a unitary republic consisting of the Union Government and the Zanzibar Revolutionary Government.  With 34 million people, Tanzania has a diverse culture of more than 120 tribes, each with its own vernacular, but it is a country where people live harmoniously. Swahili is the lingua franca and English is the official business language.

Dar es Salaam, the country’s commercial capital and major sea port for mainland Tanzania also serves the neighbouring land-locked countries of Malawi, Zambia, Burundi, Rwanda, and Uganda, as well as Eastern DRC. Its geographical location gives Dar es Salaam Port the advantage as a gateway into East and Central Africa, making Tanzania as a strategic destination for investors.
Since its independence, Tanzania has successfully held general elections and the current President, Jakaya Mrisho Kikwete took office in 2005. The country has enjoyed political stability and the Tanzanian Government has declared its commitment to sound, consistent and predictable macro-economic policies, promoting good governance and private sector development.

While there are investment opportunities in almost every area, tourism and mining stand out as prime sectors.  Agriculture, a key part of the Tanzanian economy, also offers opportunities for investment.  To support the country’s efforts to promote agricultural private investment based on an improved regulatory and policy environment, the World Bank has recently approved a $90 million agricultural credit facility.  This will also enable farmers to have better access to and use of agricultural knowledge, technologies, marketing systems and infrastructure, all of which contribute to higher productivity, profitability, and farm incomes. 

Tanzania’s tax system is designed to give incentives, such as tax holidays, to new investors coming into the country.  The Trade Centre has managed to bring a significant number of investors into Tanzania since they were set up under the Tanzania High Commission.

“I do encourage people to come and visit us,” says Sembeye.  “However small their enquiry, we can start from somewhere and go anywhere.  Any ideas about investing in Tanzania are welcome.”

For further information about investing in Tanzania, contact the Tanzania Trade Centre, www.tanzatrade.co.uk

Ghana signs up for the Millennium Challenge Account

“We have been given a clean bill of health” said President John Kufuor, addressing a gathering of media and Ghanaian Diaspora in London, following the signing of the Millennium Challenge Compact in Washington.

Welcoming the delegation of Ghanaians to his London office, the newly accredited High Commissioner to the United Kingdom, H.E. Mr. Annan Cato described the meeting called by the President as “an opportunity to give a briefing on the significance of the Millennium Challenge Account (MCA) and what it will mean to our nation.” 

Describing the Millennium Challenge Compact (MCC) as further proof of Ghana’s international recognition, the High Commissioner assured the gathering that “we have every reason to be encouraged and we will welcome whatever assistance you can give to this effort”.

Millennium Challenge Account

In 2002 American President George W. Bush called for what he termed “a new compact for global development, defined by new accountability for both rich and poor nations alike.”  Arguing that “greater contributions from developed nations must be linked to greater responsibility from developing nations”, the American President pledged to lead by example and stated that the USA would increase its core development assistance by 50% over the next three years to result in an annual increase of $5 billion by 2006.  These funds were to be channelled into a new Millennium Challenge Account which would be devoted to “projects in nations that govern justly, invest in their people and encourage economic freedom.”

Outlining the process by which Ghana has received this record sum, the Minister of Information and National Orientation, Hon. Kwamena Bartels, who had accompanied the President to Washington, said, “This new compact is intended to lead to three major results: improvement in institutional infrastructure, in physical infrastructure such as roads and telecommunications and in the living standards of the people.”

Ghana’s application was followed by a due diligence process with a MCA team visiting the country to evaluate the consultative process that had been undertaken as well as the governance of the funds and the planned evaluation and monitoring procedures.  Approval by the US Congress paved the way to the subsequent historic signing of the Compact.  

Ghana Poverty Reduction Strategy

In 2005 President Kufuor launched the Ghana Growth and Poverty Reduction Strategy.  The Strategy identified three priorities areas; human resources development, private sector development and enhanced good governance. 

