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THE RISING AFRICA MAGAZINE /// 00


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IN THIS ISSUE OF

The Canadian Council on Africa Magazine, Winter 2013, Issue 3

10

A WARM Handshake with Prime Minister Harper in Senegal

12

Benoit La Salle

The new Chair of the Board of Directors for the Canadian Council on Africa

16

22

The Rising Africa Team Lucien Bradet President, CEO CCAfrica Ottawa Chris Kianza Vice President, Business Development and Member Relations CCAfrica Ottawa Marje Aksli Editor-in-Chief CCAfrica Ottawa Karl Hasenhuendl Graphic Designer CCAfrica Ottawa Léonie Perron Project Manager CCAfrica Montréal Dawit Hailu Editor CCAfrica Ottawa Kadidia Moussolo Translator CCAfrica Ottawa Yacine Sawadogo Translator CCAfrica Montréal Yola Mathieu-Koné Translator CCAfrica Montréal

7 Questions to the Canadian CSR Councellor

Editorial

2

VIEW OUR DIGITAL EDITION ONLINE AT WWW.CCAFRICA.CA FOR ADDITIONAL CONTENT The Launch of the Rising Africa in Montreal 35

Foundation BDA Trains the Next Generation of Congolese Green Entrepreneurs

3

Nigeria Frontier Emerging Market

36

New Canadian Ambassadors in Africa

4

Brazil in Africa

39

Reducing Poverty - Building Tomorrow’s Markets

6

Playing Catch Up With China in Africa

40

Canada 6th Largest Donor at the AfDB

8

Gov. Efficiency Through the Lens of the Postal Service

42

Factual Data on Land “Grabs”

44

Co-operative Movement For a Greater Good

46

Dundee Capital Markets

48

Member News

49

Missions and Events

51

Resource Guide

58

4 P’s of Africa

Africa Is Not a Monolithic Entity

18

Raising the Bar for Doing Business in Tanzania

21

Discovering Opportunities in Rwanda

23

The Power of Alliances

24

The Limitations of CSR

26

The Balancing Act of Canadian Mining in Africa

28

Africa and the Government of Quebec

30

IT’S TIME FOR AFRICA - The New Investment Destination

32

th

CCAfrica’s 10 Anniversary Gala and Symposium

63

CCAfrica Member List

68

CONNECT WITH US USING SOCIAL MEDIA

Please contact our head of marketing and publications Chris Kianza for more details on how to get your advertisement in our next issue. Copyright 2012 CCAfrica All rights to the pictures and articles within belong to CCAfrica and its members.


Editorial: Taking the Next

Step in Canada-Africa Relations

D

ear Reader, Let me for a second assume that you have never heard of The Canadian Council on Africa before. Since the current edition of The Rising Africa is distributed in Cape Town, South Africa, as well, chances are you do not know what we do. If this is the case, allow me to give you a 30-second elevator pitch about our organisation: Our member-based NGO is a “common sense organisation” for Africa in Canada. We work on what I call the realistic situation in Africa. We do not dream, we do not preach, we do not wag fingers or whine. We make every effort to give a reality check on Africa for our members but also for the general public. We work with diverse peoples, organisations and companies working in all African countries in realistic situations. We wish to connect the policy makers and the Canadian boots of the ground, be these mining companies, colleges and universities or infrastructure companies, for mutual benefits. We also wish to include African diasporas into the dialogue with Canadian leaders, allowing their voice to

be heard and their skills and knowledge to boost Canadian trade with Africa. We, in The Canadian Council on Africa, are convinced that the next step towards further development in Africa cannot be achieved with aid alone. Africa needs innovative development financing models. It needs trade, investments and business, as well. This is what the African ambassadors in Ottawa have repeatedly told me. But naturally, Canada’s policy towards Africa should be based on a win-win relationship; it cannot be achieved at the expense of Africans’ well-being. We welcome Canadian International Development Agency’s initiative to include the private sector to the development issues. As you see on the quote below, the Canadian minister of International Co-operation Julian Fantino recognised the rapidly evolving global context and announced that by reducing poverty Canada will help building tomorrow’s markets. We agree with the honourable minister that we are operating in a new world of development. He pointed rightfully out that while Canada provided five billion dollars in development assistance last year, the FDI outpaces aid “at a rate of five to one”. Moreover, he stressed, remittances from Canada to developing countries “exceeded CIDA’s total aid program three times”. Further, a couple of years ago, he revealed Canada’s private donations to developing countries were around two billion dollars. While discussing CIDA’s Economic Growth Strategy and the opportunities in foreign markets for Canadian organisations, the minister singled the extractive industry out as a key partner.

Why the mining sector, many asked in Canada. As Pierre Boivin, a member of CCAfrica’s Board of Directors claims in this edition: “Canada has what Africa needs right now”, using an eloquent hand-and-glove metaphor. We have skills in mining, which can be passed on to African specialists, to allow the necessary manufacturing and service industry to follow. For example, you can read what our Chair of the Board, Benoit La Salle says about the way he, a gold mine owner in Burkina Faso, approaches mining. Despite what many scholars and activists generalise about mining in Africa, there are no human rights violations; there is no violence or ecological degradation in his mine. Instead, by using bottom-up approach his mine has made it possible for the several agricultural supply chains being created around the mining facility. While the mine only employs roughly 2000 people, more than ten times more people work in the local small businesses which have sprouted around the mine. Working along the lines of Millennium Development Goals, the mine has contributed to the rise of school enrolments from 20% to 80%, while the average grade of students is higher than the national average. Would you call it Corporate Social Responsibility? Or is it sustainable economic development, instead? Personally, I would call it responsible Canadian business in Africa. CCAfrica and its members are committed to this approach. Lucien Bradet President and CEO

“The fact is developing countries are using natural resources - more and more - as a key economic driver to create jobs and provide governments with revenue to deliver services. In 2008 alone, exports of oil and minerals from Africa, Asia, and Central and South America were worth about $1 trillion—nine times the value of international development assistance to these regions. Trends show that this will only increase. This is why it is important that extractive industries work in a way that benefits everyone involved. And this is why CIDA will continue to work with the sector.”

The Honourable Julian Fantino, Minister of International Cooperation for The Economic Club of Canada “Reducing Poverty – Building Tomorrow’s Markets” November 23, 2012, Toronto, Ontario

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Trains the Next Generation of Congolese Green Entrepreneurs

T

Article by Jérôme Leblanc he biodiversity of the African continent and especially that of the Congo River Basin Forest is exceptionally rich. Properly grown and harvested, valueadded plants (also known as botanicals) can be packaged and marketed to meet the needs of international markets of the biopharmaceutical, cosmetics and nutraceutical industries, as well as to supply international organizations and institutions responsible for the fight against food insecurity. (Nutraceuticals are food products that provide health and medical benefits.) Becoming competent business leader in controlling the supply of this value added sector, the certified BDA eco-enterprise can become the engine of economic development, providing social and environmental benefits for communities. BDA is firmly anchored in a vibrant and creative green economy that has lasting benefits and value for all. To honour the contribution of its partners to the Plant Action program, to sustainable development and green economy, BDA organized an exhibition on the sidelines of the Francophonie Summit in Kinshasa in October 2012. The title of the exhibition was Green economy: Entrepreneurship and Responsible Investment: Drivers of sustainable development in Africa. Consisting of large vertical panels with attractive design, the exhibition captured the interest of more than a thousand visitors. Congolese from all the provinces were stunned to learn about the wealth and the economic potential that lies in the Congolese biodiversity. In addition, hundreds of people left their names in our attendance book to participate in the next training program Plant Action starting in 2013. The first phase of the selection process

of participants to the training program started in December 2012. Receiving financial support from the Congo Basin Forest Fund from 2012 to 2015, BDA will train two cohorts of “ecopreneurs” (ecologically responsible entrepreneurs) in the cultivation, processing and international marketing of African botanicals (plants with high added value), in strict compliance with quality standards issued by the World Health Organization. The formation of each cohort lasts 18 months and is followed by a phase of business mentoring to ensure the start of the enterprise on time. You can find more information on www.fondationbda.org about our next recruitment phase. To bring the issues of sustainable economic development to highlight, BDA also organized an official ceremony with many guests. BDA was happy to host The Honourable Senator Claude Carignan representing the Honourable Bernard Valcourt, a Minister of State of Canada; the Honourable Jean-François Lisée, Minister of International Relations, foreign Trade and Francophone Quebec, His Excellency Vahamwiti Mukesyayira, Minister of Agriculture and Rural Development of the DRC and His Excellency Lukwebo Bahati, Minister of Employment, Labour and Social Welfare of the DRC. The organization of this exhibition was made possible through the generous support of the ministry of International Relations, La Francophonie and Foreign Trade of Quebec, who at heart supports the challenges of sustainable development and the green economy.

Eco-preneurs - ecologically responsible entrepreneurs - at work

Several prominent figures also came to the exhibition, such as the Rector of the University Senghor, Professor Albert Heavy, the governor of South Kivu Marcellin Cishambo, the governor of Katanga Moïse Katumbi, and the Minister of Planning in the DRC Célestin Vunabandi. Exhibition highlighted the BDA`s commitment to sustainable development and to the green economy

Jérôme Leblanc is a Development Officer in the Fondation biotechnologie pour le développement durable en Afrique (BDA).

THE RISING AFRICA MAGAZINE /// 3


New

Canadian Ambassadors in Africa

Michael Grant becomes Ambassador to Libya. Michael Grant worked as a sales representative for an American mineral-products company, joining the public service in 1993 and becoming a desk officer for Central and Eastern Europe with External Affairs and International Trade Canada. Mr. Grant worked with the West Bank and Gaza and UN Affairs Division until 2001, when he was made head of the Economic Section at the Canadian embassy to Mexico, where he remained until 2004. Upon his return to Ottawa, he worked as a Middle East analyst with the Privy Council Office until 2006. From 2006 to 2010, Mr. Grant was director of the Middle East Division at Foreign Affairs and International Trade Canada. From 2010 to 2011, he was director general for international security policy with the Department of National Defence. Most recently, Mr. Grant served as chargé d’affaires at the Canadian embassy to Libya. He has BA in Administration from Concordia University, 1992. He is married and has two children.

Alexandre Lévêque becomes High Commissioner in the United Republic of Tanzania, with concurrent accreditation in the Republic of Seychelles, and becomes Ambassador to the Union of the Comoros.

Alexandre Lévêque joined the Department of Foreign Affairs and International Trade in 1998 to work as a foreign service officer. He worked with the Southeast Asia Bureau and, then, the United Nations and Commonwealth Affairs Division prior to his first foreign assignment, at the United Nations in New York. Mr. Lévêque also served abroad in Bangkok. In Ottawa, he worked in the Assignments Division, as deputy director in the Southeast Asia Division, as strategic adviser to the assistant deputy minister of bilateral relations, and as director of the Central America and Caribbean Division. Most recently, since 2010, he served as director of the Assignments Division. He has BSc in Political Science from Université de Montréal, 1996, and MSc in Political Science from 1998. He is married and has two children.

Gaston Barban becomes High Commissioner in South Africa, with concurrent accreditation in the Republic of Namibia.

Gaston Barban joined the public service in 1977 and was assigned to Rome as head of public affairs and culture in 1989. He was deputy director of the Communications Strategies and Planning Division, and then became director of Corporate Communications Division and in 1998 director of Communications Programs and Outreach Division. From 2001 to 2004, he was deputy high commissioner in Canberra, then chargé d’affaires until 2005. Mr. Barban returned to Ottawa in 2005 as deputy chief information officer and director. In 2008, he became chief information officer and director general of the Information Management and Technology Bureau. Mr. Barban has a BA Honours degree in History and Political Science from Carleton University. Mr. Barban succeeds Adèle Dion.

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Canadian Embassies in Africa Republic of Tunisia

Kingdom of Morocco

Libya

Algeria

Egypt

Republic of Mali Senegal

Burkina Faso Côte d’Ivoire Ghana

Sudan Nigeria Federal Democratic Republic of Ethiopia

Cameroon DR Congo

New Ambassadors

Republic of Kenya

Tanzania

Canadian Embassies Zimbabwe Nambia Botswana Mozambique

South Africa

New

African Ambassadors in Canada His Excellency Samuel ValisAkyianu, High Commissioner for the Republic of Ghana.

Her Excellency Tebelelo Mazile Seretse, High Commissioner for the Republic of Botswana.

THE RISING AFRICA MAGAZINE /// 5


‘Reducing Poverty

- Building Tomorrow’s Markets’ Excerpts from Minister of International Cooperation, the Honourable Julian Fantino’s keynote address to the Economic Club of Canada

I

November 23, 2012, Toronto, Ontario want to take this opportunity to talk to you about Canada’s international development objectives. And how we, collectively, including the private sector, can contribute to these objectives and benefit from it in a meaningful way. Today, the line between domestic and global is a moot point. We can no longer insulate ourselves from events happening around the world. What happens in other countries ultimately has a local impact, and not just on TV, or on the Internet, but in our communities and our homes. *** Growth rates are higher in many developing countries than in developed ones. Trade between developing economies is on the verge of surpassing their trade volumes with developed economies. Developing economies are investing in Canada’s economy more and more. At the same time, commodity prices are making basic food staples less affordable for many of the poorest people, regardless of where they live. We are operating in a new world of development. Forty years ago, Canada’s Development Assistance was a lifeline for the poorest people in developing countries-and it still is. However, today, the Government of Canada’s development program represents a much smaller share of resources flowing into developing countries. There is an economic imperative to our development work. The Importance of Economic Growth to Development You may be surprised to hear that the export and investment markets you covet, like Brazil, Thailand, Costa Rica and South Korea, were all development partners of

