DOING BUSINESS IN AFRICA 159
Voting in Nigeria. The AU has helped to ensure a far greater level of political stability across the continent
market is also infected by corruption. The best is not hired because his father’s name doesn’t ring any bells, or because he has not been introduced by a senator or minister. The bright side is that this is not a doomsday scenario. It is not meant to scare, but to urge the investor to come in and be pleasantly surprised. The labor market has suffered
from ‘brain drain’. If the brilliant engineers, doctors, researchers and specialists in other disciplines who were constrained to leave for other lands, particularly Europe and the US, for better opportunities could be attracted back home – and African countries are already doing this through programs targeting the diaspora – then there would be sufficient expertise on the continent. These professionals are ready to come back. Another bonus for the investor is
that the labor market is not turbulent. Labor leaders understand the needs of their different countries, and of
labor itself, in a choked employment market and are no longer readily antagonistic to government.
Legislation has been introduced, to encourage both capacity-building through indigenous participation, and incorporation of local items in production where available. These measures will facilitate the participation of indigenous entrepreneurs. It is expected that they will also promote a peaceful business environment, because the locals will not feel left out.
Power shortage Little needs to be said about the power problem in Africa – it is common knowledge. Factories have to produce from a failed natural grid system. This adds to the cost of production, which is then passed to the consumers. Some experts complain that the governments have not fully exploited all the possible sources of power – such as solar, hydro, wind, fossil fuels – and that reliance on
thermal generation, with the associated problems of delivery of gas to stations, is partly responsible for the unsatisfactory situation. The gas sector, therefore, is a fertile field for investment. Clearly, we have made no
attempt to deny the fears of the investor. They are genuine, and that is why the problems have not been glossed over. It would be difficult to do so anyway, because these problems hurt everybody, every day. On the other hand, these problems
are not insurmountable and not disabling. They do, however, definitely make investment much more difficult. More importantly, policymakers
admit that the position is unacceptable, and are making serious efforts to overcome them. Investors are strongly encouraged to come in with their expertise as they could be part of the solution, earning financial rewards from their investment and the goodwill of a grateful people who see the benefits they have brought. n
INVEST IN AFRICA 2011
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