The funds from the MCC - $547 million - will be disbursed according to criteria that relate to Ghana’s Strategy and which, according to the Government, will give “a rapid and significant return on investment and which are consistent with the Government’s priorities.” The MCC’s investment will build upon and complement the work of other donors

The five-year MCC aims to reduce poverty by raising farmer incomes through private sector-led agribusiness production.  23 regions, mostly in Ghana’s Volta Basin, have been selected.  The majority of the funds, $241 million, will be spent on modernising agriculture, while transportation, rural development, social services and access to market will be allocated a total of $244 million.  The balance of the fund has been allocated to administration and to ensure adequate monitoring and evaluation procedures are implemented.  

Significance and Impact

Agriculture forms the backbone of Ghana’s economy and accounts for around 40% of the country’s GDP.  The sector employs almost 70% of the country’s labour force and produces more than half of the country’s foreign exchange earnings.

The MCC programme will consist of three projects; Agriculture, Transportation and Rural Services.  The Agriculture project will include farmer and enterprise training in commercial agriculture, irrigation development, land tenure facilitation and improvement of credit services for on-farm and value chain investments.  Under this project, approximately 51,000 farm households are expected to receive training in agronomic and business skills.

The Transportation Project will address upgrades to sections of the country’s National Highway and improvements to trunk roads and the Lake Volta ferry services.  The Rural Services project aims to strengthen public sector procurement capacity and provide support for community services and rural financial services.

The impact of the MCA funds will lead to the creation of 700,000 jobs, with an estimated 1.3 million more jobs created indirectly.  According to the President, the improved practices will make savings that will impact positively on the environment. 

“We want to use the fund to diversify agriculture and increase production of crops like pineapples, shea nut, cashews and cereals such as maize,” he said. 

A New Work Ethic

In his address, the President offered an upbeat assessment of Ghana’s economic success story.  The economy has moved in a positive direction with Ghana achieving 5.8% growth in 2005, he said. 

“In 2006 the country is already achieving over 6% growth with analysts predicting 8% growth as a prerequisite for achieving middle income status,” he added.  “The only stumbling block is the current oil crisis and that, we hope, will be overcome.”

The President spoke of his desire to create a new work ethic in Ghana, pointing out that currently the country is suffering from an under-capacity to exploit opportunities such as the African Growth and Opportunity Act (AGOA).  A key requirement for Ghana is the country’s ability to add value to crops produced in the country.  This, according to the President, is an opportunity that will be supported by the MCA funds.

The President emphasised the role of the private sector in Ghana’s ability to achieve its targets for economic success.  “If we are going to move into a modern economy, it is important to rehabilitate the private sector,” he said, adding that “for the first time in Ghana’s history, we created a Ministry for Private Sector Development.”

Management and Accountability of the Challenge Fund

The Government of Ghana has created the Millennium Development Authority (MiDA) to be accountable for the implementation of the projects under the MCC.  MiDA will be governed by a Board of Directors including Government, the private sector and the NGO community. 

During the question and answer session that followed his speech, the President was pressed about how the Government would ensure that the funds would be managed prudently and that these substantial new financial resources would not be committing Ghana to other areas of alliance with the USA.

The President expressed his confidence in the provisions set out for MiDA, describing a management team as one that would be both competent and “would share the vision that enabled us to get this money.”

Ghana has been the recipient of numerous grants and other forms of financial assistance.  When asked why the Millennium Challenge Account is so different, the President was unequivocal in his response.

“The volume of money involved is US$547 million,” he said.  “Since independence, Ghana has never received anything like this.  It is not a loan, it is a grant.  We stated our priorities and said that if the USA wanted to support us, this is what we wanted to do.” 

The Role of the Ghanaian Diaspora

“You have a role to play”, said the President, addressing the group of UK resident Ghanaians.  He spoke of the Ghanaian Diaspora’s “enhanced work ethic” and invited them to offer suggestions and ideas to help the Government in its efforts to be accountable and transparent.  “I would rather we acquire the work ethic and discipline of the West that you are used to.”

President Kufuor spoke of the importance of remittances sent by Ghanaians in the Diaspora to Ghana’s economy.  In 2001 Ghanaians resident outside the country sent back US$400 through the banks, he said.

“In 2005, this had risen to over $4 billion.  In the first quarter of 2006 alone, the figure topped $2 billion and, according to the Central Bank, the indications are that around $8 billion will be remitted by the end of 2006.”

While the bulk of these funds have been targeted at building houses, he urged Ghanaians to “let us use some of the money you bring back to build the economy”.

