By Mathews Phosa
We gather to celebrate the remarkable resilience of Africa, a continent that has endured colonialism, the capture of its resources and a host of dictators as well as one party rule and triumphed through adversity, and ended up reshaping the global stage across various domains.
Yet, to quote Harold McMillan, the winds of change are (again) blowing accords to our continent. We have matured to understand that the major players in the geopolitical race will always attempt to dominate the use of our abundant resources.
We have hopefully lost our innocence and will, in current and future negotiations ensure that we shape better deals for ourselves.
The continent is rich in minerals and natural resources, including oil, gas, minerals, and agricultural products, which contribute significantly to global supply chains.
Despite challenges such as infrastructure gaps and political instability in some regions, Africa's economic importance continues to grow as countries invest in infrastructure development and regional integration.
As a continent, we have individual economies that have been growing consistently over the past three decades.
What mostly unites all the nations of Africa is a desire to grow our economies and to create a better life for all our people.
This very desire should shape our message to global investors. We are not for sale. We are, however, open to talks about how we co-operate.
African nations are ruled by a variety of leaders, all the way from democratically elected politicians to dictators or military juntas that seized power from elected leaders through violent means or otherwise. Often the wealth of nations on our continent is reflected in the form of its government.
We are living on the most populous continent after Asia – Africa is home to the world’s youngest and fastest-growing population, rapid urbanisation with mushrooming cities, and innovations in everything from fintech and clean energy to advances in agriculture.
Africa therefore has its challenges.
Strong principled leadership in China, India, Singapore, Indonesia, Malaysia and a host of other nations has lifted entire populations out of abject poverty – broken the back of the poverty cycle – over the past four decades.
With careful nurturing and investment in finance and accounting, African innovation and entrepreneurship are transforming traditional practices. Fintech solutions are already democratising access to financial services, empowering millions previously excluded from the formal economy. It is proven that this revolution not only enhances economic stability but also fosters inclusive growth, crucial for sustainable development.
Strong and ethical Public Management and Law practices should uphold Africa's commitment to democracy and the rule of law. Vigorous and clean institutions are fundamental to economic stability and ethical governance, fostering investor confidence and sustainable development.
Ethics in business and legal spaces are paramount. African entrepreneurs must embrace ethical practices, driving responsible entrepreneurship amidst challenges like climate change and renewable energy.
We cannot wait for the so-called rich nations – they have their own challenges – to bail us out.
Despite all the positive achievements, our continent is severely hamstrung by a common purpose. This challenge is demonstrated by the slow progress in creating project driven regional and continental structures.
Leaders should show that they understand that cross border and continental co-operation can transform our fortunes.
Political stability across the African continent varies widely among nations. While some countries have achieved relative stability and democratic governance, others continue to face challenges such as political unrest, corruption, and armed conflict.
Nations such as South Africa, Ghana, and Botswana have established stable democratic systems and robust economies, contributing to regional peace and development.
Overcoming Africa’s heavy reliance on resource exports in favour of economic investment to produce final products locally, requires strategic planning and concerted efforts at various levels.
While the continent possesses abundant natural resources, exporting raw materials often limits economic value addition and leaves countries vulnerable to commodity price fluctuations.
Shifting towards producing finished goods necessitates investing in infrastructure, technology, and skills development to support local industries and manufacturing capabilities.
The many time-consuming layers of bureaucracy created more for unproductive job creation than for economic liberation needs a sharp knife of destruction.
Economic liberation calls for policies that encourage domestic value addition, such as tax incentives, favourable business environments, and access to finance for entrepreneurs and small businesses.
Moreover, fostering regional integration and value driven trade agreements can create larger markets for African-made products, boosting competitiveness globally.
African leaders need to take care when evaluating foreign investment in their countries, particularly by major global players like China, Russia, Germany, France which continue milking our oilfields; the United States, and multinational corporations, since investment conditions often raise concerns about neocolonialism through economic means.
While foreign investment can bring infrastructure development and employment opportunities, the absence of robust regulatory frameworks and enforcement mechanisms in many African countries leave them vulnerable to exploitation.
Addressing these challenges requires African nations to assert greater control over their resources, negotiate fairer terms of engagement, and prioritise investments that promote sustainable development and inclusive growth for their people.
Africa has been marred by a complex tapestry of wars, each characterised by conflict, crime, corruption, and foreign interests. From civil wars fuelled by ethnic tensions and political instability to conflict over resources such as diamonds, oil, and land, the continent has witnessed prolonged periods of violence and suffering.
To solve the many entrenched conflicts and achieve freedom, peace, and prosperity in Africa, multifaceted approaches are crucial. Strengthening democratic institutions and ensuring inclusive political processes can help mitigate the grievances that often fuel conflicts.
Inter-African and international co-operation is vital, focusing on conflict prevention, mediation, and peace-building efforts that respect African sovereignty and prioritise local ownership.
In confronting the complexities of foreign investment in Africa, the path forward demands a balanced approach that safeguards the continent’s economic sovereignty and promotes genuine partnership.
African nations must strengthen their regulatory frameworks to ensure that investments contribute to sustainable development, industrialisation, and local capacity building. This includes negotiating equitable agreements that prioritise long-term benefits for local communities and foster inclusive growth.
International co-operation should be guided by principles of mutual respect and transparency, empowering African states to harness their resources for the collective prosperity of their populations. By prioritising these principles, Africa can navigate the challenges posed by foreign investment and strive towards a future of economic autonomy, resilience, and equitable development.
Ultimately, Africa's resilience in navigating diverse challenges resonates globally. Together, let us champion Africa's journey — inspiring, transformative, and steadfast in reshaping the global stage for generations to come.
Dr. Mathews Phosa is the ANC’s former Treasurer-General and former Premier of Mpumalanga. This an edited version of his statement to the Mbali Conference hosted by the University of Zululand in Richards Bay on 6 August 2024.