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CIDA, until recently. When we help other countries grow their economies, we connect Canadian businesses to some of the world’s fastest growing markets, which leads me to CIDA’s Economic Growth Strategy and the opportunities for Canadian businesses that work in foreign markets. The Government of Canada has tools that help business ventures abroad. CIDA takes an upstream approach to economic growth. We help to make countries and people, trade and investment ready. CIDA can help develop the capacity to negotiate with other countries, implement international commercial agreements with Canada and other trading partners, and help firms benefit from these agreements. We will be doing more of this in the future. However, CIDA’s primary work in this realm helps developing countries create the right conditions to make capital available for companies to invest in jobs, to connect businesses to markets, and to encourage investment, innovation, training and trade. Our Economic Growth Strategy focuses on three things: building economic foundations, investing in people, and growing businesses. First, CIDA supports governments in developing countries to build the necessary legislative and regulatory frameworks required to allow for private sector led growth in their economies. For example, one of our best achievements is improving regulatory capacity. The second part of our Economic Growth Strategy focuses on growing businesses. The developing world relies on small- and medium-sized enterprises for much of its economic growth. Too often, these small businesses come up with a great idea for

a product, only to watch it fizzle because they are without the necessary tools to turn their concepts into commercially viable success stories. This is why CIDA targets these businesses, helping to enhance their financial viability, productivity, and competitiveness. We also work to include women in our education and demanddriven training programs. They are often excluded from the formal economy in the developing world. This brings me to perhaps the most important, third, aspect of CIDA’s Economic Growth Strategy: Investing in people. Often, this is a matter of helping people gain better access to credit, insurance, training and financial services. As mentioned, this is especially critical for women, who often face legal, social and cultural barriers to economic opportunities. Partnerships As it stands, CIDA collaborates with a broad range of actors, including developing country governments, donor partners, nongovernmental organizations, multilateral institutions, and the private sector. And while we have a long history of working with the private sector as executing agencies, the fact is we need to engage more. The private sector is the driver of long-term economic growth globally. Without an increasing presence in the developing world, we will not achieve the development goals we are committed to at CIDA. As developing countries grow and open themselves up to more foreign investment, Canadian companies have an opportunity to share their expertise and business practices, in a mutually beneficial way. Canada’s mining and extractive sector is a prime example of how a government agency


like ours can partner with the private sector to advance global development objectives. This is a huge opportunity for both Canada and developing countries. Especially when you consider that almost one-third of the Toronto Stock Exchange Index is comprised of the natural resource sector. Canadian companies in the extractive sector account for almost half the mining activities in the world, and represent approximately 12 percent of Canada’s direct investment abroad. These companies boost economic growth and provide high-value jobs to thousands of workers in Canada and around the world. CIDA is working to help the Canadian mining, oil and gas sector to partner in development with local governments and NGOs for mutual benefit. The fact of the matter is that our firms are a key contributor to reducing poverty and helping people benefit from their own resource wealth. Let me give you a few examples of how CIDA is expanding the economic impact of local mining operations by establishing nearby community development projects. In Burkina Faso, we are working with Plan Canada and IAMGOLD to help youth receive training and job skills that meet labour market needs in various sectors, including mining, sales, tourism, carpentry and mechanics. In Ghana, a project with World University Service of Canada and Rio Tinto Alcan will improve education and access to clean water for more than 130,000 residents in 12 mining communities. I will take this opportunity to clarify a misconception about these projects that has been perpetuated by the media and some organizations here in Canada:... that CIDA is subsidizing mining companies. This simply isn’t true. CIDA does not subsidize Canadian companies. We do not subsidize NGOs for that matter. We are an outcomes driven agency. We use any and all legitimate vehicles, including the private sector, available to us to meet our stated

Minister Fantino talks with some of the children about life in the refugee camp. objectives. The fact is developing countries are using natural resources - more and more - as a key economic driver to create jobs and provide governments with revenue to deliver services. In 2008 alone, exports of oil and minerals from Africa, Asia, and Central and South America were worth about $1 trillion-nine times the value of international development assistance to these regions. Trends show that this will only increase. This is why it is important that extractive industries work in a way that benefits everyone involved. And this is why CIDA will continue to work with the sector. Last year at the Commonwealth meetings in Australia, Prime Minister Harper announced that CIDA is leading the creation of an international institute on the extractive sector and development to help developing nations harness their resources to generate sustainable economic growth and reduce poverty. We asked Canadian universities to submit proposals for how they would establish and operate the new institute. It is my pleasure to announce that the University of British Columbia, working with Simon Fraser University will be hosting the new Canadian International Institute for Extractive Industries and

Development. We look forward to working with them and the Canadian private sector on the implementation of this important work. This new institute will build on Canadian leadership in mining, oil and gas to increase the capacity of developing countries to manage natural resources in a way that is sustainable and fuels economic growth. Innovation Beyond the extractives sector, we will continue to find new ways to be more effective. Indications are that some development challenges may be better addressed by using these new approaches rather than more traditional methods, and that they are more likely to draw competitors who focus directly on results, accountability and innovation. This exemplifies what the private sector can bring to the table: Specialized expert solutions to development problems. Companies are also more likely to back high-risk solutions. They simply need access to the right tools to do so. My impression of international development so far is that it is a global process that strives to move people from poverty to prosperity. This process is not simple; it is complex. And, it is not easy; it is extremely difficult. But it can and is making a real difference. Canadian business leaders like you can and should work with CIDA to seek a more prosperous, secure world, while reflecting the Canadian values we cherish. This will not only help us meet our goal of eradicating poverty. It will also help build Canada’s market opportunities for the future. Thank you.

September 2012 visit to Burkina Faso, at the Village de Namassa

THE RISING AFRICA MAGAZINE /// 7


Canada

6 Largest Donor African Development Bank! th

at the

African Development Bank - Tunis Interview by Marje Aksli

Bruce Montador, Senior Fellow of Graduate School of Public and International Affairs, University of Ottawa

F

or a while Bruce Montador was our man in Tunis: from 2007 to 2011, he represented Canada at the African Development Bank

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as an Executive Director. Having travelled to 28 countries in Africa either for work or fun, he shared his thorough Africainsights with The Rising Africa. First of all, how does the development work of AfDB differ from the one of World Bank (and the planned development bank by the BRICs)? The AfDB has fewer resources than the World Bank has for the African region, so it needs to focus. It tries to limit its programming to a relatively few areas – infrastructure, private sector, governance and higher education. Infrastructure is critical, particularly for things like electricity, regional integration and water. The private sector is taking off – there are ever more references to Africa in the mainstream business press, but there are still many challenges facing both African and foreign entrepreneurs. It is hard to comment on the proposed BRICs development bank, since as far as I know it is not yet operational. There is a tendency to announce projects like that without them ever doing very much for a range of practical reasons.

How does Canada participate and finance the bank? Is the contribution from Canada growing or the opposite? Canada supports the Bank in two ways. As a shareholder, Canada’s capital pledges allow the Bank to borrow at good rates on the market, to on-lend to middle income countries and the private sector. As one of the few remaining AAA credits, Canada’s pledge is important to the Bank, particularly since Canada is already a big shareholder for our size (about 10 percent of the non-regional share). Moreover, during the financial crisis, there was a need to increase the Bank’s capital, and the temporary pledge of capital Canada made at the Pittsburgh G-20 meeting in 2009 allowed the Bank to continue to serve its members. The other way we, Canadians support the Bank is through the budgetary grants to the African Development Fund to allow for loans and grants to low-income countries and for regional public goods. We currently give 108.5 million dollars a year – it will be up for renegotiation next year for the cycle starting in 2014. We are the 6th largest


donor, and our contribution has grown with each replenishment. Canada is seen as an important partner – though for African Development Fund, the big players are really the Europeans – the UK, Germany and France. Canada also supports some multi-donor trust funds that do additional work – in areas like preparatory work for regional infrastructure projects and water, and for Aid for Trade. What can Canadian companies and NGOs do to benefit from the AfBD? Please share recommendations...

on Africa’s development; say from 2007 to 2011, on the example of one or two countries of your choice? Since my work in AfDB largely coincided with the financial crisis – I can say that Africa was doing quite well before the crisis, and was not directly touched by the financial crisis. The only country that was really integrated into the international financial system, South Africa, has a sound banking system. However, like Canada the continent was adversely affected by the economic downturn created by the financial crisis in the US and Europe.

AfDB estimates a larger African middle class than might be expected. Canadian consulting companies do quite well from AfDB contracts. Firms that are interested should be in touch with the Embassy in Tunis, which can help to keep them informed of opportunities. Companies with bigger investment interests should check with the Bank’s private sector department to see if there are possible synergies. Some NGOs may find consulting opportunities, and some of the thematic trust funds, like the Congo Basin Forest Fund, have approved projects from Canadian NGOs. AfDB does not do as much outreach to NGOs as at the World Bank, in part because NGOs have not typically paid a lot of attention to the AfDB. What are the trends affecting the AfBD and how does it affect Canadian companies and NGOs? The AfDB is bolstered by the growing Afro-optimism, and companies and NGOs will see growing opportunities. However, the tight fiscal environment in donor countries will probably limit growth of the concessional window, the AfDF, and thus limited growth in the Bank Group’s operations in least developed countries. There may be fewer Bank contracts available in traditional areas of health and basic education. Finally, there will probably be more competition from African firms in the markets for Bank procurement. Can you share your personal opinion

In addition, because of the nervousness of international lenders, who pulled back from marginal markets with which they were less familiar, a description which basically fit the whole of Africa. Fortunately, the relatively rapid recovery in Asia, and in commodity prices, as well as a return of Asian investors looking to secure supplies of commodities, helped Africa to get back on to a solid growth path relatively quickly. That is an overview, obviously situations vary. A country like Ghana, where governance and economic reforms were well underway, and where new oil production is adding to growth, is a very positive story. Tunisia, where political uncertainty has devastated the tourist sector, has actually not done badly in terms of sustaining exports despite the weakness in the euro-zone, its main market. The East African Community has been showing fairly solid growth, based on resources but also the gains from growing integration. Professor of economics at the London School of Economics and Political Science Alwyn Young has claimed in his research paper ‘The African growth miracle’ that Sub-Saharan living standards (as measured in ownership of durable goods, the quality of housing, the health and mortality of children, the education of youth and the allocation of female time in

the household) have been growing three and a half to four times the rate indicated in international data sets. Does it confirm your impression of African development? It is an interesting analysis, and not inconsistent with the AfDB’s estimates of a larger African middle class than might be expected. However, it is still important to recognize that many of those people emerging from poverty are still relatively vulnerable; the trend is positive, but there is a long way to go. This of course also means that there is lots of scope for further strong growth. In your view, is it justified to compare North African countries with SubSaharan countries – or should the stats and analysis be always separated, as two very different entities? From the political perspective of African countries and the African Union, it is all of Africa that is the frame of reference. Obviously there are cultural and economic differences between North Africa and SubSaharan Africa but I don’t know if looking at the Middle East and North Africa together is a better framework. There are lots of differences between the Maghreb and the Mashreq. We in CCAfrica often make countrybased overviews of development (so called Monthly African Indicators), but perhaps there are other units (cities, nationality, culture etc) which would tell a better story? With 54 countries the indicators become a sea of data, but the cities, cultures etc are open to interpretation. I would suggest looking at the five broad regions – NorthAfrica, East Africa, Southern Africa, Central Africa and West Africa. There are one or two countries whose allocation is controversial or in flux, but broadly this approach produces relatively homogeneous (or less heterogeneous!) subsets. One story to tell in this context would be the relative success of regional integration in the different areas – best in East Africa and weakest, so far, in North Africa.

THE RISING AFRICA MAGAZINE /// 9


A WARM Handshake With Prime Minister Harper in Senegal

A PROUD MEMBER OF CCAFRICA

Photos courtesy of the Office of the Prime Minister

Mr. Pierre Boivin, board member of CCAfrica and partner and co-leader of the Africa Initiative at the McCarthy Tétrault law firm, recently participated in a round table in Dakar with Prime Minister Harper during his Africa trip at the beginning of October. As a new board member of the Canadian Council on Africa, he shared his experience of this high-level encounter with The Rising Africa.

T

o begin, we asked Mr. Boivin what prompted his participation in the round table with the Prime Minister.

Interview by Marje Aksli Mr. Harper visited Senegal on his way to the Francophonie Summit in the Democratic Republic of Congo, notably to announce Canadian government aid as well as the enhancement of trade relations with Senegal. Of particular importance,

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was the announcement of the conclusion of negotiations which will lead to the execution of a “Foreign Investment Promotion and Protection Agreement”, between both countries, Egypt being currently the only African country with such a treaty in place with Canada. In preparation for his meeting with the President of Senegal, Mr. Macky Sall, Mr. Harper held a meeting organised with a small group of senior business executives representing seven organisations. I attended

as a representative of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), being co-leader of the Africa section of their International Committee. How would you describe the meeting with the Prime Minister and which companies were present? The Prime Minister is known to enjoy meeting with the private sector and this was evident at our meeting which was very cordial and was very appreciated by the participants. Since he requested to


meet with a small team of executives, this its credentials. Mr. Lucien Bradet, the advice in a wide variety of practice areas allowed for dynamic discussions and the Executive Director, Mr. Michel Côté, the and industries. Prime Minister was very receptive and previous Chairman of the Board and the We have been involved in various areas asked several questions. directors and staff have laid out an excellent of expertise across the African continent In addition to CIM, which I represented, foundation over the course of the last notably in Business Law, Litigation and there were three mining companies which decade. Project Finance, as well as in key industries have projects in Senegal: such as mining, oil and gas, IAMGOLD, Teranga Gold Canada has what Africa needs now: I would even energy, infrastructure and and Oromin Joint Venture use the hand and glove metaphor to describe telecommunications. Let Group. The other companies me provide you with a few Canada and Africa relations. present were Fujitsu Canada, examples. In mining, we Desjardins and AECOM Canada which It’s also an exciting time to join CCAfrica act for a wide range of clients such as Toro provided a broad business perspective. because of the added interest brought about Gold in Senegal; Xstrata for the Kabanga I also had the opportunity to offer by Africa’s amazing economic development Nickel Project in Tanzania; for Atlatsa and CCAfrica‘s collaboration should the Prime potential. CCAfrica is also privileged for Giyani Gold in South Africa; for First Minister or any of his collaborators wish to to have Mr. Benoit La Salle join as new Quantum in Zambia and Botswana and for obtain additional information and insight Chairman of the Board since he has a Frosys and Kombat in Namibia. In oil & gas, from an organisation representing a wide highly successful track record notably as we are currently representing Westbridge spectrum of Canadian companies that are a dynamic business leader for Semafo in Energy in Namibia and have recently West Africa. advised Heritage Oil in Nigeria. We also involved in Africa. act for ENRC Mozambique Limitada in In your opinion, are there opportunities Could you tell us about CIM’s connection notably with the negotiation for Canadian businesses in Africa? involvement in Africa? of a concession with the Mozambiquan As the world’s second most populated CIM is an organisation consisting of Government relating to the construction continent with over one billion almost 15,000 members in the mining of a railway and the development of port inhabitants and blessed with abundant industry which has existed for over facilities. In the financial services sector, we natural resources, Africa is positioned 114 years. It is a well-established and have assisted the World Bank in the OHADA for impressive economic growth and the respected organisation both nationally and region and we have also been involved in opportunities are endless. internationally. Canada has made important investments the telecommunications industry where Initiated by the government of Canada’s we acted for the governments of Morocco, Corporate Social Responsibility strategy for in Africa over the years and Canadians Burkina Faso, Algeria, Mozambique and the extractive sector with CIM leading the are viewed positively in Africa. We speak Mali. CSR Centre for Excellence, CIM has been English and French which are the two We have also assisted clients in various active in Africa on several fronts especially predominant languages, we do not have litigation matters such as tax disputes in the last 18 months. Many projects are a colonial past, and privileged areas of with host states arising from activities in underway such as the development of development such as natural resources, the natural resources sector or, recently, CIM branches in Dakar and other cities energy and infrastructure development, to successfully defending a class action claim in West Africa. At a later stage, CIM is name a few, are areas in which we excel. for Anvil Mining regarding a matter looking into a project to foster the creation In my view, Canadians are most welcome originating in the Democratic Republic of of a broader African mining organisation. in Africa and do provide an attractive Congo. In that matter, the permission to CIM also recently organized a first Gold alternative to other foreign investors. appeal to the Supreme Court of Canada was symposium in Dakar in collaboration with Could you tell us about McCarthy denied on November 1st, 2012 in favour of the Canadian Embassy in Senegal and has Tétrault’s involvement in Africa? our client. been involved in several trade missions and For many years now, McCarthy Tétrault Our firm has endorsed an Africa Initiative forums in West Africa. has been actively involved internationally, which I have the pleasure of co-leading You are a relatively new board member including in Africa, serving its clients on of CCAfrica. Please tell us about your a wide variety of mandates. Our firm has with my partner David McLeod Smith from our London office. This speaks to the initial impression. obtained numerous independent national importance of doing business in Africa for Joining the board at this point of time is and international accolades, notably by our firm. a privilege as CCAfrica has just celebrated Chambers International and can provide its 10th anniversary and has established high quality legal services and business Thank you.

