Subject: [wanabidii] Obama the Africapitalist: Creating a Private Sector Development Model for the World to Follow (Op-ed by Tony O. Elumelu)
From: "News Release - African Press Organization (APO)" <no-reply@apo-opa.com>
To: "News Release - African Press Organization (APO)" <no-reply@apo-opa.com>
CC:
If you cannot read that message, click here
<http://appablog.wordpress.com/2013/07/08/obama-the-africapitalist-creating-
a-private-sector-development-model-for-the-world-to-follow-by-tony-o-elumelu
/> .
<http://www.heirsholdings.com/> heirs-holdings.JPG
OPINION PIECE
Obama the Africapitalist: Creating a Private Sector Development Model for
the World to Follow - Tony O. Elumelu*
Op-ed by Tony O. Elumelu, Founder of The Tony Elumelu Foundation, Chairman
of Heirs Holdings Limited
<http://www.photos.apo-opa.com/plog-content/images/apo/photos/tony-elumelu.j
pg> Tony-Elumelu_.JPG LAGOS, Nigeria, July 8, 2013/ -- Op-ed by Tony O.
Elumelu, Founder of The Tony Elumelu Foundation, Chairman of Heirs Holdings
Limited (http://www.heirsholdings.com):
Last week was the first time, in my memory, that a U.S. president came to
Africa with investment at the top of his agenda and prioritised meeting with
the continent's business leaders, who are the true drivers of development.
President Obama should be congratulated for his vision, and for providing
the clearest proof yet that the rules of engagement with Africa are
genuinely changing.
Photo Tony Elumelu:
http://www.photos.apo-opa.com/plog-content/images/apo/photos/tony-elumelu.jp
g
The age of aid is ending. The type of aid that will help Africa most, and
should receive the highest priority, is aid for business. I believe that the
African private sector has the power to transform the continent through
long-term capital investments, creating both economic prosperity and social
wealth. I call this development approach "Africapitalism," and without a
doubt, it holds the most promise for the sustainable development of Africa.
So it was refreshing to see African businesses at the table, financing and
investing as partners, and making sure that Africa asserts its proper role
in this opportunity.
I can already feel the impact of Obama's new dialogue with Africa. In
interviews I had with international media covering his trip, aid and
corruption were not the focus, thankfully. Journalists addressed topics like
"capital," "investment," and "trade."
The impact of this shift will be immense.
Power is the single biggest obstacle to Africa's development, and as such,
it is the most catalytic and strategic investment anyone can make in Africa.
That is why President Obama's focus is so timely-and so necessary. Doubling
our generating capacity will double Africa's GDP, and move us toward
sustainable, domestically led growth. Given its economic importance, the
power sector also presents an attractive investment opportunity for
long-term investors: there is little competition, and so the return, when it
comes, will be high. It will be similar to returns that early investors in
African telecommunications realised before the sector became saturated and
highly competitive.
As an investor I believe in doing well and doing good. Investing in the
power sector meets both criteria. That is why Heirs Holdings has committed
US$2.5 billion in investment that will expand our recently acquired Nigerian
power plant at Ughelli, as well as develop new brown and green-field
projects across Africa.
But filling Africa's energy gap requires long-term investment and a huge
capital outlay: it will cost US$1billion just to acquire the Ughelli plant
and bring it up to its full installed capacity of 1000 megawatts. Given
Africa's huge capital requirements for the power sector, an initiative like
Power Africa is essential for bringing together international investors and
financial institutions to support Africa's changing power paradigm.
Nigeria was one of only seven countries included in the program-countries at
the forefront of power reform in Africa. The world-class privatization
process personally driven by President Goodluck Jonathan demonstrates that
Nigeria deserves that place. And it means that Nigeria's power sector will
have access to preferential terms and an unprecedented focus by funders
looking to deliver on their public commitments under the Power Africa
initiative. Power Africa also offers a model for the 47 African countries
that did not make the initial pilot list. The continent will not close its
energy gap unless more African leaders urgently reform their policies and
encourage this kind of private sector-led investment.
As an entrepreneur, I know that attracting capital is not and has never been
the problem. I have always believed that if the policies and environment are
right, investment will flow into Africa. Investors need to know that the
rule of law and the protection of property rights are assured-this is one of
capital's most important requirements. That is why I urge global leaders
like President Obama to impress upon more African leaders that
investment-led development requires more investor-friendly policies. I see a
willingness in African leaders to seize these opportunities, but they need
support and in some cases direction. The vision may be clear, but they may
not know how to get there.