“Everybody wants to know about us”

Speaking of the MCC, President Kufuor said.  “This has given Ghana a clean bill of health. Now everybody wants to know about us.  The MCA has shown the world that Ghana is a place to come and do business.”

The Millennium Challenge Account will enable Ghana to adopt an integrated and focused programme that targets agriculture and will help to encourage educated young people back to develop the rural areas of the country.

“I believe this should be a turning point for Ghana to transform agriculture,” said the President.  “And, as the most important sector in the country, this will also transform Ghana.”

Photographs:  Peska, London

Industry adds a bloom to the country’s earnings

For Africans in Europe looking for a little bit of home, buying a bunch of roses may bring you closer than you think.

According to the Kenya Flower Council, about one out of every three bunches of cut flowers we buy will have come from Kenya.  By 2004, about 31% of the flowers required in Europe were provided by approximately 50,000 Kenyans directly employed by the industry in diverse areas such as tendering the flower from seed to bloom, trucking, packaging, administration, training and sales, to receptionists, cooks, supervisors and managers. In addition, there are more than a million other people engaged in other auxiliary services through trade, rentals, packaging material, cargo handling, transport, communications, security, banking, private and public regulatory services.  

Kenya’s 2nd Foreign Exchange Earner

The horticulture sector is Kenya’s number two foreign exchange earner after tea, bringing in $400m p.a. A substantial amount of this money is directed to ensuring sustenance of the livelihood of all those who are engaged by the industry in one way or another, while a considerable amount goes into the Government revenue.
       
The industry has seen a remarkable pattern of growth; in 1995, Kenya’s cut flower exports totaled US$60.7 million.  By 2004, sales had increased to US$253 million.  Roses are easily the most popular cut flower export.  In 1999, the country exported nearly 27 million kilograms of roses.  By 2003, exports had almost doubled to 45.6 kilograms.  Other favourites include carnations, alstromeria and summer flowers. 65% of the business goes to Holland, the flower auctions and for export across Europe. 23% goes to the United Kingdom – most of it to leading supermarkets – while business with Germany, currently at 7% of the total, is growing.

Kenya is the largest supplier of flowers to the EU representing 25% of their imports (75% of the flowers exported are roses) and has an export value of approximately Ksh18.7 billion. Being rural based, the flower industry is an effective conduit for wealth creation and distribution. The Kenya Flower Council, a voluntary association of independent growers and exporters, states that contrary to some schools of thought, flowers do not compete for land with food production as they only occupy 0.1% of the arable land. This is partly because roses, which comprise 60% of the national flower production, are grown in green houses where productivity is closely monitored for optimal yields under controlled environments.  Because of the need to continually monitor efficiency on expensive inputs in the form of chemicals, fertilizers and  water, there is a growing shift towards soil-less production or hydroponics, which allows for recycle of all the inputs. This is desirable from a cost of production point of view but also from an environment protection and conservation standpoint. 

The Council is confident that more families continue to benefit from the industry in one way or another. About 80% of the workers in the industry are non-skilled and approximately 60% of these are women. Most of these women would have found it difficult to find jobs elsewhere due to their limited education, having dropped out of school for various reasons, but mainly because where family resources are scarce, education for the girl child is often sacrificed in favour of the wellbeing of the family.

Working Conditions and the Environment

The flower industry has drawn sharp criticism from environmental and other groups, leading to continuous efforts to improve working conditions and any harmful environmental impact caused.  As the umbrella organisation of flower growers, the Kenya Flower Council (KFC), has drawn up a strict code of practice for its members which stipulates, among other things, protective clothing for workers, safe pesticides and careful use of water. 

The KFC's vision is "to be a recognised world leader in the safe and responsible production of floricultural produce.”   Its members account for around 70% of Kenya’s exports of cut flowers.

With its trained auditors the Council ensures that each farm is visited at least once every six months. International accreditation is assured through the involvement of Bureau Veritas, which independently audits Kenya Flower Council activities. Only certified member farms (Gold and Silver) are allowed to display the KFC “environmentally friendly” logo on their produce and marketing materials as a clear signal to buyers of the commitment and standards achieved by the farms involved in this voluntary initiative.