THE RISING AFRICA MAGAZINE /// 11


Benoit La Salle The New Chair of the Board of Directors for The Canadian Council on Africa

The Canadian Council on Africa (CCAfrica) is pleased to announce the appointment of Mr. Benoit La Salle, FCPA, FCA, MBA as the new Chairman of the Board of Directors of the Canadian Council on Africa. Mr. La Salle is the founder and Executive Vice President of the Board of SEMAFO, Chairman of SEMAFO Foundation, President and CEO of SEMAFO Energy. Mr. La Salle was also Chairman of the Board of Directors of Plan International (Canada), one of the leading NGOs in Canada and has served for over 18 years. The Rising Africa met with him to discuss his new mandate as President of the Board and his experience in Africa. Interview by Leonie Perron

H

ow did you discover the Canadian Council on Africa and what led you to take the role as the new Chairman of the Board?

I have known CCAfrica for several years now, mainly for its pioneering role in the Canada-Africa relations. CCAfrica, like me, had an avant-garde vision of Africa, which I always liked. However, at the time, SEMAFO was already well established in Africa since the company has been

Gnogondèmè Women’s group : working for the Shea Project, Yona -Burkina Faso Photos courtesy of Martine Brideau, Semafo Foundation

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around for 17 years. A few years ago, the natural resources sector did not have the same appeal it has today and SEMAFO had to position itself and establish alone his reputation as a company of reference over time. Now, the situation in Africa has changed and the natural resources sector needs an organization such as CCAfrica, which is an essential platform when it comes to doing business with Africa. While I reduced my operational responsibilities within SEMAFO in order to focus myself more significantly on the Canada-Africa relations, the position of Chairman of the Board of CCAfrica was offered me which I accepted with great pleasure, because it was in line with my personal vision regarding the relations between Africa and Canada. Having served on several boards of organizations having outstanding success, such as Plan International and the SEMAFO Foundation, which concepts previously learned would you like to bring to the Canadian Council on Africa?


Humbly, I would like to make corporate social responsibility a predominant theme in all initiatives taken by CCAfrica, because human values and concerns of sustainable development are the foundations of a successful relationship between Canada and the different African countries. PLAN and SEMAFO Foundation are examples of sustainable development that helped build strong relationships that will stand the test of time. I think CCAfrica has the responsibility to educate its members on the various issues of corporate social responsibility. The companies in mining, infrastructure or any other field, all have a role to play in the sustainable development of the country where they are present. I’ll make sure CCAfrica becomes a vehicle for the promotion of CSR, whether through its activities, its various publications (Rise in Africa, studies) or when in mission in Africa. In this way, CCAfrica will become an essential platform, not only for Canadian companies, but also for the various African countries which CCAfrica does business with. What is your plan of action for your term as Chairman of CCAfrica? Where do you see CCAfrica in ten years? First, I would like that, in Canada, CCAfrica greatly increases the number of its members to have a national coverage. CCAfrica must become, for all Canadian companies wishing to work in Africa, the ultimate reference to guide them, to exchange with them and to protect them from hidden risks that sometimes arise when doing business in Africa. On the other hand, for the African countries, I would

Gnogondèmè Women’s group : working for the Shea Project, Yona -Burkina Faso Photos courtecy of Martine Brideau, Semafo Foundation

like that CCAfrica becomes a gateway to Canada. To do so, CCAfrica must be known by African governments to ultimately become the first stop of African business people visiting Canada in order to meet their Canadian counterparts, which should be the majority of CCAfrica members. I see, in ten years, that CCAfrica might be able to play the role of socio-economic platform between African countries and Canada. During economic mission to Africa, CCAfrica representatives should advise the African government agencies they meet about the financial, legal, fiscal and logical needs of Canadian companies to do business in Africa. Investors seek stability and fairness when dealing abroad. Companies will naturally form local staff

Children in Niger Photos courtesy of Martine Brideau, Semafo Foundation

in order to evolve in the organization. CCAfrica should make recommendations institution to institution, as a third party neutral. This would facilitate economic exchanges for Canadians interested in doing business with Africa. Personally, why do you think Canadian companies and institutions should become a CCAfrica member? The African continent has become, in recent years, the continent most coveted by global economic powers. Developed economies are currently experiencing an economic downturn, prompting major developers to seek alternative markets. Africa is the continent that has and will continue to offer the largest markets for infrastructure projects, allowing at the same time, the development of their primary and tertiary economy. Thus, Canada, its institutions and companies must and will have to be structured in order to remain competitive with countries already ubiquitous on the continent such as France, but also China and USA. CCAfrica provides an ideal platform for structuring the African approach to increase the firepower of Canadian companies and institutions and their chance of success. Having had successful business yourself in Africa, what would you recommend to companies wishing to do business in Africa, but still hesitate? I would first recommend to become a member of the Canadian Council on Africa so that they can get to know the continent, its culture and its people. I would suggest these companies to participate in CCAfrica

THE RISING AFRICA MAGAZINE /// 13


ca events to establish contacts and to avoid making novice mistakes. It is important for these companies to participate in trade missions to see the possibilities and opportunities that exist in that specific country. SEMAFO has a very good reputation on the African continent, how do you explain this phenomenon? SEMAFO success is directly related to social integration. SEMAFO is a Canadian company that is perceived in Africa as a human society, with real, just, economic and social values. Since the beginning of its existence, SEMAFO has an economic mission and a humanitarian mission. The first mission that we set ourselves at the beginning of is to establish enduring relationships with the countries in which we operate and through our experience, expertise and financial acumen, partner to responsibly develop natural resources. Our humanitarian mission, as well as it is to make sustainable contributions to improve the quality of life and livelihoods of the communities in which we operate through social, health, education and environmental policies and programs. From this mission, we have created the SEMAFO Foundation who endorses this mission fundamentally. For me, corporate social responsibility is not a task or a department, but an intrinsic value of our management and our decisionmaking mechanism.

Paprika fields in Burkina Faso Photos courtesy of Martine Brideau, Semafo Foundation

SEMAFO has important projects of corporate social responsibility (CSR) in West Africa. [12:19:49 PM] Marje: What would be your recommendations for other companies working in Africa, who wish to also implement CSR projects? First, corporate social responsibility should be part of the strategic plan of any company wishing to operate in a developing country. CSR programs must come from the base of the society from surrounding populations and not imposed by a team who did not consult the local population. A company does not dictate its CSR programs, but executes the conclusion of discussions with people, local and national institutions. For successful CSR programs, they must bring people together,

School lunch program in Burkina Faso Photos courtesy of Martine Brideau, Semafo Foundation

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including national officers, employees and civil society. SEMAFO, over time, through the activities of SEMAFO Foundation has become the benchmark for corporate social responsibility. CSR cannot be measured with economic indicators, but rather a statement of fact. When you see an increase of life quality, education levels, access to medicine and the creation of sustainable jobs, you know, at this time, that your CSR program meets the needs of local populations. What do you think is the role of the private sector in international development? The private sector must be omnipresent in international development, as it is the only one who can provide technical and vocational training applied to a specific sector or industry. However, it must be accompanied by the public sector, African and Canadian, to support of these institutions. In the same issue of The Rising Africa, Joe Ingram encourages Canadian companies to implement supply chain outside of their investments. SEMAFO adopted this practice. Was it difficult for the company to do this? And what is the advantage of this? Once the company has reached a critical size, the implementation of a supply chain is essential, because in Africa, it is very difficult to rely on local suppliers when an operation requires a ‘Just in time ‘method. The supply is the key to your success and should be managed internally and cannot be left to the variations of the market. At SEMAFO, with mining operations in three countries, factories turning round the clock, seven days a week and where parts delivery time is up to six months, the supply chain becomes either your Achilles heel or your success.


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4 P’s of Africa “In Africa,

Polite, Patient, Persistent and Passionate!” be

T

Article by Marje Aksli his was the message Mr. Field Marsham shared in the recent Canada-Africa Symposium ‘Looking Forward’. His advice to the room full of Canadian executives and policy makers on October 16, 2012 from his 20 years of experience in Africa was to catch the opportunity the rising Africa is offering. “I would strongly urge Canadian businesses and investors to broaden their perspectives and examine the tremendous opportunity and potential in Africa, a continent that is often - and unwisely overlooked. They would do well to be part of a success story that is only beginning to be told.” Charles Field-Marsham grew up in Toronto, received a BA from McGill, worked at Credit Suisse investment banking, then moved to Africa in 1993 and married a beautiful Kenyan lady in 1994. In Kenya, he founded or acquired three companies (see the text box on the next page). Drawing from the experience of running and managing these enterprises, his message concentrated around Africa’s improving economic backdrop and increasing

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investment. For example, inflation is down from the 22 percent in 1990’ss to 8 percent in 2000s, the government debt as a percentage from the GDP is down from 81 percent in the 1990’s to 59 percent in early 2000’s. While the budgets run on average 4,6 percent deficits from GDP, in 2000’s the deficitis only 1.8 percent. He cited a survey conducted by the Abu Dhabi Investment Company and the Economic Intelligence Unit about institutional investor intentions towards Africa. “Their key findings were the following: Africa is seen as having the greatest investment potential amongst all frontier markets; investors plan to at least double their asset allocation in African markets over the next five years, and the main catalyst for investment is the emerging middle class (more so than natural resources), and finally, investors are becoming more comfortable with political and economic risks,” he told the audience in the Chateau Laurier. The question is - is Canada missing out? While a large number of foreign investors are participating in the growth of Africa,

Canadians seem to be hesitant about this market. For example, approximately 3.8 per cent of total China FDI flows to Africa, while only half per cent of total Canadian FDI flows to Africa. Sub-Saharan real GDP growth rates outpace the developed world and emerging market average in 2012 and 2013. The profitability of foreign companies in Africa has been consistently higher than in most other regions in the world. Since 2004, Africa has had the highest growth rate of private foreign direct investment (FDI) into emerging markets. The rate of return on FDI in Africa has averaged 29% since 1990.

Source: Maplecroft’s Political Risk (Dynamic) Index


Africa has had the highest growth rate of private foreign direct investment (FDI) into emerging markets. The rate of return on FDI in Africa has averaged 29% since 1990. Another example: Kestrel Capital has 4000 clients across 20 different countries. Of these 20 percent are based in the UK and Eurozone region and 15 percent in the U.S. Despite the broad interest in Kenya’s investment opportunities, Kestrel Capital has no clients from Canada. In his words, the reason for the tepid interest in Canada towards Africa is the outdated perception. Africa is the misunderstood continent. “For example, when I was considering whether to invest in Sierra Leone, I made the mistake of watching the movie Blood Diamonds. I got nervous – me who has been living in Africa for ten years, knowing the

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consistent difference between perception and reality. It is not a surprise that people living in North America have perceptions of Africa based on news coverage and Hollywood movies, and not the reality of what is happening on the ground. Thus I visited Sierra Leona and the reality in Sierra Leone is peaceful and stable.” The perception is that Africa is very corrupt. The reality is that Africa as a whole ranks better in Corruption Perception Index than Mongolia, Iran or Russia. “We have made a zero tolerance policy towards corruption, and I can assure that it is possible to run businesses without giving out bribes. Do not seek special privilege in Africa, ever.” In addition to the recommendations about being patient and polite in Africa, Mr. Field Marsham told the Canada- Africa

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symposium ‘Looking Forward’ that despite the perception that with today’s technology it is possible to manage a large firm from abroad, management teams must have experience in Africa. Senior management must be “hands-on” and that domestic or Asian / Latin American strategies often don’t apply. Being practical often leads to avoidance of unforeseen issues. And while the perception is to have a strong and well-connected local partner to succeed, he advises it isn’t necessary. Instead he recommends Canadians to hire the best local lawyers, accountants, and bankers, to work with Canadian embassies and to partner with the local community by making meaningful investments in Corporate Social Responsibility programs.

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•Sub-Saharan real GDP growth rates to outpace developed world and emerging market average in 2012 and 2013 •The profitability of foreign companies in Africa has been consistently higher than in most other regions in the world •Since 2004, Africa has had the highest growth rate of private foreign direct investment (FDI) into emerging markets •The rate of return on FDI in Africa has averaged 29% since 1990 THE RISING AFRICA MAGAZINE /// 17


Africa Is Not

a Monolithic Entity

T

he President and CEO of the Canadian Commercial Corporation (CCC), Mr. Marc Whittingham shared his views on African development with “The Rising Africa”. Was there a lost decade in Canada-Africa relationship? Our editor Marje Aksli asked the questions. The mandate of CCC is “to assist in the development of trade between Canada and other nations.” How big share of your clients are currently from Africa nations? Right now, African clients make up a

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relatively small share of our total business, but that small share is actually quite significant when we look at the types of projects that we are working on in Africa with Canadian companies – these are complex infrastructure projects and projects that support democratic transparency and good governance. We are seeing a lot of potential in Africa; rapid urbanization in many countries on the continent is putting tremendous pressure on infrastructure. We are taking a very active role in engaging with clients from Africa to show them the solutions that Canadian companies can offer for their water, transportation, energy infrastructure investments, domestic governance and security needs. Do you work with companies directly, or through their country governments only? CCC has the authority to sign international contracts on behalf of the Crown for purchases destined for a foreign government. This provides foreign government buyers with the option of a government-to-government arrangement that can reduce the time, cost and risk of

international tendering. It also offers a very practical mechanism for bilateral cooperation in key areas such as defence and infrastructure development. How do you choose the countries CCC works in? First of all, we never treat Africa as one entity; we look at each country individually. I was fascinated by the address by the dean of African diplomatic corps in Ottawa, Mrs. Florence Zano Chideya at the CanadaAfrica Symposium when she said: “We are many different countries. Africa is not a monolithic continent.” And this is what companies in Canada need to understand, as well. The countries in Africa have individual resources, individual rules of law and individual talents and human capital. What recommendations do you have for Canadian companies doing business in Africa? Certainly there needs to be an increased awareness that there are opportunities, as the reality of Africa starts to be discussed in the media, and Canadian Council on Africa is doing an excellent job in that regards. Another important aspect to


mention is that Canadian businesses look for opportunities where they believe there is a stable rule of law. I think you see this recognition in Africa that democracy and rule of law leads to economic development, which leads to social development. Almost in that order. I would advise the companies to know the country they are working in; to talk to Export Development Canada (EDC) about financing; to talk to Canadian trade commissioners, and to look at CCC if there is a possibility of a governmentto-government transaction. And certainly I would recommend that every company looking to work in Africa to join CCAfrica. There are lots of opportunities in different countries of Africa that could benefit from Canadian expertise in various sectors. Was there a lost decade in CanadaAfrica relations? Historically, Canada was doing more in developmental assistance programs and a lot of social development programs. I don’t think we had a lost decade from the business perspective, I think we were never really there from a business perspective. And maybe Africa was not ready for us and maybe we were not ready for Africa. Another reality in Canada is that for many years, most of Canada’s business was done with Canadians and with Americans. Today, our trade is shifting from almost all trade going to the U.S. two decades ago to include other markets: Latin-America, definitely Asia, and now increasingly Africa. I think it is wonderful that Canadian International Trade Minister Ed Fast is leading trade missions to some African countries. CCC currently has an active project in Ghana in the energy field. Why and how was this project selected? First of all, Ghana is a country where democracy and the rule of law are prevailing. As the late President Mills mentioned many times, the rule of law is necessary as it attracts investments. In terms of our project there, the Ministry of Energy needed to increase the energy capacity of the country significantly as a part of a long-term strategy to support the power demands of the growing middle class in Ghana. This meant more power plants throughout the country in a relatively short period of time. CCC first got involved in the Ghana power project when we were contacted by our trade partners at the High Commission of Canada in Ghana to assist a Canadian company, Orenda Aerospace Corporation, and its partners in negotiating

