DURBAN – Africa's stance on the challenges facing the global economy and the impact of the fourth industrial revolution will come under scrutiny at this year’s World Economic Forum on Africa.
The forum gets under way at Durban’s International Convention Centre today.
About 1 000 delegates, including heads of state, global business leaders and non-governmental organisations, are expected to take part.
This year’s theme is “Achieving Inclusive Growth through Responsive and Responsible Leadership”.
WEF Africa 2017 comes as South Africa faces sluggish economic growth, subdued investment and increasing fiscal and economic policy uncertainty amid credit-rating downgrades.
The issue of “inclusive growth” will dominate discussions as the International Monetary Fund forecasts for sub-Saharan African growth are at their lowest level in 20 years.
According to a statement from the South African Presidency, WEF Africa 2017 would deliberate on important issues relating to the achievement of inclusive economic growth globally, with a specific focus on Africa.
“We believe that WEFA came at an opportune time for South Africa and the continent, when the world economy is beginning to pick up,” President Jacob Zuma said.
“We hope that the forum will vigorously discuss the issue of Africa’s development, especially of its infrastructure.”
Asked what WEF Africa would mean to Durban, Dr Iqbal Survé, Sekunjalo executive chairman and stewardship board member of the WEF’s Shaping the Future of Information and Entertainment System Initiative, said the host city had great business potential and he would like to see foreign investors commit to long-term investments.
With the abundance of sugar cane plantations around the city, investors should look at investing in biofuel power plants.
“The people understand the opportunities available in the coastal city and coastal industry development. Import trade between Africa and Europe through Durban’s port could provide a long-term business investment.”
He said the potential of sugar cane plantations was illustrated by Brazil’s production of biofuel from cane.
“Political and business leaders should use this opportunity to convince overseas delegates of Durban’s business potential. People in the city are highly entrepreneurial,” Survé said.
Zeph Ndlovu, president of the Durban and South African Chambers of Commerce and Industry, said the city should seek to catapult its economic growth through engagements during the event.
“We believe Durban is an important destination for foreign direct investment. A number of US and European businesses are doing business with the city and the province. We are now looking at cementing trade relations with Canada, South Korea and Japan, among other countries. This year’s WEFA can only be good news for Durban’s economy,” Ndlovu said.
“Particular attention will be paid to cementing economic ties with our brothers in Africa,” he said.
Durban accounts for between 65% and 70% of the country’s maritime economy and WEFA should provide an opportunity to strengthen this sector.
“We are also looking at resuscitating the textile industry and Toyota here is exporting cars as far as Australia. Most of these countries we are looking at are represented in the forum,” said Ndlovu.
Economic Development MEC Sihle Zikalala said they would look to sell the province as an investment destination, with the Dube TradePort one of the targets for expansion. He said a Scottish company was considering establishing a bus manufacturing plant in the trade zone.
Paul Clark, fund manager and Africa specialist at Ashburton Investments, hoped this year’s summit would show that the continent was on a growth path that would benefit all of its people.
Clark said an enabling environment was the key to improving and growing manufacturing on the continent.
“Reliable electricity, a good transport infrastructure, efficient ports and borders, plus an enabling business environment are just some of the many things that are needed before local innovators and entrepreneurs can compete effectively on the world stage,” he said.
Kunle Elebute, a national senior partner at KPMG in Nigeria and the chairperson of KPMG West Africa, said Africa held many opportunities for growth, although the continent faced a number of challenges.
“However, these opportunities can only be unlocked if we tackle them systematically and if we focus on the core of what drives an economy: infrastructure, its people and its ability to innovate and improve growth,” Elebute said.
Daily News