Employment Opportunities

This emphasis on good practice is itself a boon to the economy as the flower industry also attracts additional investments through the non-governmental organizations and unions who provide a useful service as a watchdog over the industry. 

Employing approximately 100,000 people directly and 1,500,000 indirectly, the sector has grown through the efforts of the private sector with support but little interference from government of Kenya. The industry has been largely self-regulated against market requirements, international labels and additional compliance to Kenya’s national statutes. Horticulture is rurally based and contributes substantially to poverty alleviation in the countryside, offering - together with textiles and tourism - the best opportunity for growth and job creation.

World-Class Standards

The Kenya Flower Council’s Code of Practice has been accredited to EurepGAP, the agreed standards and procedures for the development of good agricultural practice as drawn up by leading retailers belonging to the Euro-Retailer Produce Working Group, a first for the industry and for Kenya.

According to Steve Homer, EurepGAP Ornamentals Technical Standards Committee Chairman, “The Kenya Flower Council is the first national growers’ association to achieve benchmark status with the EurepGAP ornamentals’ scheme and, in doing so, underwrites its position as a genuine world-class standard and dynamic industry association.”

Achieving the EurepGAP benchmark means that Kenya growers can achieve EurepGAP certification and recognition by their global customers but retain ownership and management of their own national scheme without duplication of activity.

For further information, contact Sally Peters, Kenya Flower Council,E-mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Overview

Population:    46.9 million

Currency:       South African Rand

Capitals:   Cape Town (legislative), Pretoria (administrative)                      Bloemfontein (judicial)

Total GDP:     R.1,560 billion

GDP
per Capita:    R.33,253

Exports:        Gold, minerals, diamonds, metals, foods, pulp and                          paper

The South African Government, dominated by the African National Congress (ANC) enjoys a high level of legitimacy. President Thabo Mbeki took succeeded Nelson Mandela as President of the Republic of South Africa in 1999 and was re-elected for a second 5-year term in April 2004, when the ANC achieved two-thirds majorities in the parliamentary and provincial elections.

Economics

South Africa has the continent’s largest economy.  Within the parameters of responsible and conservative macroeconomic policies, development is being increasingly driven by the demand for economic transformation, most notably via the country’s broad-based black economic empowerment (B-BBEE) programme.  South Africa is one of the largest external investors in many African countries and has expanded its trade links within the continent significantly since 1994.

The South African economy has undergone a remarkable transformation.  A largely natural resources based economy has given way to a more dynamic and resilient financial system in which higher value-added manufacturing and services are thriving.  The services sector currently contributes close to 70% to GDP.  In the decade prior to 1994, economic growth averaged less than 1% a year.  Since then it has averaged almost 3% a year.  Economically, 2005 was a very good year for South Africa.  Although inflation increased slightly, there was a slight reduction in unemployment figures while 5% GDP growth and record tax collections reduced the budget deficit to 0.5% of GDP.

Opportunities in South Africa

Opportunities in South Africa include:

• Automotive Industry
• Call Centres
• FIFA Soccer World Cup 2010
• Mining Sector
• Wine Industry
• Infrastructure
• Tourism

AsgiSA

The South African Government has embarked on a new macroeconomic policy designed to step up growth to the next level, conceding that infrastructure constraints and other impediments to foreign investment need to be addressed urgently. AsgiSA is a practical strategy to remove obstacles to sustainable higher rates of growth, employment creation and poverty reduction, with the aim of halving poverty by 2014.

The aim is average growth of 4.5% or higher for the next three years and at least 6% on average from 2010 to 2014. In addition to faster growth, AsgiSA will improve conditions for more job creation. Key to achieving this accelerated and shared growth is the need to increase the levels of foreign and domestic investment in the economy. This will entail a number of interventions including stabilising the currency, delivering a R370 billion infrastructure programme, prioritising key sectors of the economy including ICT, business process outsourcing, tourism and biofuels, accelerating the acquisition of key skills, and building capacity and easing regulatory constraints.

Broad-Based Black Economic Empowerment

Black Economic Empowerment (BEE) is a market system that sets out to ensure a sense of collective ownership and sustainability. It is about normalizing South African society and bringing South Africa’s long excluded majority into the mainstream of the economy.