with the Government of Ghana. Both parties recognized the key facilitation role that CCC could play in the transaction for a 132-Megawatt power generation plant. Do you see room or availability in your capacity for other companies to follow a similar route? The opportunities for companies to follow a similar route are countless. African leaders have told me that compared to companies from other countries the Canadian businesses have the advantage of coming with quality products, with a long term perspective and high degree of Corporate Social Responsibility (CSR). Our respect for CSR also means that environmental concerns are paramount in anything we do, but also community engagement, local employment, knowledge and technology transfer to locals. I spoke earlier about rapid urbanization in many African countries and increased demands on infrastructure; we see that most of these demands are for reliable energy and adequate housing. Our goal is to come up with the best possible Canadian solution to meet countries’ needs. How do you do that? The model we put forward is attractive to governments as it presents the Government of Canada as a partner in the country for what can be a very complex process. It is a collaborative approach that includes CCC, Canadian companies, and often the Trade Commissioner Service and Export Development Canada, working with governments to assure them of a credible and ethical process. We started doing public-private partnerships (PPP) in the

late 80’s. During the long learning process we realised that the key to a PPP is to make sure that the risk is shared in a right way: public sector should not take private sector’s risks and vice versa. It means that both should take the risk where they are able to manage it properly. Once you do that then you are able to establish a good project that will be efficient for the communities. You need a very strong public sector that is able to negotiate a good risk sharing model with the private sector. How strong is the public sector in African countries? African public sectors are of varying strengths. If they do not have enough capacity, you need to back them up. This is where government-to-government contracting can be of help. As a Canadian government entity in contracting, we can provide the capacity and will make sure that the risks are shared in a way that makes sense for everyone. CCC guarantees for both parties that there will be full transparency and it will be in accordance with our Code of Business Ethics. All our employees sign it every year, and the Canadian companies we work with have to comply with it as well. What could be the positive lessons learned that other companies / governments can benefit from? Canadian companies have experienced enhanced access to opportunities by having the power of the Government of Canada at their side in business transactions. Foreign governments have now seen the value that CCC adds by filling the needs of governments to establish robust procurement practices, including

The gas turbine packages and switchyard, Takoradi project in Ghana.

THE RISING AFRICA MAGAZINE /// 19


due diligence practices to ensure fair, reasonable and ethical contracts in meeting the, often urgent, development needs of the countries. One such example is the recent delivery of state-of-the-art biometric voter registration kits to Kenya in support the country’s upcoming national election. The Government of Kenya identified a critical need for this equipment in order to prevent the delay of the elections, and CCC was able to rapidly mobilize and provide a turnkey solution, including financing, to deliver a product to permit the democratic process to unfold as it should. Much has been talked about the CSR and the lack of internationally agreed standards on what should CSR universally hold. What can you say about the CSR projects in the two sites in Africa, in Kenya and Ghana, in terms of their respect for local communities and civil society, environment, economy and governance? CCC represents both the Government of Canada and Canadian companies in our transactions and CSR and good corporate citizenship are at the forefront of every decision that is made to enter into

a contract. This means that we carefully consider all the implications of our business activities not only at home but also abroad. In keeping with the Government of Canada’s stance to encourage and expect all Canadian companies to meet high standards of CSR, we have developed our own guiding CSR principles outlined in our Code of Conduct, and the Code of Business Ethics, which I mentioned already. One element of CSR that we are committed to is capacity building in the host country, which means that with our projects such as that in Ghana, much of the workforce is actually hired locally, leading to knowledge transfer to the local workforce. In Ghana, we had 94% local employment on the project, meaning that the jobs and skills are kept in country. How active is the African diplomatic corps in taking advantage of your opportunities? One of the many advantages of being headquartered in Ottawa is that we have access to the foreign diplomatic missions in Canada. One of the Corporation’s main strategies is to engage with the heads of missions from abroad to not only introduce

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CCC and our services, but to really educate officials with the government-togovernment approach to business and the real benefits that Canada brings to projects, especially to complex infrastructure projects. Do you think CCC will have a role in the increased trade between Africa and Canada as envisioned by the Minister Fast (his announcement on Oct 16) and the planned CSR hub in Western Africa? Absolutely. I think CCC will continue to play a very unique role in the increased trade between Canada and countries in Africa. As Minister Fast noted at the Canada-Africa Symposium, Africa is one of the fastest-growing economic regions in the world, which not only means many new opportunities, but also increased competition from around the world. I think CCC, with the Government of Canada and Canadian companies, will be able to contribute greatly to the CSR initiatives that are taking place in Africa, and I believe that supporting ethical business practices is one of the cornerstones of a Canadian approach to trade.

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Tanzania Visits Canada:

T

Raising the Bar for Doing Business in Tanzania

Article by Dawit Hailu & Marje Aksli he Canadian Council on Africa in Tanzania. The President affirmed his was pleased to be involved in commitment to economic development of the organization of Tanzania`s Tanzania stating that “Our government is president Jakaya Kikwete’s visit focused on creating jobs, growth and longto Ottawa on October 4, 2012, making it term prosperity, and on creating the right possible for CCAfrica’s member companies conditions for Canadian businesses. This and organisations to enquire about business agreement will encourage investment and opportunities in Tanzania. CCAfrica was better protect Canadians” to do business in also pleased to facilitate a Presidential Tanzania. meeting with Ian Bennett, President and The President’s visit does not only CEO of Royal Canadian Mint, Peter Kieran, promote the economic relations between President and CEO of CPCS, Shaun Usmar, Canada and Tanzania but also implores CEO of Xstrata Nickel, Jean-Piette Sauriol, that accountability and responsibility in President of Dessau, Patricia Malikail, women and children’s health issues in Chief Representative from EDC, and Marc Africa be taken seriously. Both the Prime Whittingham, President and CEO of CCC. Minister and the President co-chaired Mr. Kikwete’s visit to Canada has been the UN Commission on Information viewed as strengthening the economic and Accountability for Women and relations of both countries for more than Children’s Health in 2011 signaling their two decades. Since 1990’s, Canada remains commitment for socio-economic wellbeing the single largest investor in Tanzania of communities across the African and the official visit of the President continent. As an extension of this, both signals further Foreign Investment and leaders announced six new initiatives that trade opportunities between Canada and are intended to help women and children’s Tanzania. President Kikwete told Prime access to health care, promote greater Minister Stephen Harper “I would like to accountability in government and in the encourage more investment from Canada management of the resource and extractive because there are vast opportunities in the industries. mining area (and other sectors),” Going forward, the visit of President The President during his visit signed Kikwete is a critical one for both countries a bilateral Investment Promotion and which aims to capitalize on their strong Protection Agreement with Canada, economic and political relations. CCAfrica which provides greater protection against is very pleased to witness such a positive discriminatory and arbitrary practices and long-term connection unfold. for Canadian companies doing business

CCAfrica Welcomed the Round Table Discussion with the President of Tanzania and the Public and Private Sector

Top Row (Left to Right): Andrew McAlister, Consultant; Jean-Pierre Sauriol, President of Dessau; Peter Kieran, President and CEO of CPCS; Marc Whittingham, President and CEO of the Canadian Commercial Corporation (CCC); Patricia Bentolila, Chief Representative, Africa, International Business Development for Export Development Canada (EDC); Robert Orr, Former High Commissioner to the republic of Mozambique; Ian Bennett, President and CEO of the Royal Canadian Mint; Patricia Malikail, Director General – Africa, for Foreign Affairs and International Trade Canada (DFAIT) Bottom Row (Left to Right): Alex Massinda, High Commissioner for the United Republic of Tanzania; Hon Sospeter Muhongo, Minister for Minerals and Energy ; His Excellency Jakaya Mrisho Kikwete, President of the United Republic of Tanzania; Lucien Bradet, President and CEO of the Canadian Council on Africa; Shaun Usmar, Chief Financial Officer for Xstrata Nickel

THE RISING AFRICA MAGAZINE /// 21


7

Questions to the Canadian CSR Counsellor

D

r. Marketa Evans is the first Extractive Sector CSR Counsellor. But what work exactly does the Office of the Extractive Sector CSR Counsellor do? Created in 2009, the Office of the Extractive Sector CSR Counsellor has two main roles: an advisory role and a dispute resolution function. The Office of the CSR Counsellor was created as one of the four pillars of the Government of Canada’s CSR Strategy for the Canadian International Extractive Sector, called “Building the Canadian Advantage”. Its first role focuses on sharing public information for the benefit of all stakeholders on issues related to the implementation of the voluntary standards that form part of the Strategy. The second, the dispute resolution mechanism is called the Review Process, and it provides an opportunity for dialogue and joint problem solving between a Canadian extractive company and project-affected people. Canada is indeed the first country to establish a dedicated office to constructively resolve disputes in the extractive sector through dialogue, by providing a public, no-cost service, sponsored by a home country government. What is the Government of Canada’s CSR Strategy for the Canadian

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International Extractive Sector? The CSR Strategy, announced in March 2009, seeks to improve the competitive advantage and reputation of Canada’s extractive sector companies operating overseas by enhancing their ability to manage social and environmental risks. As I briefly mentioned earlier, the CSR Strategy is based on four integrated and complementary elements. First of all, it supports the host-country capacitybuilding initiatives related to resource governance. Secondly, it promotes widely recognized international Corporate Social Responsibility performance guidelines. Although they are not legally binding, the Strategy promotes their endorsement by Canadian extractive sector companies. The four endorsed voluntary standards are: the International Finance Corporation performance standards on social and environmental sustainability; the Voluntary Principles on Security and Human Rights; the Global Reporting Initiative; and the OECD Guidelines for Multinational Enterprises. The Strategy also supports the development of a CSR Centre for Excellence in order to develop and disseminate high-quality CSR tools and training to stakeholders. The Centre of Excellence is hosted by the Canadian Institute of Mining, Metallurgy and Petroleum. Their focus is to help Canadian companies doing business around the world, by providing tools and information for all stakeholders, and to raise the bar for excellent CSR-related practices in the extractive industry. Currently, they have country profiles for two African countries: DRC and Tanzania. And finally, the Strategy included the creation of an Extractive Sector CSR Counsellor Office, which I head currently. What is the advisory role of the CSR Counsellor? As I mentioned earlier, one of the roles of our Office is to advise stakeholders on the implementation of the voluntary performance standards endorsed in the Strategy. We define “stakeholders” broadly:

all efforts we undertake are in the public interest. We do not offer consulting services to individual companies, but rather information for the benefit of the public on issues connected with the implementation of the CSR standards. In our advisory work, we also focus on the conflict reduction and prevention. What should we know about the Review Process? The Office of the CSR Counsellor provides a new option for constructive resolution of disputes between Canadian companies and communities outside of Canada. We play a convening and facilitation role. Our problem-solving tool, called the Review Process, emphasizes dialogue and constructive problem-solving. It is about people with different views and interests working together to find mutually acceptable solutions to resolve disputes or issues. Disputes must be connected with the voluntary standards in the Government of Canada’s CSR Strategy. In creating the Review Process, we consulted dozens of civil society groups in Mali, Senegal and elsewhere to hear their views. Who can bring a request to the Office of the CSR Counsellor? Requests may be brought by a Canadian mining, oil, or gas company (registered or head-quartered in Canada); or, by a projectaffected individual, group, or community outside of Canada (assistance of a third party is possible, but optional). The Office also invites joint requests from companies and project-affected people. How does the Review Process work? We aim to have a process that is timely and practical. Once we receive the request, we confirm it is complete. If so, the other party is informed right away. If the request


meets basic intake criteria, we proceed to meet with each of the parties, by phone or in person, to let them know how the process works, what they can expect, and to begin to build understanding of the issues. We normally conduct a situational assessment in the field. The purpose of this assessment is not to find fault, but rather to help everyone involved b e t t e r understand

the context, the issues, and whether this problem-solving approach is appropriate and will likely be helpful in resolving the issues. Some other tools our office may use are: information-sharing, convening, facilitation, process design and joint factfinding. There is wide scope in the Review Process for creativity and discussion. The Office received its first request for review five months after the launch of the process. As of December 2012, the Office had received three requests for resolving disputes. The Review Process is just one way for people to try and resolve their disputes. Participating does not prevent parties from

pursuing other options. What can this type of approach do? Dialogue based dispute resolution can find workable and lasting solutions that allow parties to maintain control and input in a process, and help improve trust and working relationships. This approach can help build trust based on scientific information – beyond “duelling experts”, and generate a better understanding of the situation and get to the root cause of conflicts or issues. It can also help people figure out how to implement a performance standard in a way that best meets stakeholders’ interests. Thank you very much! For more information, please contact The Office of the Extractive Sector CSR Counsellor by email: csr-counsellor@ international.gc.ca or visit www. international.gc.ca/csr_counsellorconseiller_rse .

Discovering

Opportunities in Her Excellency Mrs Edda Mukabagwiza High-Commissioner of Rwanda in Canada

O

n November 28th, 2012 following the “Lunch-discovery: discover the business opportunities in Rwanda”, organized in partnership with the MRI-FCE, which brought together a dozen of Montreal business people, The Africa Rising met with Her Excellency Mrs Edda Mukabagwiza, High-Commissioner of Rwanda in Canada

By Yacine Sawadogo What are the tools available to companies or possible entrepreneurs offered by the Rwandan diplomatic mission here in Canada? The first tool is before anything the HighCommission as a physical place. Our role is more commercial than political; acting as an intermediary. Missions can be organized towards Rwanda or towards Canada according to the needs. There is also a

Rwanda decentralized presence of honorary consuls to represent Rwandan interests throughout Canada. We have three honorary consuls: Montreal, Toronto and Edmonton. Another very important tool is the Rwanda Development Board which has a representative in Canada which is based in Montreal. You listed sectors favorable to Rwanda. According to you which ones can easily attract the Canadian investors in terms of direct transfer of expertise and / or partnership? The infrastructure sector is a priority; including its various components (aviation, construction etc.). The energy (hydroelectric mainly) and the tourism are also interesting sectors. Concerning the latter, we organized a show on tourism of the

countries of the East African Community which attracted more than 400 people. We also have to mention that Canada played an important role in the education sector (construction of the national University of Rwanda in 1963) since the beginning of our relations. Do you offer services that the potential investors might ignore? I would like to mention that we are always available to give information on Rwanda (country overview, visas etc.). We can help potential investors from the identification of the opportunities to their establishment in the country. We also have a web site which gives a lot of information. http://rwandahighcommission.ca/en/

THE RISING AFRICA MAGAZINE /// 23


THE

POWER OF ALLIANCES Partnerships between businesses and development agencies can lead to improved returns on Corporate Social Responsibility spending for both businesses and communities, without requiring increased spending.

