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Global Trade Matters (GTM), the Forum on International Trade Agreements developed to create awareness on issues related to the region’s current and future bilateral and multilateral trade agreements and protocols.
GTM explores ways to promote economic integration that consider local priorities, recognize asymmetries between countries, and support a socially responsible approach to economic and environmental sustainability. GTM will help assess the impact of proposed domestic and international economic policies that affect industries’ competitiveness and the expansion of trade, exports and investment.
GTM tackles such issues through the most comprehensive regional program on International Trade and Investment made up of conferences, roundtable discussions, seminars, workshops and training programs;
A true sentiment of private-public partnership
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A continent's challenge 11/6/2008
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Bountiful in resources and plagued by conflicts, Africa
still has a long way to go before economic integration,
Rehab Ahmed reports
Creating an integrated common African market appeals to most
African countries, but the task is daunting. The African
continent is home to 13 per cent of the world's population,
which is expected to rise from 950 million to 1.8 billion by
2050. This is one reason why Global Trade Matters (GTM), a
Cairo-based forum on international trade agreements,
organized a round table discussion on the future of private
investment in Africa.
The round table on doing business with Africa focused on the
future of the continent's economic unity, and identifying
some of the problems faced by the private sector investing
on the continent. African nations, realizing the importance
of economic unity in dealing with internal economic
problems, have founded many economic communities. The most
notable are the African Unity (AU), the Economic Community
of West African States (ECOWAS), the Common Market for
Eastern and Southern Africa (COMESA), the Economic Community
of Central African States (ECCAS) and Southern Africa
Development Community (SADC). However, with respect to
economic achievements, many of these integration schemes are
perhaps nothing more than free trade arrangements.
South Africa's Ambassador to Cairo Sonto Kudjoe believes
that Africa should not always wait for foreign investments,
but works on increasing inter-trade on the continent.
Speaking at a round table discussion in Cairo two weeks ago,
Kudjoe cited several potential trade relations. In terms of
commodities, she said, Egypt could export cotton and has a
strong petrochemical sector; South Africa is distinguished
by its mineral, auto-motive industry and IT sectors; while
the Ivory Coast is a major producer of cocoa.
According to Ashraf Naguib, managing director of GTM,
already existing African Regional Economic Communities
(RECs) are very weak, and overall are not achieving their
targets. "However, this rule cannot be generalized since
SADC and COMESA are seen as the essential building blocks
for the integration and economic development of the African
continent," stated Naguib. He added that these are the most
appropriate political structures providing pertinent
geographical scale to implement policies aimed at
transforming the social, economic and political well-being
of the African continent. "I believe that inter-African
directed investment is needed, but most African countries
have economic complexities," he said.
African economic integration unions should be judged
independently, since each has its own peculiarities, but
generally, coordinated efforts and funds are needed.
"Regional economic unions are doing well in one area or the
other," noted Kudjoe. "SADC has strong infrastructure and
good transportation which helps countries trade easily among
it." On the other hand, she continued, "we face a situation
of duplicating efforts because of overlapping membership
between SADC and COMESA."
South Africa's ambassador further explained that projects of
the same nature are duplicated as well. "The lack of
coordination among regional entities raises the question of
how much Africans can really benefit from them," Kudjoe
stated. "If they integrate they would be able to consolidate
their resources and focus their efforts."
For his part, Bassel Hussein, chief investment officer at
IT Ventures, underlined that African regional blocs need to
further involve the private sector and be more empowered via
activating already existing associations. Naguib concurred,
saying that, "African leaders should make use of private
sector funds to help develop infrastructure projects."
But Hussein pointed out that the major challenges facing the
private sector in Africa are the political risks represented
in internal and external wars, conflicts and riots, as well
as shaky regulatory laws. "When the private sector goes to
invest in any African country, it needs to have solid and
binding agreements with local governments," he said.
Political instability and armed conflicts drive back local,
neighboring and international private investors.
Ambitiously, Hussein suggested that warring nations should
end all conflicts in order to make use of the continent's
mineral and human resources, as well as raw materials. He
noted that politically stable countries -- such as Egypt,
Tunisia, Morocco and South Africa -- attract foreign
investments and their economies are doing well. On the other
hand, Hussein continued, countries like Kenya, Senegal,
Nigeria, Mozambique and the Ivory Coast are emerging
economies, while Central Africa still has a long way to go
in achieving political constancy and eventually appealing to
foreign ventures.
As stated, there are various levels of economic development
in terms of regions and countries which will impact how fast
Africa moves towards economic integration. Hebatallah
El-Serafi, from the Research and Development Department at
the Cairo Stock Exchange, emphasized that most African
countries have neither efficient microeconomics, currency
convertibility nor a unified currency.
Africa's frail infrastructure is usually cited as another
major hurdle on the road to African economic integration.
Focusing on Egypt, Naguib argued that, "Egypt itself does
not have a reliable internal infrastructure. Consequently,
trade between northern and southern Egypt is lacking, as is
trade with Sudan, or even further south." GTM's managing
director further pointed out the fact that Egyptians define
themselves as Arabs, Muslims, Mediterranean, and finally as
Africans. "This means that they do not focus on their
African identity as much as South Africans do," Naguib said.
El-Serafi suggested that African countries should begin by
establishing bilateral cross- listing and cross-trading
agreements and regional blocs. This will be the focal point
for a pan- African common market capable of competing with
the Chinese, for instance, on the African and global arena.
But obstacles facing African economic unity will not vanish
overnight, especially that each nation needs to individually
decide its requirements and priorities before being part of
an African entity. In the belief that Africa must play a
more active role in the era of globalization, the African
Union (AU) is developing a strategic economic partnership
with Asia, India, China and Europe. Kudjoe noted that, "we
are now, as a multilateral body representing the African
continent, have multilateral agreements with other countries."
5 - 11 June 2008
Issue No. 900
Published in Cairo by AL-AHRAM
© Copyright Al-Ahram Weekly. All rights reserved
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GTM annouces the GTMCASE Award winners for 2008 at GTMCASE Annual Awards Ceremony and Gala Dinner 16/3/2008
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GTMCASE Awards Committee announced the winners of the
GTMCASE Awards 2008 at Egypt's top business event held at
the Four Seasons Nile Plaza Hotel. The Awards were
presented by Mr. Maged Shawki, Chairman of the CASE
and Mr. Andreas Bruderer Country Director Credit Suisse,
Egypt, Libya and Malta. The event was attended by 300 of
the nations top businessmen and women and a host of
foreign ambassadors and vip quests.
The GTMCASE Awards 2008 featured 6 main categories of
awards:
Best Corporate Governance Award - Egypt Telecom /
Best Corporate Social Responsibility Award - CEMEX /
Best Investors Relations Award - OCI /
Best Financial Transparency Award - CIB /
Best Woman Banker of the Year Award - Ms. Sahar El Salab
(CIB) /
Best Representative Bank Award - Credit Suisse /
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