Broad-based black economic empowerment (B-BBEE) is a progression from the narrow-based black economic empowerment in that it looks more broadly than just at ownership and management. According to the BEE Act, B-BBEE can be defined as “an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about significant increases in the number of black people that manage, own and control the country’s economy, as well as significant decreases in income inequalities”. Black people are defined as South African citizens who are African, Coloured or Indian.

B-BBEE seeks to undo the economic damage of apartheid through a growth strategy that targets inequality within the South African economy. B-BBEE highlights 7 areas or elements of focus: ownership, management, employment equity, skills development, preferential procurement, enterprise development and residual (corporate social investment). Residual or social investment, is about a companies’ investment in people, organisations or communities that is external to the work of that company.

The Codes require a certain percentage to be spent in a number of development areas, such as education, HIV, Skills training, the Environment, Sport and Arts and Culture. At least 75% of the benefits must accrue to natural persons who are black and preferably those in rural communities or part of the government’s rural development and urban renewal programmes.

Alive with Possibility

Our country, as a united nation, has never in its entire history enjoyed such a confluence of encouraging possibilities. Our success will flow from our creativity, our diversity and our sense of community."

President Thabo Mbeki, 2005 State of the Nation Address.

For more information about South Africa:
www.imc.org.za, www.southafrica.info

As Ghana celebrates 50 years of independence, we bring you the statement given by His Excellency, Annan Cato, Ghana’s High Commissioner to the UK, as he launched the 50th Anniversary celebrations in London.

Fellow Ghanaians, Members of the Press, Distinguished invited Guests, Ladies and Gentlemen.  I welcome you warmly to this special media briefing which marks the formal launch of activities in the UK to commemorate the fiftieth anniversary of Ghana’s independence.

The significance of Ghana’s independence on 6th March 1957 is well documented. It was a great event for Ghanaians; but it was also an event of great political significance and therefore was welcomed by all of Africa and by peoples of African descent throughout the world. The immortal declaration by Dr. Kwame Nkrumah that Ghana’s independence had meaning only to the extent that it led to the independence of all of Africa brought hope to a sleepy Continent that was then under the grips of colonialisation and exploitation.

Kwame Nkrumah – Ghana’s first Prime Minister and President

Ghana’s leadership and sacrifices ensured the total liberalisation of the Continent.  But it did more than that. It gave Ghanaians a new confidence to work for improvements in their living conditions. It encouraged people of colour to discover their inner strength and to reject policies, attitudes and practices that had for centuries held them under bondage and subjected them to conditions of humiliation and cruelty.

It is this momentous event that has brought us here today. The opportunity enables me to outdoor the various activities which the High Commission has accepted to commemorate the event. The programme was drawn up after wide consultations with our stakeholders and with a cross-section of the Ghanaian communities in the UK.

Before we begin to savour the joys of this momentous occasion however, it is fitting for me to pay tribute to the founders of our nation and all our national heroes who fought for and sacrificed their lives in some cases, for the independence of the nation. In particular, I salute Osagyefo Dr. Kwame Nkrumah, the first Prime Minister and the first President of the Republic of Ghana for his visionary leadership. Many others, the Veranda Boys, Trade Unionists, Ex-Servicemen teachers and students, market women, made their own contributions to independence. We salute all of them as indeed we salute the current leadership of our country for their wise leadership and for the tolerant and prudent manner in which they have been steering the affairs of the country. It is this leadership of service which has ensured us stability, peace and sustainable development.

Ghana’s Independence re-energized the US Civil Rights Movement

I have already observed that Ghana’s independence had wide-ranging significance in Africa and elsewhere. It ushered in a new era of respect and recognition for the capabilities of peoples of African descent all over the world. It re-energised the civil rights movement in the US and fuelled agitations for self-rule in Africa. There can be little doubt that in the early years at least, Ghana played a role in international affairs much larger than the country’s infant economy and insignificant muscle would have made possible. A detailed assessment of Ghana’s experience as a sovereign country and role in international affairs will take a whole day to recount. For the moment I would like to observe that during the period of our independence, we have grappled with developmental challenges and in some cases we have registered impressive results, while in others, we have not done too well. Many avoidable mistakes have been made and Ghanaians have paid the price for them.