Article by Carlo Dade & Savera Hayat

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y combining the different resources and competencies of the two sectors, these partnerships have the potential to succeed where traditional development programs have failed and where private sector investment alone has not translated into sustainable development. Savera Hayat and Carlo Dade discuss how these types of public-private partnerships can be useful to connect youth to jobs and to ensure more equitable and sustainable development with a more stable business environment. Globally, it is now clear that the private sector

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is the key funder and driver of success in international development. In Europe and the Americas public-private partnerships have become an essential requirement for businesses and society to both profit and grow. Canada, however, has only recently started to consider including public private partnerships for international development in a systematic and coherent manner as part of its international development strategy. In this article, we will show that private sector role goes beyond the traditional scope of Corporate Social Responsibility projects. This role requires much closer partnerships with host country governments, local

communities, NGOs and development agencies like CIDA, USAID and others. Let’s call those closer partnerships “alliances”. In USAID definition, a development alliance “combines the energy and resources of all partners to deepen development impact through aligned private capital”. A simple example of how an alliance can be developed is by matching the development challenge of unemployment with the business challenge of finding job-ready and trained workforce. The alliance can, for example, help to develop industrycertified training programs based on needs of the job market and offer job placements.


Community groups and NGOs can help the private sector understand the needs of the unemployed youth, identify the target groups with whom to work and assist in ensuring accountability and transparency of those initiatives. Governments can partner on issues like policy frameworks, regulatory matters and long-term plans for the country. Government participation is also important to ensure that initiatives support and benefit from, or at the very least do not interfere with, public sector programs and initiatives. An example of such an alliance is the International Youth Foundation’s Education and Employment Alliance. It improved and expanded education and employment opportunities for disadvantaged and unemployed youth in Tanzania, Mozambique, and South Africa. In partnership with companies like Samsung, Starbucks, and Nokia, the 320 multi-sectoral partnerships, and 43 pilot projects all over the world have benefitted over a million young people. The Reality of Cooperation Africa is an excellent example of how the traditional donor-funded projects and private sector CSR-activities were not able to create long term impact in improving the basis of sustainable societies and economies. Dambisa Moyo’s book Dead Aid has brought enough examples of failed attempts to create democracy and economic growth with aid money alone. The time has come, albeit overdue, to launch a more aggressive agenda of finding ways in which the private sector can play a greater role in Africa’s development. The reality is that, in some form or the other, African civil society, private sector, communities and the African governments have always worked together. What is now changing is an awareness of this cooperation by international development agencies and attempts to ‘scale it up’ and make cooperation across sectors a first option as opposed to an accidental and idiosyncratic one.

The window of opportunity right now for Africans is through the global demand for their natural resources. Using these resources to the best social and economic advantage becomes the challenge: how to ensure the resources truly benefit the ordinary Africans? For that reason, African governments, non-profit sector and communities need to work closely with the private sector and engage with them. How do the alliances work? The most important element of a successful alliance is starting with measurable expected outputs. While private sector has been using several criteria in deciding whether the investment of time and resources is necessary, public sector can benefit from this practice too. For the private sector, it is a standard procedure to demonstrate measurable returns on expenditures such as investments in equipment, training, research and development. Extending this discipline to a company’s CSR-initiatives is a crucial condition for success with any CSR investment and particularly so with public private partnerships. Focusing on expected returns that align with a company’s needs also tend to align with a company’s technical competencies and resources leading to alliances that “make sense.” Defining, quantifying and articulating expected returns on CSR-initiatives move these investments from the realm of idiosyncratic whim which

lower cost for inputs or recruitment of workers to name but a few. We recommend the public sector to copy the private sector’s practice, where the expected return on cooperation with private sector would be demonstrated in a quantifiable increase in some public good that is normally of concern to the development agency. Why do we talk about measurable outputs? Measuring quantifiable returns and their impact on the “seriousness” of the partnership is also important for the communities and NGOs involved in this process as it elevates their role and importance from being passive and patronized to being participants who bring real, quantifiable value. This is the time for Africa and its friends, to recognize the role of the private sector in development, work on bold new initiatives as demonstrated by organisations like IYF. Or, in Dambisa Moyo’s words “Africans want to be entrepreneurs and not aid recipients”. For companies interested in developing alliances, USAID and other development agencies outside of Canada have extensive expertise and partnership capabilities and programs that are available to all companies including those based in Canada. A good place to start is the USAID Office of Innovation and Development Alliances. http://idea.usaid.gov Carlo Dade is a senior fellow at the School of International Development and Global Studies at the University of Ottawa and negotiated and funded public-private partnerships in Haiti and the Dominican Republic with the U.S. government aid agency the InterAmerican Foundation. Savera Hayat is an international development expert, with vast experience working on education and employment programs, using the alliance building model while working for USAID in Pakistan.

characterises most charity spending. This sends an important signal to the corporate bureaucracy and to the development agencies, non-governmental organizations and community groups that are potential partners. The expected return on investment can be either increased profitability, reduction in operational risk,

THE RISING AFRICA MAGAZINE /// 25


The

Limitationsof

Mr. Joseph K. Ingram President of The North South Institute

A

s the North-South Institute prepares for the NSI Ottawa Forum on Governance of Natural Resources for African Development, in May 2013, The Rising Africa talked to the former special representative of the World Bank to the United Nations and the World Trade Organization, and the current President of The North South Institute, the leading development think tank in Canada, Mr. Joseph K. Ingram. Our editor Marje Aksli visited Mr. Ingram in his office in Ottawa, and asked what is the biggest challenge to Africa’s development today. We all know that Sub-Saharan African economies are growing at an exceptional rate, and that the narrative of Africa is changing for the better. That is important, and I am not going to repeat their successes here. Yet in spite of these positive changes the biggest challenge in Africa remains its prevailing poverty and growing inequality. Most public policy experts would say that the most important factor in reducing inequality is providing meaningful employment opportunities to a growing youth population. Africa has serious problems with unemployment, even in the fast growing economies. Much

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CSR

of the unemployment is attributable to a huge youth surge – 60 percent of the total population in Sub-Saharan Africa is under the age of 30. This creates very high dependency ratios. South Africa, for example, has extremely high youth unemployment even though they have a relatively skilled labour force compared to other African countries. How do you comment on some studies which claim that the younger the population, the lower probability that the country is democratic? That theory is inconsistent with the fact that the number of democracies in Africa has risen from 8 to 23 in the last decade. Look at what has happened with the Arab Spring! It is largely young people who have brought about democratic change. For the moment, it may not always be change that we like, but it is the first step towards an enduring democratic system. A young population is a source of economic growth – you can’t have growth without adding to the labour force and increasing skill level of that labour. Also, history and empirical evidence show that with increased education there is increased demand for greater transparency and accountability, basic building blocks of democratic development. So what do we know about the youth surge in Africa? We know that if you do not meet youth’s expectations, there are going to be political problems, and a breakdown of social cohesion producing all kinds of negative outcomes including social discontent, surge in migration patterns, contestation over scare resources, extremism and religious fundamentalism. Groups take advantage of these problems to create challenges to the state. We are starting to see manifestations of that that fundamentalism in both the Maghreb, Somalia and the Sahel: in northern Mali, and even in Nigeria where religious violence has grown. Is Africa’s challenge of jobless growth unique in the global scene? The issue of jobless and job-poor growth is not unique to Africa: it is a problem we

share globally, though not with the same outcomes. The U.S. and Canada are also experiencing the growing inequality and high levels of under and unemployment But clearly its outcomes are more acute in Africa where socio-economic conditions are much worse to begin with. Additionally, Africa has relatively weak political institutions. That said, there are significant improvements in the overall quality of governance. We are talking about a continent with 54 countries. Yet as we all know, democracy is fragile, as recent events in Mali have shown. Africa still has a legacy of corruption to deal with, as revealed by the indexes produced annually by Transparency International. What research has NSI done in the area of governance of natural resources? For almost a decade NSI has been doing field research on the subject of natural resource governance primarily in areas inhabited by first nations people in Canada and aboriginal communities in Latin America. Based on our findings we are increasingly shifting the focus of our research to sub-Saharan Africa. Our goal is to study the relationship between governance and the economic benefits of extractive activities. Natural resources exploitation is important for all countries, and the wealth generated is critical to host governments, local communities and their populations. Such resources should be exploited in a way which produces a win-win-win outcome: a win for the host governments, for the local communities and for the mining companies. What research projects does NSI work on? We work very closely with two global initiatives. One is driven largely by the African Union and UN Economic Commission for Africa. Their African Mining Vision is an attempt to create a framework – standard setting for how African governments and investing companies should behave, and what the implications might be for home governments like Canada. A second initiative we have


been involved with is led by one of the world’s leading development economists, Prof. Paul Collier of Oxford University. This initiative, the Natural Resource Charter, is also an attempt to create a set of regulatory principles by which host governments and mining companies would operate so that the exploitation of extractives as well as other natural resources, is done in an economically, socially, and environmentally responsible way producing the desired winwin-win outcome. What should the companies do in a field of CSR when the governance is weak and civil society is not strong yet? Let me start by explaining how we at NSI are planning to proceed in support of these global initiatives. The research we are going to undertake has several components, including the role of the private sector, the emerging powers, and going beyond CSR. We are also concerned with the impact that Canadian investments will have on long-term Canadian competitiveness and economic growth and poverty reduction in Africa. We have an interest in Canada being competitive as an investor in natural resources but at the same time we are also interested in how best that investment can enhance higher and more equitable growth outcomes. In this context, we are also looking at the role of corporate social responsibility, including its limitations. African governments too are increasingly conscious of the limitations of self-regulation and in the context of the Africa Mining Vision are seeking to address them. Based on NSI’s past research in Canada and Latin America our conclusion is that CSR is a necessary but not sufficient set of principles when it comes to ensuring the win-win-win outcome I referred to earlier. Indeed a growing body of research, both empirical and academic, recognizes that there are serious limitations with relying solely on principles of corporate social responsibility. Although in general, Canadian companies have behaved well globally often better than their competitors – a handful have not. And this has hurt both the Canadian brand and the sort of development outcomes we are all looking for from natural resource exploitation.

How has the limited scope of CSR hurt Canadian companies? Companies have tended to rely on Corporate Social Responsibility principles alone. But because CSR is a form of self-regulation, companies are often not accountable for whether they behave in a socially or environmentally responsible manner, especially in countries where local legislation and enforcement capacity are weak. Is reliance on self-regulated CSR going to produce the win-win-win outcome? What are the consequences if CSR fails to do so, especially in a context of high income inequality and poor socio-economic conditions? We have seen one possible outcome recently in the events at Marakana in South Africa where the violence in one mine has escalated and spread more widely creating a serious constraint on the country’s potential for economic growth. Incidences of violence have increased in frequency not only in Sub-Saharan Africa but also in parts of Asia and Latin America. While we recognise that CSR is necessary, we also need to ask ourselves if principles based on self-regulation are sufficient. Or do we need to look beyond CSR at more regulated forms of behaviour? What direction is Africa moving in? At this point it would appear that the work of the African Union and African governments is moving in the direction of stronger global standards and regulation. This may be in part d u e t o

the demands of a growing civil society in Africa demanding greater transparency and accountability. The members of the African Union are cognisant of this important development which comes with democratic governance. Is this what the forum you organize in May is about? The Forum we plan to host in May of 2013 is titled “The NSI Ottawa Forum on Governance of Natural Resources for African Development” and we plan to have academics, CSO representatives and senior policy makers from Africa, Canada, Europe and the U.S. participating. The Forum will examine not only how governments can best mobilize financial resources from natural resource exploitation but also how those governments can best spend the resources so that they contribute to the development of the national economy and their local communities. This is vital for the long term development and stability of the country. It is also vital for the mining companies themselves and their long run competitiveness. Their capacity to get contracts in the future will increasingly depend on how they are perceived both by host governments but also by the local communities. So, you say that ... ... the more responsibly the companies behave, the more they consult with the local communities, the more positive the outcome will be in terms of strengthening their brand vis-a-vis their competitors. But what if some investors buy up mining sites putting cash on the table, exceeding three-four times the market value? Certainly this sort of thing happens but if that money is used for investment, to build infrastructure locally or to invest in adding value through local processing - rather than just shipping the raw minerals out – while creating more employment locally, this is going to help. This is what Canadian companies need to be doing with greater frequency, as well as talking to the local populations and taking their views into account before making investment decisions.

THE RISING AFRICA MAGAZINE /// 27


Balancing Act of Canadian Mining in Africa The

I

Article by Lalith Gunaratne, CET, MSc nternational Co-operation Minister, Julian Fantino, announcing CIDA’s new focus on corporate partnerships promoting Canada’s economic interests abroad, especially with the extractives industry, has created a media storm. It is not an easy sell and it led to several questions about Canadian mining companies working in Africa. Are these companies good corporate citizens, responsible partners for development or are they cutting corners, abusing African governments and communities as they strive to succeed in a competitive industry? The mining industry is a cornerstone of Canada’s economy. Industry Canada estimates that $60 billion, or over 4% of GDP annually comes from mining. Its tentacles are in financial services, R&D, high-tech and heavy equipment manufacturing, education, and shipping, employing over 300,000 people. Today, the industry is at crossroads. Media attention – spurred by activist NGOs – and public scrutiny of humanrights and environmental abuses in Africa lead to

tighter domestic and international regulation. Canadians demand mining companies to be good corporate citizens. Competition, especially from China with different rules of engagement in Africa has added pressure. Further, an unpredictable global economy and poor access to capital can encourage some companies, from explorers to extractors, to cut corners to survive. African Union’s African Mining Vision and the Natural Resource Charter calling for a well governed mining sector may put further regulation and constraints on every nation undertaking mining activities in Africa. Can longer-term efforts of community engagement and more equitable communitybased partnerships for sustainable development survive in this race for profit share? David Davidson of Toronto investment firm,

Paradigm Capital says abuses are exceptions and most companies operating in Canada and overseas are good corporate citizens. Organizations such as Prospectors and Developers Association of Canada and the Mining Association of Canada support various corporate responsibility initiatives. Their Resource Revenue Transparency Working Group with Publish What You Pay and Revenue Watch is working to establish more transparency in financial transactions in host nations. What are Canada’s Own Stories? Canada has several positive stories to share, such as Rio Tinto’s Diavik Mine in North West Territories. According to Tom Hoefer, former manager of Diavik, they were required to “build enduring relationships with neighbours characterized by

