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Stephen Hayes TV
Interview on VOA
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CCA President's Message
from the CCA U.S.-South Africa Business Forum
 Optimism
about Africa, or at least large parts of Africa, is
understandable given the continent's promise and
consistently rising levels of investment over the past
decade. As I and others continue to say, it is in America's
highest national interests, politically and economically, to
increase U.S. private investment in Africa, particularly
through much stronger cooperation between the public and
private sectors. With consistency, we have stated that the
U.S. needs to redirect national policy from one that has
seen Africa as a perpetual aid destination and supplicant to
one that works with Africa so that it is a destinationfor
investment and the development of jobs. Few in Africa are
truly helped when we constantly pour aid into the continent,
with little to show for it except limited progress in
development, democracy or transparency.
However, progress seen in countries, like Botswana, Malawi,
Mauritius, Mozambique, Namibia, Rwanda, South Africa and
Zambia, is never immune from retrograde political events and
economic actions that have taken place in other countries,
like Madagascar, Guinea, Somalia, Eritrea and Niger. These
are often seen as relatively minor nuisances in the greater
scheme of things, and anomalies to an otherwise progressive
course for most of the African continent.
Much more worrisome, though, are trends in some countries
that have been viewed by many as among the best hopes and
are governed at the top by the best of leaders. These
countries continue to be recommended as among the most
promising investment destinations, but I believe that now is
the time to raise early storm warnings. I am not talking
here about impending coups d'état, but rather
changes, some subtle, others less so,that threaten to
destroy the progress of a decade or more.
 For
example, Ghana was chosen by President Barack Obama for his
first presidential visit to Africa because of the country's
free elections and peaceful transitions of political power.
However, many business contracts made under Ghana's previous
government are now being reviewed and rebid, making it a
questionable proposition for new investment. Tanzania, with
its own review of past contracts and a series of new laws,
is also now making it much more difficult for the private
sector to develop. If a contract is to be reviewed with
every new government, how can one really invest for the
long-term? It is as if each new government in some countries
distrusts its predecessors and wants to undo all the
suspected grievances. To some extent, this is
understandable, but transitions in government should be
accompanied by consistency in law and sanctity of contract.
This is why an independent judiciary is essential to any
nation's stability and the trust of its citizens, let alone
its investors.
Voice of America: Stephen
Hayes Interview on Conference
If actions such as those in Ghana and Tanzania become the
norm across Africa, the continent will lose significant
amounts of new private sector investment. I wonder if the
entry into the African marketplace of countries that have no
legal obligation to abide by OECD rules has drastically
changed the progress of civil societies and has set back
progress made in fostering a more business-friendly climate
in Africa. This new investment, especially in
infrastructure, has and will benefit Africa significantly,
and as such it should be welcomed. What should not be as
readily welcomed is the subtle corrupting influence on whole
societies, creating a government less responsive to progress
in civil society and the development of a healthy private
sector. One also wonders if the discovery of oil, as well as
the hope for its discovery in many countries in Africa, will
carry with it the infamous "Dutch disease", or whether
societies can really inoculate themselves from the toxins of
greed that poison the development and the sharing of
wealth.
The early signs are not encouraging. It is not enough
that a nation elect a highly competent and honest president.
Nor is it enough simply to hold elections and peacefully
pass on power. These are but elements of a democratic and
transparent society. Leadership is important, but so too is
a system of responsibility and reason from the ministerial
level to the management of cities and states. CCA has always
believed that the development of the private sector is vital
to the development of the middle class, and that a strong
and broad middle class is vital to a stable and progressive
society. We do not believe that business should be
completely unfettered, as it too must hold to the laws of
any society in which it operates. However, it is equally
important that businesses have much more freedom to operate
than now exists in many nations, and that the transition of
political power includes more than the peaceful replacement
of one leader with another.
About CCA
The Corporate Council on Africa (CCA), established in
1993, is at the forefront of strengthening and facilitating
the commercial relationship between the United States and
the African continent. CCA works closely with governments,
multilateral groups and business to improve the African
continent's trade and investment climate, and to raise the
profile of Africa in the U.S. business community. CCA
programs are designed to bring together potential business
partners and raise Africa's investment profile in the U.S.
by developing critical contacts and business relationships
and providing a forum for the exchange of information and
ideas.
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