Our failure has been that we have not yet achieved levels of economic development that could have made poverty a thing of the past and some draconian policies of the past have driven too many of our citizens to foreign climes where their services have been appreciated. The tragedy of this exodus is that many of those who departed our shores possessed skills and knowledge which could have helped accelerate the pace of our socio-economic development. But impressive achievements have been made in many other aspects of the country’s life, which outweigh the failings. Particularly in the last decade, Ghanaians have embraced constitutionalism as the way they wish to be governed and have resolved that never again will they allow their rights to be violated. The confidence of Ghanaians has been revived and the resurgence of our economy is bringing the smiles back on the faces of our people.

Ghana Today

Today, Ghana stands at the threshold of becoming a middle income country with economic growth rates topping 6% in 2006. The confidence of the investor community has been restored in the national economy following the stabilisation of macro economic indices which in turn have drawn positive credit ratings internationally including the assessment of a respected institution like Standard & Poors. Ghana’s thriving economy continues to win recognition and admiration of our development partners and major development agencies who have rallied solidly behind the government’s economic agenda.

It is this new Ghana that we are celebrating this year under the theme “Championing African Excellence”. The broad objectives of the occasion would be to celebrate and commemorate Ghana’s achievement as the first country south of the Sahara to attain independence from colonial rule; to reflect on the evolution, development, achievements and setbacks of our country over the past 50 years and to look forward to the future with greater confidence believing that we can achieve excellence in all fields of human endeavour in the coming months and years.

Source and image: Ghana High Commission UK

The Republic of Zambia is a landlocked country in South-Central Africa. It is surrounded by Angola, Zaire, Tanzania, Malawi, Mozambique, Zimbabwe, Botswana, and Namibia. The country is mostly a plateau that rises to 8,000 ft (2,434 metres) in the East.

Although within tropical latitude, the general height of the plateau, averaging 1,300m above sea level, gives Zambia a moderate climate which has earned the country the nickname of the "air conditioned state."

Zambia is populated by more than 70 ethnic groups, many of them Bantu-speaking. It has some spectacular scenery, including the Victoria Falls along the Zambezi River, the Bangweulu Swamps and the Luangwa river valley.

The unspoiled nature of Zambia is perhaps its greatest tourist asset, and the country has many lakes, rivers and beaches.

Key Facts

President: Levy Mwanawasa

Population (2006 est.): 11,502,010 (growth rate: 2.1%);birth rate: 41.0/1000; infant mortality rate: 86.8/1000;life expectancy: 40.0; density per sq mi: 40

Capital: Lusaka, 1,773,300 (metro. area), 1,265,000 (city proper)

Other large cities: Ndola, 349,300; Kitwe, 306,200; Kabwe, 219,600, Chingola, 151,100

Monetary unit: Kwacha

Language: English is the official language in the country. Other vernacular languages include: Bemba, Kaonda, Lozi, Lunda, Luvale, Nyanja, Tonga; about 70 other indigenous languages

Literacy rate: 81% (2003 est.)

Economy: In the late 1960’s, Zambia was the third largest copper miner, after the US and the Soviet Union. World copper prices collapsed in 1975 with devastating effects on the economy. Improved copper prices and investment in mining have today improved prospects for export earnings.

GDP/PPP (2005 est.): $10.23 billion;

GNI per capita: US $490 (World Bank, 2006)

Real growth rate: 5%.

Inflation: 19%.

Agriculture: corn, sorghum, rice, peanuts, sunflower seed, vegetables, flowers, tobacco, cotton, sugarcane, cassava (tapioca), coffee; cattle, goats, pigs, poultry, milk, eggs, hides.

Labour force: 4.8 million; agriculture 85%, industry 6%, services 9%.

Industries: Copper mining and processing, Construction, Foodstuffs, Beverages, Chemicals, Textiles, Fertilizer, and Horticulture.

Natural resources: copper, cobalt, zinc, lead, coal, emeralds, gold, silver, uranium, hydropower.

Exports: $1.947 billion f.o.b. (2005 est.): copper/cobalt 64%, cobalt, electricity, tobacco, flowers, cotton.

Major trading partners: South Africa, UK, Switzerland, Tanzania, Democratic Republic of the Congo, Zimbabwe, UAE (2004).