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Photo by Douglas Perkins mutual respect, active partnership, and long term commitment”. Diavik worked closely

with community leaders from inception on to conclude a ‘Participation Agreement’ rather than the typical impact benefit agreement. This helped Aboriginal people in Tli-Cho and Dene lands benefit sustainably through economic development. Most of all, success came from mutual respect and engagement as partners. Mitch Bloom, a Vice President of Canadian Northern Economic Development Agency asks “What defines our country?” Bloom is a proponent of Canada’s north, rich with mineral and oil resources, and many Aboriginal peoples. CANNOR’s latest initiative within its Northern Projects Management Office ‘Community Readiness’ seeks to prepare Aboriginal communities to engage successfully with mining corporations. The successes of these pilot initiatives can be lessons learned for the Canadian government and mining companies in Africa. Focus on Africa “The future of Africa’s growth is driven by global demand for mined commodities, and Canadians continue to play a leading role. It can be a blessing but also a curse for Africa,” says Shishir Shahnawaz of North-South Institute. Canadians have an opportunity to support global commitments to transparency and better governance in Africa, especially where resources have created political and social conflict. Canadian International Institute for Extractive Industries and Development, for instance, can have an impact on these only with political independence and impartiality. Douglas Perkins, a veteran Canadian leader of the African mining industry says it is prudent to begin with the community. “I sit with people, look them in the eye and

speak to them from the heart”. This builds trust, especially when the geologist appears to prospect. The people skill, Perkins says, is a necessity for mining executives. Mining executives need leadership skills with emotional intelligence and mindfulness to reach out and be good corporate citizens. Interpersonal skills, cultural sensitivity, openness, and ability to communicate are key competencies required to engage respectfully with local communities. The challenge is finding the balance for regulation that protects community rights and the environment, without discouraging investment. In the United States, the Dodd-Frank act was extended to the Securities and Exchange Commission requirements to disclosure of company payments to governments in the extractive sector. This can legally reduce bribery and corruption. Canadian government can take a lead in these regulations. For example, Canada can show its commitment by signing the Extractives Industry Transparency Initiative. Canadian public companies generally have a high standard of disclosure in CSR reporting. However, as mining industry associations acknowledge in their Extractive Resource Revenue Transparency Working Group documents, current regulations are not evenly applied across exchanges or companies, and many reporting requirements fall short in other markets. Canadians lament that it is being held to a higher standard than China, for instance. According to CNN program Money from October 2012, the Chinese invested $16 billion in African mining projects in 2011, a tenfold increase from 2010. Competing with China is not fair game. As a contrast to individual human-rights,

China promotes collective rights in parallel with interests of the state. China uses incentives with host governments through gifts and rewards. However, China’s “shortcut” approach may not be sustainable in the long run. When human rights of local communities are compromised, it creates a backlash, locally at first, and eventually, internationally. Communities and the environment suffer and it is unsustainable for long-term profit. China will eventually have to play by the rules. Crucial Conversations The government, activist NGOs and the mining industry have differences, but must seek ways for ‘crucial conversations’ to find common ground. Canada’s strength is its global image as a fair nation, a benefactor to the poor; a peace-keeper – a reputation built over many years and commitment – has to be reinforced. Canadian values of equality, respect for cultural difference, freedom, peace, law and order must reflect the way Canada does business overseas. Canada’s changing attitudes and engagement with its own Aboriginal communities is beginning to show results, even though more needs to be done. There are many best practices at home that can be emulated in Africa. The current debate is healthy showing Africa’s importance to Canada’s economic future and the extractives industry’s responsibility to live by Canada’s values to operate with social license. Most industry leaders realize this, but every corporation, big and small, must come on board. Being a responsible corporate citizen has its material rewards, but when it comes from the heart, it profits the people and the planet, too. Author Lalith Gunaratne is a Leadership and CSR Consultant, Sage Ontario for Mindful Leadership

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Africa Government of

and the

Quebec:

A Long Standing Relationship

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olding a Bachelor Degree in Economics from the University of Montreal and a graduate of the Canadian Securities Institute, Mr. Proulx has over twenty years of experience in international affairs for the Government of Quebec. Since last year, Mr. Proulx is the Executive Director of Export Quebec, a unit of the Department of International Relations, Francophonie and Trade. The Rising Africa met him in his office to discuss the position of Africa in the initiative of Export Quebec and in the new Quebec government of Pauline Marois. Interview by Léonie Perron Export Quebec is relatively young. Could you describe the economic

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objectives of the Government of Quebec towards companies working or wishing to work in Africa? Export Quebec was essentially created to support the revival of Quebec’s exports. Indeed, in recent years, Quebec has seen a decline of its international exports. To remain competitive, companies must improve their productivity, control their costs, invest and innovate. This is essential in today’s global economy. There was a desire to boost exports by the previous government. We saw, at the beginning of the new government, that their priorities are integrity and prosperity. In prosperity, a key element is to reduce the trade deficit. In terms of trade, we do not really have control over other imports. Where we do have some control, it’s on the exportations level. We have suffered from a decline of exports to the United States and Europe, but at the same time, we have seen an increase in our exports to emerging markets, particularly China. This demonstrates that there are opportunities elsewhere and we make a place for ourselves there. When we want to revive our economy, we must continue to consolidate our traditional markets. Then, explore new markets such as Africa which we have long traditions and business relations with. Export Quebec wants to build on these relationships, including with Francophone Africa, but also with Anglophone Africa on the longer term. Essentially, we want to increase our trade with Africa. When we created Export Québec, which celebrated its first birthday on November 8th, we set a goal of doubling our exports to the BRIC countries. We would also like to double our exports to

other developing countries, including Africa. If we look at our trade with Africa at this time, it would be quite easy to double. The presence of Quebec’s export in Africa are currently 500 million dollars (excluding the service sector), which is relatively marginal for Quebec. However, we also have a long tradition of relations with Africa. For example, exports in the services sector, a significant number of Quebec companies are already active in this field. What tools are available in Quebec to help businesses succeed in the African markets? As I mentioned earlier, Quebec has established historical ties long time ago. Companies can therefore benefit from the good reputation of Quebecers in Africa. We’re not colonizers, and due to that Quebec enjoys a favourable position in the Francophone African countries. For Africans, having a new player in the Francophonie, such as Quebec can be interesting. In addition, institutional and educational linkages foster these good relationships. Historically, Quebec is home to many African students each year. They become key local contacts because they know the reality of Quebec and Africa. Export Québec also offers support. We want to work with our partners to ensure that Quebec companies have effective support services whatever is their level of experience in exporting. Among these partners, we can expect more of ORPEX, the regional offices of the new Ministry of Finance and Economy, various industry associations and businesses, EDC, Investissement Québec and the Canadian government, which allows us to avoid duplication and be more efficient. It


provides support for any Quebec exporter. Finally, Export Québec has developed a private service called Expansion Québec, which provides flexible network solutions of implementation for Québec exporters wishing to expand their presence abroad while the structure consolidates more or certain markets. In Africa, there are offices available in Burkina Faso and Morocco. Another office will soon open its doors in Tunisia. This program is based on demand; it is priced at a very competitive price and is completely self-sufficient. If there is a higher demand for a particular destination, then we will consider the possibility of opening an office. We also do several activities on networking (host delegations and trade missions), especially in collaboration with the Canadian Council on Africa, to provide information on Africa and break certain prejudices. We also help companies to get funding from major financial institutions such as the African Development Bank, World Bank, etc. We know that the politics is very important in Africa. by joining the International Relations section; we bring this dimension, which enables us to better support companies. We also have a funding program that we offer to companies which have had a great success in recent months. In your opinion, what are the Quebec economic sectors carriers in Africa? A recent McKinsey study showed the consumer market in Africa is second in the world as the best prospect after Asia. In addition to this high-potential sector for Export Québec, we look at these studies and traditional sectors for our activities in Africa. Naturally, we have an enviable position in the mining sector and as manufacturer of mining equipments. We work particularly closely with Quebec mining. Africa has great infrastructure needs. Quebec has a long

Quebec Premier Pauline Marois shakes the hand of Democratic Republic of Congo President Joseph Kabila in Kinshasa. Photo by PC. tradition in terms of education but also in regard to infrastructure, expert in mining services, renewable energy, equipment and in agricultural products and services, which all promote green development. The communication, aerospace and transport sectors are also of interest. Personally, how do you see the next five years of economic relations between Quebec and Africa? In my opinion, it is clear that we can do more, particularly in supporting our own private sector enterprises who are interested in Africa. It is a relationship that could develop further by being more present through missions or by expanding the number of offices for Expansion Quebec, for example. Africa is what China was 10 years ago as it represents a fertile ground for companies. As stated by Mr. Benoit La Salle during the Gala celebrating the 10 years anniversary of CCAfrica, we see more and more Asians who understood the importance of being present in Africa, we also see Europeans presence since a long time ago, which this increases competition for Quebec companies. We want to assist and support them in their efforts so that they

also experience success in Africa based on competition. Ms. Marois went to Africa as her first trip abroad as a Premier. Does this suggest an increase of Quebec’s presence in Africa? Obviously, I think it was made clear during her trip. Francophonie, whether with the French, the Belgians or the Frenchspeaking part of Africa, has a broader role and there is a clear interest in Africa. We also have a long political tradition with Africa. Quebec has already been present in Abidjan from 1970 to 2002. This tradition was well established and reinforced last October when the first official visit abroad by Ms. Pauline Marois as the Premier of Quebec was to Africa, to the Francophonie Summit in Kinshasa in the Democratic Republic of Congo. She was accompanied by Mr. Jean-François Lisée, the Minister of International Relations. Success in exports is not just a matter of theoretical aspect of market potential and supply of competition. It is also about relationships, perseverance, affinity and contacts with good intermediaries. The long tradition of relations between Quebec and Africa can become a great potential for our companies to invest there! To learn more about Export Québec, please visit http://www.export.gouv.qc.ca/objectifs/ exporter/accueil-export-quebec/

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IT’S TIME FOR AFRICATHE NEW INVESTMENT DESTINATION!

O

Article by Zemedeneh Negatu n beautiful sunny October day a few months ago, I had the great honor of speaking at the Canadian Council on Africa’s (CCA) 10th anniversary symposium in Ottawa. The packed ballroom at the Fairmont Hotel Chateau Laurier and the high profile attendance and the excellent question and answer session was confirmation that “it’s indeed time for Africa”. As I noted in Ottawa, at Ernst & Young, we are confident about Africa, in part, based on the impressive and sustained economic growth patterns that are being experienced across many parts of the continent. Over the past decade, Africa’s economic output has tripled, and a number of individual African economies are consistently among the fastest growing in the world. This economic growth story is underpinned too by widespread political and social progress across many parts of the continent.

Zemedeneh Negatu, Managing Partner and Head of Transaction Advisory Services, Ernst & Young, Eastern Africa. intra-African investment. Our 2012 Africa Attractiveness report shows that foreign direct investment (FDI) projects in Africa have grown at a compound rate of almost 20% between 2007 and 2011, and that they were up 27% year-on-year between 2010 and 2011. Growth in FDI projects

2011 % YoY Increase

27 %

23 % 2011 Africa’s Share of Global Projects

Number of FDI projects (2011 YoY Growth)

Top 10 investors by project 2003-2011 BUT WHICH MARKETS IN AFRICA?

For companies seeking to grow and investors seeking higher returns, the African growth story should therefore stand out, while most developed economies continue to struggle. Africa offers an exciting opportunity for investment and growth, and an alternative to the ultra-competitive Asian and other Rapid Growth Markets (RGMs). While perceptions of higher risks in Africa still linger, our research and experience suggest that investment into Africa, while still relatively low in global terms is picking up with strong growth from emerging economies in Asia and the Middle East, a resurgence in investment over the last few years from developed markets like the U.S. and UK, and remarkably strong growth in

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Despite the growing sense of optimism and opportunity, we 1. US the past few years there should not lose grip on reality. Over has2.been a feverish tone to the media coverage of Rapid Growth France Markets generally, sometimes resembling those of the 19th 3. gold rush era. Just like then, UKit takes more than luck and century resourcefulness to sustain success. Despite the progress made 4. India by RGMs generally, and the positive developments across most parts 5. of Africa specifically, one should UAE not lose sight of the very real challenges of identifying viable markets and of doing business 6. the continent. South Africa across

7.

Spain

Perhaps the most obvious initial point to make is that although 8. is often lumped togetherGermany Africa’ in comparison with RGMs like India and China, it is, of course, not a country but a continent. 9. Canada In terms of geography, Africa’s sheer size is in itself daunting; its land the U.S. Europe, China, and India 10.mass is greater than that of Portugal


FDI is flowing into a diverse range of sectors manufaturing and infrastruture-related activity account for a significant proportion of FDI New projects (proportion, 2003-11) Other 1.5%

different countries - more than in any other continent in the world - meaning 54 different (and often fragmented) sets of rules, regulations, stakeholders and market dynamics. The language and cultural dynamics are also as diverse as anywhere else in the world, with French, Arab, English, Portuguese, German, Spanish, Dutch and Italian influences mixed with numerous indigenous languages and cultures (there are over 2000 languages spoken in Africa). Tunisia

Manufacturing 24.6% Services 59.9%

Infrastructure related 13% Extraction 9.9%

Morocco Algeria

Mali

Niger

Sudan

Nigeria Cote d’Ivoire

Ethiopia

South Sudan Central African Republic Cameroon

Ghana

Manufacturing 29.9%

Chad

Burkina Faso

Guinea Sierra Leone Liberia

Services 4% Other 0.2%

Egypt

Mauritania Senegal

Capital (proportion, 2003-11)

Extraction 27.6%

Libya

A heatThemap depicting heat map depicts the relative ease of doing the relative ease of doing business across countries business across of Africa )on a scalecountries from dark gray being relatively in Africa (on a scale from easier to yellow being the most difficult. Data: Doing gray being relatively 2013 report, easierBusiness to yellow being the World Bank. most difficult)

Gabon

Congo

Rwanda Congo DR

Uganda Kenya

Burundi Tanzania

Angola

Zambia

Malawi

Zimbabwe Namibia

Mozambique Madagascar

Botswana

Source: World Bank.

Infrastructure related 38.3% Source: FDI Intelligence, data as of 3 February 2012; Ernst & Young.

BUT WHICH MARKETS IN AFRICA?

Despite the growing sense of optimism and opportunity, we should not lose grip on reality. Over the past few years there has been a feverish tone to the media coverage of Rapid Growth Markets generally, sometimes resembling those of the 19th century gold rush era. Just like then, it takes more than luck and resourcefulness to sustain success. Despite the progress made by RGMs generally, and the positive developments across most parts of Africa specifically, one should not lose sight of the very real challenges of identifying viable markets and of doing business across the continent. Perhaps the most obvious initial point to make is that although Africa’ is often lumped together in comparison with RGMs like India and China, it is, of course, not a country but a continent. In terms of geography, Africa’s sheer size is in itself daunting; its land mass is greater than that of the U.S. Europe, China, and India combined. US $2 trillion - Africa’s collective GDP (more than India, less than Brazil)

Lesotho Swaziland South Africa

Heat map – ease of doing business The complexity of growing and operating in Africa is compounded by the fact that for many companies very few of these individual markets are likely to provide the kind scale, in the shorter term at least, that makes them economically viable. Both growth and risk management are therefore framed by the challenge or effectively ‘connecting the dots’ across multiple operations and territories. Besides the issue of scale, underdevelopment also means that one needs to find solutions for challenges that one may not even consider in other regions, the infrastructure gap - in logistics, communications, transport and energy - being among the most significant. Making well informed choices about which markets to enter when and via which mode is therefore crucial. As a starting point, we believe that it is important to have fact-based conversations about Africa. Too often we have found that thinking on Africa generally and on specific markets is based on iII-informed opinion and is often stuck in a time and space in the 90s (or even before that). As a result perceptions of places like Ethiopia, Mozambique and Rwanda, for example, all of which have been among the most rapidly growing economies in the world over the past decade, are often completely divorced from current realities.

