As Millions Mark Africa Day, World Bank Vice President Points Investors to Africa's 'Endless Possibilities'

Africa offers endless possibilities to investors, the World Bank said Wednesday.

Investors going into Africa today are taking advantage of the continents 

endless possibilities, World Bank Vice President for the Africa Region 

Obiageli Ezekwesili told investors and African ambassadors accredited to the 

United States in a speech delivered as part of celebrations marking Africa Day.

Observed each year on May 25, the day commemorates the founding in 1963 of the 

Organization of African Unity, the forerunner organization of the African Union.

Ms Ezekwesili noted that at a time of major global economic turmoil when even 

rich economies need bailouts, debt buy-backs and IMF funding to stay afloat, 

Africa is poised to rise as one of the worlds most important growth poles in a 

multi-polar world.

Africa has rebounded from the global financial and economic crisis, posting GDP 

growth of 4.5 percent last year. The continents GDP is expected to reach 5.1 

percent and 5.8 percent in 2011 and 2012 respectively.

For many, many years, we have been told that Africa has a bright future& that 

future is now. This is Africas time, Ms. Ezekwesili said.

Capital flows to Sub-Saharan Africa rose from US$35.8 billion in 2009 to an 

estimated US$41.1 billion in 2010 and are expected to reach US$48.5 billion 

this year.

Ms. Ezekwesili applauded investors flocking to Africa, encouraging them to 

ignore the stereotypes in media reports and films that continue to paint the 

continent as a region of misery, disease and war.

 At the World Bank, we are bullish about Africa. We believe that the continent 

is perhaps at about the same point today as India 20 years ago and China 30 

years ago& just before their economic boom set in, Ms. Ezekwesili said.

Foreign direct investments to the continent have risen nearly nine-fold  from 

a mere US$10 billion in 2000 to US$88 billion in 2008  dwarfing flows to India 

(US$42 billion in 2008) and approaching flows to China (US$108 billion). The 

African Union estimates that foreign direct investments to continent could 

reach US$150 billion by 2015.  

Understanding that something new is, indeed, happening in Africa, the Wall 

Street Journal argued in a recent article that Catching Africas Investment 

Bug is Proving Contagious.

While Africa is, indeed, open for business, it is not open to just any 

business, Ms. Ezekwesili cautioned. She explained that the continent can only 

afford responsible investments. She described these as investments that are 

people-focused and pro-poor; promote Africas efforts to achieve the Millennium 

Development Goals; promote transparency, accountability and good governance; 

build innovative partnerships with and within the private sector, helping to 

create jobs, promote prosperity; foster local enterprises, grow opportunities 

for trade, create new or expand existing markets; bring about the emergence of 

an African middle class and build the skills Africans need to compete in 

todays global and knowledge-based economy.

Africa does not need the irresponsible investments that have for many decades 

unleashed corruption and degrading conditions upon those they claim to serve, 

Ms. Ezekwesili said.

In particular, Ms. Ezekwesili pointed to agriculture as Africas next big 

thing, provided that governments across the continent continue implementing 

the right reforms, policy choices and institutions. Although agriculture is the 

source of livelihoods for 70 percent of Africans, the sector remains 

underfunded. Africa accounts for more than a quarter of the worlds arable 

land, and yet currently generates only 10 percent of global agricultural output.

African governments, including those of you in diplomatic service, who can be 

Africas best salespersons, need to do their part, Ms. Ezekwesili told the 

African ambassadors. She cited the need for African governments to honor the 

pledge they made in Maputo in 2002 to provide at least 12 percent of their 

national budgets to agriculture.

Recalling the direct involvement of thousands of Africans in the formulation of 

the World Banks new strategy for Africa, Ms. Ezekwesili pledged that her 

institution will stay on the side of the poor, helping to create the kind of 

new partnerships needed by Africans to protect their rights and preserve their 

dignity and pride.

Contacts: 

In Washington: Herbert Boh (202) 473 3548, hboh@worldbank.org;

 Aby K. Touré (202) 458-3202, akonate@worldbank.org.

For more information, please visit: www.worldbank.org/afr 

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