Rwandan President Paul Kagame is another positive role model for the
continent-a progressive African leader who evinces both vision and
commitment. Rwanda now ranks higher than any other sub-Saharan African
country on global competitiveness, and ranks third in Africa overall.
President Kagame and his team have created the sort of enabling environment
that investors can only dream about elsewhere in Africa. For this reason,
Heirs Holdings, Berggruen Holdings and 50 Ventures, chose Rwanda as the home
for our East Africa Commodity Exchange (EAX), which will launch on July
15th.
The EAX will bring liquidity, transparency, and pricing power to farmers,
while reducing lending risk to banks. The impact will be to create social
wealth in local communities, and support development in the region. Like
investments in the power sector, the EAX demonstrates Africapitalism in
action: highlighting the huge development role of the African private
sector. When I met with President Kagame last year, he immediately
understood the significance of a commodity exchange for the East African
Region, and he pushed hard to make it happen. The Rwandan government
delivered on all its promises, which enabled our investor group to deliver
on our promises: the right investment team, partnering with a supportive
government, will improve the lives of farmers across the region.
By following these models-of Power Africa and the EAX-we can transform the
entire African economy, starting with the power sector. One day, the 70% of
Africans who don't currently have access to consistent affordable power,
will take it for granted that they can flick a switch and transform their
homes, offices and schools. And they will remember Obama's visit. Because
with private sector involvement now guaranteed, that day will soon become a
reality.
In Tanzania I shook hands with an Africapitalist, who also happened to be
the most powerful man in the world. It was a hugely significant event for
me, a life-long African investor, and I believe Obama's visit was a
significant event for Africa. It will refocus the world's attention on
investment in Africa. It is already changing perceptions and mobilizing
international investors. It will even change the view of many African
investors, who will realize that we must lead the way. Because if we come
forward and show confidence in our continent by directing our savings into
long-term investments in Africa, others will follow. This is one of the
pillars of Africapitalism: Africans for Africa.
Obama's visit was a milestone, one long hoped for, and one with lasting
impact. It confirms that the age of aid is ending. It is now time for the
private sector to lead.
* Tony O. Elumelu is Founder of The Tony Elumelu Foundation, Chairman of
Heirs Holdings Limited, and is the leading proponent of Africapitalism; the
private sector's commitment to the economic transformation of Africa.
Distributed by the African Press Organization on behalf of Heirs Holdings.
For more information:
Moky Makura
Heirs Holdings
Email: <mailto:moky.makura@heirsholdings.com> moky.makura@heirsholdings.com
T: +234-1-277-4641
SOURCE
Heirs Holdings
<http://www.apo-opa.org/safe-sender-instructions/> Safe Sender Instructions
UNSUBSCRIBE <mailto:sec.sg@apo-mail.org?subject=UNSUBSCRIBE%20ELU>
--
Send Emails to wanabidii@googlegroups.com
Kujiondoa Tuma Email kwenda
wanabidii+unsubscribe@googlegroups.com Utapata Email ya kudhibitisha ukishatuma
Disclaimer:
Everyone posting to this Forum bears the sole responsibility for any legal consequences of his or her postings, and hence statements and facts must be presented responsibly. Your continued membership signifies that you agree to this disclaimer and pledge to abide by our Rules and Guidelines.
---
You received this message because you are subscribed to the Google Groups "Wanabidii" group.
To unsubscribe from this group and stop receiving emails from it, send an email to wanabidii+unsubscribe@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.
--
Unapokea Email hizi kwa sababu umejiunga na Jukwaa la 'Mabadiliko'.
Kuchangia mada tuma kwenye Email hii: mabadilikotanzania@googlegroups.com
Kujiondoa Tuma Email kwenda; mabadilikotanzania+unsubscribe@googlegroups.com
Utapokea Email ya kudhibitisha kujiondoa kwako.
TEMBELEA Facebook yetu:
http://www.facebook.com/MabadilikoForums?ref=hl
For more options, visit this group at:
http://groups.google.com/group/mabadilikotanzania?hl=en?hl=en
---
You received this message because you are subscribed to the Google Groups "Mabadiliko Forums" group.
To unsubscribe from this group and stop receiving emails from it, send an email to mabadilikotanzania+unsubscribe@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.
0 Comments