Besides the practical and logistical implications of operating across such a vast geography, the continent also comprises 54

THE RISING AFRICA MAGAZINE /// 33


What is contributing to the perception gap?

While the facts tell a story of reform, progress and growth, both the results of our Africa Attractiveness survey and anecdotal evidence from the numerous interactions we have with business people and investors around the world, demonstrate that perceptions of Africa as a high risk, difficult, and sometimes dangerous place to do business are still very real. These perceptions generally relate to a deep-seated view that Africa is more politically unstable, more corrupt, and a more challenging place to do business than anywhere else in the world. There are a range of different data points that can be used in conducting a country risk analysis, but, to illustrate the process and as a starting point we suggest assessing the following factors: (1) The quality of governance, (2) Levels of democracy, (3) The strength of the institutional environment, (4) Corruption, (5) The ease of doing business and (5) The strength of the financial and capital market systems. Distribution of the African population by income (including remittances) (2010) Poor (<$2 per day) 36.5%

Floating class ($2-$4 per day) 24%

High income (<$20 per day) 18.8% Upper middle ($10-$20 per day) 10.8% Lower middle ($4-$10 per day) 9.9%

Source: The Middle of the Pyramid: Dynamics of the Middle Class in Africa, African Development Bank (AFDB), April 2011

300 million middle-class Africans. Bigger than India’s “... a significant part of the African growth story is about rising domestic consumption. This shows that growth is not entirely unbalanced and not purely dependent on resource exports.”

By creating a composite index using some regularly used sources, we can quite easily build up an objective comparative view of the risk profiles of different countries. In the ‘moderate’ risk category are countries like Nigeria and Egypt, the two largest economies in Africa after South Africa. In the case of Nigeria, for example, governance and corruption remain challenges and the regulatory burden of doing business is relatively high, although tremendous progress has been made over the past decade in institutionalizing democracy and, more recently, in revamping the financial system. Countries like Tanzania, Ethiopia, Mozambique, Cameroon and Senegal also fit into the ‘moderate risk’ category. Thereafter there is a fairly long list of ‘high risk’ countries, which includes Angola and the DRC. On any widely used measure or element of country risk, be it governance, corruption, democracy,

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relative ease of doing business etc., these countries will tend to be among the bottom ranked in the world. This is not to imply that they should be avoided. After all, many of these countries have abundant resources, and can offer rich rewards to early movers. However, one must enter into these markets with one’s eyes open, be very clear on what is non-negotiable in terms your corporate ethics and values, and have a robust system of governance, risk and controls.

ASSESSING MARKET OPPORTUNITY

The relative risk profile of different markets needs to be balanced against the potential rewards on offer in these markets. Indicators and drivers of opportunity will be very different across different sectors. However, as a start, we can select some broad pointers towards growth potential and opportunity such as population size, population size in largest city, the size of the economy (current GDP), GDP growth trends (historical and forward-looking), gross capital formation trends (as an indicator of investment in physical assets in the economy). Although these indicators will probably be less directly relevant to companies focused on resources and infrastructure projects, they do provide an indication of the overall health and potential of an economy. As noted in the table below, Nigeria heads up the opportunity index ranking. With the largest population in Africa (at over 160 million it also has the 7th largest population in the world), a sizable economy. Ethiopia and Mozambique have consistently been among the fastest growing economies in the world for over a decade, while countries like Angola and the DRC benefit from extremely rich resource bases. It is worth noting that the three largest members of the East African Community (EAC): Kenya, Uganda, and Tanzania, are all in this top list. Within the next five years the population and economic output of the EAC is forecast to exceed that of both Bangladesh and Vietnam’s today. By combining the risk and opportunity indices, we can create a simple but effective framework for key stakeholders to rationally assess the pros and cons of different African markets. On the horizontal axis, we plot where the country sits on the risk index, while, on the vertical axis, the opportunity index is plotted. We also add a third dimension (indicated by the size of the bubble) from our Africa attractiveness research, which is the number of FDl projects invested into that country between 2007 and 2011 (a


key period, which demonstrates recent performance and resilience through the global economic crisis).

To illustrate the process, we have selected 18 African markets that are among the more popular FDI destinations, and are frequently referenced in our conversations with clients. When classified in this way, we can roughly categorize African markets into four broad categories as illustrated in the table on the right.

More than of

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For investors beginning or in the early stages of their African growth journey, we would suggest the following are among the critical success factors: (1) choose your perspective on Africa — glass half full or half empty? (2) build up a portfolio of investments, (3) invest to get the best quality human resources (4) expand from strategic economic hubs and think about non-conventional market groupings and (5) make your broader socioeconomic impact a cornerstone of your Africa growth.

50 people celebrated the launch

n November 2nd, 2012, the Africa House in Montreal hosted the Canadian Council on Africa members and friends to celebrate the official launch of the Rising Africa magazine.

$5.95 Canadian

RECOMMENDATIONS FOR INVESTORS

in Montreal!

By Leonie Perron During the past 10 years, CCAfrica has been growing and developing annually. This year, in addition to recreating our logo, we enhanced our newsletter into a full-size magazine on African issues. The first edition turned out to be surprisingly successful – after the release in October our magazine has been viewed over 300,000 times online. We had the honour of hosting Mr. François Barrière, Vice President of Business Development and International Services of Laurentian Bank as a keynote speaker on the launch of our magazine’s October edition in Africa House of Montreal. Mr. Barrier has an excellent reputation in the banking sector and has been very proactive towards Africa. He worked for almost twenty years in the field of financial markets and served on the Board of Directors of several companies. An outstanding speaker and a well known financier, he talked about international services and about the African financial position. We thank all participants and supporters for their interest and appreciation for the Rising Africa. Your positive feedback encourages us to continue to thrive. We would also like to thank our partner, the House of Africa for hosting CCAfrica. The Africa House, headquartered in Montreal has offices also in the United States, in Ivory Coast and in Mali. House of Africa promotes Africa through art and tourism, and by publishing African literature. Finally, a special thank you to our media partners: AffutJob, REPAF, Frunil, FFA, and AMCEQ Africa Expansion. Be on the lookout for our next networking cocktail coinciding with the release of our next issue. It is the only magazine with Canadian content on African issues!

THE RISING AFRICA MAGAZINE /// 35


Nigeria Frontier Emerging Market or Top Twenty in 2020? Article by Chris W. J. Roberts

G

iven its population (over 160 million), tremendous oil and mineral wealth, fertile land, and the dynamism of its people, Nigeria should be a world leading economy. To help it reach that potential the government has promoted its Vision 20: 2020 plan to propel the country into the top 20 global economies. Goals include a GDP of $900 billion and per capita income of $4000. However, other Nigerians are not convinced. They suggest an alternative approach: accept that Nigeria remains a Frontier Emerging Market (FEM), a description that captures current conditions, potentials, pitfalls, and opportunities. A FEM can offer high rates of return and reward those willing to take a medium-to-long term risk perspective, to benefit as the economy surges ahead and infrastructure strives to keep up. Top 20 economies experience slower growth (even China’s headline growth figures are slowing year-over-year) and can be a tougher market to enter and gain traction. Nigeria has its own challenges, but the opportunities and the potential upside makes this a world leading FEM. Annual economic growth is projected by the IMF to average nearly 7% out to 2015. A few Canadian firms are riding the FEM wave, but too many are missing the boat. The planned business mission to Nigeria and Ghana early in 2013, to be led by International Trade Minister Ed Fast, is designed to put more Canadian boats in that water.

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The emerging contemporary skyline of Victoria Island, Lagos. Personal Reflections slower and less reliable than I experienced Upon arrival in Nigeria after five years in a recent trip to Arusha, Tanzania. Still, of absence, I admit some personal anxiety. somehow, this city functions as does this Violence in the north spearheaded by Boko country, paradoxically offering tremendous Haram – a putative Islamic organization hope and dynamic opportunity in spite of that Islamic authorities across the country profound challenges. Corruption and selfdenounce and label as an extremist cult aggrandizing politicians remain a rallying – and heightened insecurity in the Delta cry for the majority who acknowledge region are realities that cannot be ignored. an ongoing crisis of both leadership and Our own Department of Foreign Affairs institutions (to emphasize this particular and International Trade (DFAIT) issues point the power is off again...“Ah NEPA*”). travel warnings for the country that capture But the reality remains – Nigeria is those concerns: both the north and the a tremendous FEM that cannot be southeast Delta region are overlooked. rated risk level IV: “Do not Change is in the Air travel.” Despite all the lingering The rest of the country, challenges, change is in mainly the southwest, the air. Across a number earns the “No non-essential of critical sectors, travel” level III rating, just including the constitution, low enough not to invalidate banking, oil, power, and my travel health insurance, transportation there are but likely enough to scare Full page public service ads, sup- hints of potential progress. away anyone new to the ported by CIDA among other do- Currently, the country is nors, list the many amendments country. undergoing a wide review being considered as Nigerians Lagos itself, the country’s review the 1999 Fourth Republic of the 1999 Fourth Republic Constitution. constitution, including sprawling commercial public consultations partly metropolis, boasts its own distinct challenges. Costs are high, security funded by CIDA and other donor agencies. Proposals include creating more states, remains an over-riding concern, and simple logistics can consume considerable devolving more power to states, limiting time and effort. Traffic ‘go slows’ remain the President and State Governors to a Lagosians’ biggest hurdle, with regular single six-year-term, and establishing a petrol shortages and electricity outages single, national independent electoral battling for the second biggest headache commission. facing residents and companies alike One key proposal is to limit the President (e.g., electricity cut out twice briefly while and Governors’ current immunity from writing the first two paragraphs of this prosecution while in office to only civil article). Internet access can be sporadic, proceedings, making them vulnerable to

* NEPA was the Nigerian Electic Power Authority (since replaced by PHCN), but

the running joke in the country is, when the power goes out, to sigh “Ah, NEPA.”


The emerging contemporary skyline of Victoria Island, Lagos. criminal investigation. While it is early days in the process, some constitutional tinkering could prove beneficial to the Fourth Republic, but as Canadians well know constitutional tinkering is never easy. tutional tinkering is never easy. Important economic sectors are likewise undergoing reform. After the global recession exposed the weaknesses of ten marginal Nigerian banks, the Central Bank and the entire industry stepped in to clean up the bad apples and recover assets stashed abroad. The long awaited restructuring of the Nigerian oil and gas governance and regulatory regime is inching along in the form of the omnibus Petroleum Industry Bill. Although some issues remain unresolved, and some international oil companies publicly worry about fiscal adjustments, a measure of certainty and clearer division between the federal government regulatory and operating functions will only enhance the sector. In the meantime some companies have taken a wait-and-see approach to new investment, and recent severe flooding in the east has impacted both oil and Liquefied Natural Gas exports. The Dance Around Subsidies and Refineries Then there is the fuel subsidy debacle: President Goodluck Jonathan tried to remove subsidies but immense pressure from both labour unions and fuel importers forced him to reinstate them. The subsidy only benefits a narrow few, mostly the licensed importers, and shortages abound. When petrol is available, it is rarely sold at the regulated N97/litre (C$0.62) price. And

there is no incentive to revitalize existing or build new refineries until the subsidy and the regulated price are removed. Hundreds of idle fuel tanker trucks sit at a junction between Lagos and Ibadan, waiting for orders to pick-up or deliver fuel across the country. Manipulation of supply creates black market rents, and a recent commission identified significant problems in the subsidy scheme, creating a political crisis at the highest levels. The countryâ&#x20AC;&#x2122;s three giant state-owned refineries have been ordered to be back up and running by 2014, but they are old, in need of substantial maintenance and overhaul, and even at full capacity cannot meet the fuel requirements of the country. Other potential refineries are on the books, including Chinese, American, and Canadian-partnered projects. No one knows what national fuel consumption would be if supplies were plentiful. The entire Nigerian petroleum sector is in transition but there is hope, though not certainty, that it will function better after a difficult transitionary phase.

Power Struggle in Power Sector The petroleum sector is a huge export earner for the country, but power is the lifeblood of any economy and the quagmire of Nigerian reform efforts. In October, the privatization process stumbled ahead, with a number of preferred bidders awarded existing state-owned generation and distribution companies. These transactions will earn government well over $1 billion if all successfully close. On the generation front, over 1,100 MW were added to the grid this year, inching towards a target generation capacity of 6,000 MW in the near term (excluding the millions of emergency generators used by households and businesses). But compare that to the province of Alberta where oil sands development and population growth threatens to hobble an electrical system that already generates 14,000 MW. And increased power generation and rehabilitated distribution companies will alone not solve the problem: Nigeriaâ&#x20AC;&#x2122;s transmission system requires both a technological and administrative overhaul.

Hundreds of fuel tanker trucks line the highway at a junction between Lagos and Ibadan.

THE RISING AFRICA MAGAZINE /// 37


Manitoba Hydro International (MHI) won a competition in 2011 to take over service provider. But after significant delays in the scheduled handover to MHI, it was reported that President Jonathan arbitrarily rescinded the contract on 14 November, 2012. The following day that report was called into question but a flurry of activity in Abuja illustrated that the issue remained unsettled. Subsequently, the President reaffirmed the contract, but the ongoing uncertainty may have far reaching negative repercussions for the power sector and beyond. There are many moving parts to power sector reform but without it Nigerian economic growth and industrial diversification will remain constrained. In transportation infrastructure, however, there are nascent signs of hope. Rail is a priority focus, both inter-city and for urban mass transit. Canadian consulting firm CPCS worked on the 27 km Lagos “Blue Line” project, the first of seven proposed light rail lines around the megacity. While roads vary in quality everywhere and simple maintenance would go far to prevent cavernous potholes, some major rehabilitation projects are underway. In Lagos there is a concerted effort to improve traffic flow, safety, infrastructure, and public transit. Okadas, those ubiquitous and dangerous motorcycle taxis, have been banned from major expressways. Regular taxis, bus drivers, and motorists are pleased; commuters, okada drivers, and orthopaedic surgeons less so. The Third Mainland Bridge that skims for 11 km over the Lagos Lagoon just reopened after months of renovation work, a few days ahead of schedule. Newly painted lines and signage portend changes to come, as does an amusing Lagos TV commercial urging adherence to traffic laws, and threatening community service punishments for those who break them. It will take some time to modify what can only be described as the aggressive Nigerian driving style, but improved infrastructure, education, and public

transportation options may help undo the daily gridlock most Lagosians face. Canadians Cashing In and Missing Out DFAIT reports that in 2011 bilateral merchandise trade between Canada and Nigeria surpassed $2.7 billion, an increase of 44% over the preceding year. It Ubiquitous cell phone towers and mobile phone is not clear if those statistics capture Canadian goods advertising illustrate a highly competitive marketplace. assembled and shipped from elsewhere, including RIM’s Blackberry. As current affairs, sports, or music videos are recently reported in the Globe and Mail, not running, and the quality of Nollywood the Blackberry is doing very well in Nigeria productions and local music videos are (and elsewhere in Africa and Asia). rapidly improving. It is hardly an inexpensive business or You can catch the latest Justin Bieber or government tool, but in some circles it is Rihanna video occasionally, but Nigerian indispensible and in others a status symbol. and other African performers predominate. When internet connectivity is unreliable, And Nigeria is increasingly exporting its Blackberry’s BBS and email functionality is cultural, banking, and franchise successes a high value proposition. That Blackberry across Africa. is a Canadian product, however, is not That all said, the obvious opportunities widely known. Canada does have a for Canadian business in Nigeria remain certain cachet here: Canada Dry branded the extractive sectors – not just oil and products quickly became the high-end soft gas, but minerals too – and infrastructure. drink when introduced. Without going But thinking outside the box captures the overboard, any new Canadian entrant to the range of FEM opportunities. Franchising Nigerian market would do well to highlight is taking off here, and Nigerian brands its Canadian roots. For some reason RIM such as Chicken Republic are expanding to does not do that here, perhaps a result of Ghana. KFC and some South African fast its African operations being handled by its food brands are well established, but there UK offices. is room for more before the global giants Blackberry does well in a highly arrive, including non-food sectors. competitive cellular private sector. It is the Banking too seems an obvious choice: private sector that works well here. Canada’s banks are increasingly global, but Over 105 million mobile phone none has a foothold anywhere in Africa. subscribers produce considerable revenue Nigerian banks are going continental, while and demand for related products, and many international banks are moving in. competition keeps costs low for consumers. Education remains a tremendous Digital banking is taking off. Television, opportunity across all sectors and levels, newspaper, internet, and radio advertising from primary to vocational and university. for cell companies, consumer products, The aviation sector, like the power sector, and banks dominate an increasingly seems to be in perpetual crisis but both professional marketing sector. international and domestic routes are Nollywood television productions severely underserved by reliable operators. dominate local channels whenever news, And finally the consumer goods market, from the affluent looking for international quality to the cost-conscious mass market, can drive real sales. Nigeria as a FEM requires perseverance, but it cannot be ignored. Chris W. J. Roberts is President of African Access Consulting and is also currently a PhD candidate in political science at the University of Alberta. He was a founding The newly renovated Third Mainline Bridge in Lagos. director of CCAfrica in 2002.

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Brazil in Africa:

The Presence of Today Makes All the Difference

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n November, the Chatham House published a Briefing Paper about Brazil’s relations with Africa. Find a brief summary below.

Brazilian Presidential Visits to Africa

5-6 Visits 3-4 Visits 2 Visits 1Visit

Brazil’s attitude towards Africa can be illustrated by the comment of its former president Lula da Silva, who said the following at the Opening Ceremony of the 13th African Union Summit on July 1 2009: ‘Brazil is not coming to Africa to expiate the guilt of a colonial past. We also don’t see Africa as an extensive reserve of natural riches to be explored. Brazil wants to be a partner for projects of development. We want to share experiences and lessons, add efforts and unite capacities.’ Largely unnoticed by international media and academia, South America’s economic powerhouse Brazil has actively enhanced its presence on the African continent during the last decade. In the shadow of its BRICS partners China and India, whose engagement with Africa has attracted international attention and spurred a heated debate, Brazil has implemented an equally active, though less controversial policy towards Africa and has emerged as a relevant player on the continent. In less than ten years, Brazil has more than doubled its diplomatic presence in Africa from 17 to 37 embassies, and it is now among the countries with most diplomatic representations there. In parallel, relations in the economic realm have intensified, with trade increasing

six-fold. Although still a recipient of development New economic partnerships have been assistance itself, it has emerged as a new forged, linking Brazil’s Common Market donor in Africa. of the South MERCOSUR with the Noteworthy in this context is not only its Southern African Customs Union SACU decision to relieve African countries’ debts and the Southern African Development of more than US$ 1 billion, but also the fact Community SADC. that more than half of Brazil’s technical In addition to its traditionally close cooperation resources is directed towards ties with Lusophone Africa, united in the continent. the Community of Portuguese-Speaking In terms of the number of embassies Countries, Brazil has further established in Africa, Brazil ranks fourth, with 37 partnerships with other African regional embassies, after the United States (49), or sub-regional organizations on a China (48) and Russia (38). bilateral basis. Cooperation agreements with the Economic Summary: • Over the last decade, Brazil has expanded its Community of West African States (ECOWAS), the New engagement with Africa, doubling its diplomatic Partnership for Africa’s presence from 17 to 37 embassies. Development (NEPAD) and • New economic partnerships have been forged, the African Union (AU) raising trade with Africa in the same period from complement Brazil’s new US$4.2 billion to US$27.6 billion. engagement with regional integration schemes in Africa • Oil and other natural resources account for and underpin its quest for a 90% of Brazil’s imports from the continent more active role there. and Brazilian investment is focused mainly on Another indication of Lusophone Africa. Brazil’s new commitment to • Brazilian policy-makers see Africa’s biggest Africa is also the number of potential as providing a consumer market for visits by its heads of state. their country’s manufactured goods. Former president Lula da Silva visited 29 African • Brazil also uses its Africa policy as a means countries on a total of 12 to achieve its foreign policy goal of being journeys during his eight recognized as a major power. years in power (2003–10). • South–South cooperation is a key driver of His successor, President Brazil’s Africa policy as it is seeking support for a Dilma Rousseff, despite her reluctance to travel and permanent UN Security Council seat. her rather low interest in • Brazil advocates South–South cooperation foreign policy, has paid a visit projects that are based on its own development to three African countries experience. Biomedical and health research during her first year in and agricultural research have been turned into office. Numerous journeys by foreign and economic effective foreign policy instruments. ministers, accompanied by large business delegations, have further Already, 42% of the goods that Brazil exports contributed to the development of relations to Africa are manufactured products. As and a growing Brazilian presence in Africa. the average share of manufactured goods Brazil has also made an effort to in Brazil’s total exports is only 36%, the contribute to Africa’s development by African market ranks significantly above transferring technical expertise and average. providing assistance to African countries.

THE RISING AFRICA MAGAZINE /// 39


99

Playing Catch-Up

With China in Africa

R

Article by Chris W. J. Roberts egular subscribers to for productive engagement in Africa’s CCAfrica’s African News contemporary growth and development. Clipping Service, or regular An invited group of distinguished business visitors to Africa, are scholars, private sector representatives, well aware of China’s resurgence across and officials from Canada, China, the USA, the continent. This is not news to anyone. Europe, and a number of African nations Two-way trade between China and Africa assembled at IDRC for open discussions increased from US$10 billion in 2000 to under Chatham House rules. A keynote US$166 billion in 2011. China Eximbank address by the former Chinese ambassador alone supported over US$60 billion of to South Africa Mr. Zhong Jianhua, who is transactions in the past decade. In 2009, currently Special Representative on African China surpassed the USA as the leading Affairs in the Ministry of Foreign Affairs, trade partner with the continent. Over 1 marked his first public discussion of Chinamillion Chinese are now living or working Africa relations in North America. there, with 800 Chinese state-owned Five overarching themes emerged (including national, state, and village during the conference. First, myths and enterprises) and 2000 Chinese firms active generalizations about China’s resurgence overall, excluding the growing number of in Africa tend to obscure or lag behind Chinese traders and proprietors popping the realities and the nuances. For example, up in retail trade and artisanal mining. simplistic descriptions of Chinese Estimates vary, but Chinese FDI exceeds “neocolonialism” in Africa produce more US$15 billion and could be as high as heat than light. Second, China, Canada, 9/11and US$40 billion. particularly Africa cannot be analytically The first ever Africa attacks in But in order to generate deeper captured as monolithic actors. Third, it is Trade Strategy, clear that Africa is more important to China understanding about China’s resurgence the U.S. than ever before and vice versa. At the same in Africa, the China Institute ofand the CIDA’s University of Alberta, in collaboration with time, Africa is becoming recognized within Africa Direct Canada as increasingly salient for economic the International Development Research 9/11 prosperity as well as foreign/security policy Centre (IDRC) and DFAIT, convened a initiative The first ever Africa attacks in conference in Ottawa in late September reasons. Creation of 2012 to explore Chinese and Trade CanadianStrategy, Fourth, China’s wide engagement with the U.S. experiences, policy options, and outlooks Africa causes Chinese policy to adapt NEPAD

across many dimensions. Despite obvious asymmetries, African states, crises, and civil societies act in ways that force Beijing to respond, learn, and sometimes change course. And fifth, as one distinguished scholar pointed out, “to understand China in Africa you have to understand China in China.” That is, Chinese businesses bring their experiences and practices from their home environments with them, and it is the strength of host institutions which can determine how Chinese entrepreneurs behave. For example, recently in Ghana unlicensed Chinese miners have been arrested and some retail shops closed. So, what exactly is China doing in Africa? It became clear that despite China’s current leadership transition at home, efforts towards Africa have not lost momentum. During the fifth Forum for China-Africa Cooperation turns in July to 2012, Canada’s attention Afghani China committed up to US$20 billion in 2002toG8 Summit in preferential credits African states for infrastructure, agriculture, manufacturing, Kananaskis + CIDA c and SME development. This is in addition commitment of the Can to existing grants, zero-interest loans, investment and 500commercial million $to Afghanis Allian Canada’sfunds, attention turns export credit channels. 2002to G8Canada in Busin Zero-tariff treatment is Summit to be phased Creation in for 97% of of products exported Fund for +from CIDA Sou Kananaskis c African Less Developed Countries, not just CCAfrica

and CIDA’s Africa. of the Can Afr commitment 9/11 Canada’s attention turns to Afghanistan 9/11 Canada’s 9/11 attention Canada’s 9/11 turns attention Canada’s 9/11 to Afghanistan turns attention Canada’s to Afghanistan turns to Afghanistan Africa Direct 500 million $ Allianc The first Africa The first ever The Africa first ever The Africa first ever The Africa first ever Africa attacks attacks inever attacks in 2002 attacks attacks in 2002 G8 Summit G8in Summit 2002 G8 inin Summit 2002 G8 in Summit in the Senate DFAIT ends DFAIT the in endsDFAIT the ends DFAIT the ends Sc Canada cuts Canada 5the cuts Canada 5 repo Trade Strategy, Trade Strategy, Trade Strategy, Trade Strategy, Trade Strategy, the the U.S. the U.S. the U.S. the U.S.CIDAKananaskis Kananaskis + Kananaskis Kananaskis +U.S. + + CIDA closes CIDAProgram closes CIDA closes closes for initiative for countries for Program for Program Program for reassesse to Canada African countries African African co Busine and CIDA’s and CIDA’s and CIDA’sand andCIDA’s CIDA’s commitment of the commitment commitment of the Canadian commitment of the Canadian of the Canadian Canadian Market Export Market Export Market Export Market Export Market Canada's as CIDA priority as CIDA priority as CIDA p Africa Africa Direct Africa Direct Africa Direct AfricaDirect Direct 500 million $ 500 million500 $ million 500 $ for million $ Alliance Alliance for Alliance forAlliance for Creation of Creation of DevelopDevelopDevelopDevelopapproach t countries, countries, countr Fund for Sou initiative initiative initiative initiative initiative toment Canada to Canada to Canada to Canada Business Business inBusiness inBusiness in in ment mentDFAITment Africa bu closes DFAIT closes DFAIT cl of offor Creation ofCreation Creation ofCreation ofCreation ofCreation Creation ofCreation of ofCreation Creation Canada closes Canada closes Canada closes Canada closes Canada closes Fund for Fund for Fund for Fund South South South South NEPAD CCAfrica in 2004 in 2004 in 2004 in 2004 embas-ignored embasemba Africa. NEPAD CCAfrica NEPAD NEPAD CCAfrica NEPAD CCAfrica NEPAD CCAfrica CCAfrica 4 diplomatic diplomatic Afri 4 diplomatic 4 diplomatic 4 diplomatic 4 Africa. Africa. Africa. Africa AfricaAfrica. Africa Africa sies sies sies

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the Least Developed Countries to which Canada’s tariff reduction regime Market Access Initiative is directed. (See the October 2012 edition of magazine for the article on Canadian MAI.) China is now Africa’s number one creditor and a fast growing investor (although Chinese financial transactions are not easily tracked and categorized due to lack of transparency and definitional challenges). If Chinese firms take over both Nexen and African Barrick, significant Canadian FDI in Nigeria and Tanzania will immediately shift to China’s column. While China imports predominantly raw materials from Africa, it exports consumer goods, electronics, and heavy industrial equipment. China has a stake in both the development of infrastructure to enable easier access to Africa’s natural resource wealth and in lifting more Africans into the middle class. African consumers can then acquire higher value Chinese goods while African workers and managers can be mobilized as part of China’s global value chain. Some Chinese assembly and finishing has already moved to Africa, including auto and motorcycle assembly in Kenya and utensil finishing in Ghana. More will follow, but lack of cheap power, a better trained workforce, and efficient transportation slow the pace of Africa’s industrialization. What is Canada doing? Canada showed signs of engaging Africa more broadly at the turn of the millennium. As the graph below shows, Canada initiated several good policies towards Africa, but the momentum was lost with the post-9/11 attention turning towards Afghanistan

and then the new g o v e r n m e n t ’s prioritization of Latin America in 2007. Canada cannot duplicate China’s success in Africa, but with greater attention and public-private cooperation it can develop appropriate policy tool-kits to support Canadian private sector activity in Africa and find ways to link to and leverage China’s massive presence. There are opportunities for CanadaChina-Africa company partnerships to access China’s much larger financial appetite and options for African projects. In some sectors, especially infrastructure, Canadian expertise in privatization and management combined with Chinese engineering has revitalized moribund public services. Chinese firms can be competitors like those from other countries, but they are not necessarily so in every case. And in the extractive sector Canada should continue to promote world-class health and safety, environment, and corporate social responsibility practices for firms flying the maple leaf. This becomes a competitive advantage and works against a creeping resource nationalism in some jurisdictions. If Chinese mining firms face pressure to match Canadian standards, as they do in Zambia, everybody wins. Canada’s status in Africa is at a tipping point. Canadians must get beyond outdated and dismissive

Ambassador Zhong Jianhua, China’s Special Representative for Africa, addresses the conference

images of Africa, ones overly focused on Africa’s problems that cause opportunities to be missed. Similarly, they need to go beyond simplistic perspectives about China’s deepening engagement in Africa, which is varied and part of a global economic transformation. A late Canadian reawakening brought on by China’s rise in Africa and the continent’s economic growth is a welcome development, but without concerted attention and substantive policy shifts another window of opportunity to widen both our export markets and our investment opportunities could be lost. Canada remains one of the most outward oriented economies and cannot miss any opportunity to expand its level of trade and investment with non-traditional markets. The days of counting on the US, Europe, and Japan to drive export growth are long gone. Chris W. J. Roberts is President of African Access Consulting and is also currently a PhD candidate in political science at the University of Alberta. He was a founding director of CCAfrica in 2002.

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THE RISING AFRICA MAGAZINE /// 41


Government Efficiency Through the Lens of the Postal Service

Article by Alberto Chong

need to be long-lasting and complicated process?

hereas there is widespread consensus about the development needs in Africa, there is also broad agreement that such needs cannot be fulfilled quickly, but will take many years, even decades, in order for societies to begin seeing results. Improving the reach and quality of education, developing a better health care system, building basic infrastructure, and in particular, improving the quality of institutions, all seem like difficult and complicated tasks. Very often, many of the problems that afflict several African countries are attributed to the lack of quality of their institutions and, in particular, to widespread corruption at many levels of the public sector. In fact, there is a tendency to assign many of the problems observed in African to the corruption. Are there unaccounted government funds for health care? Corruption! Have foreign aid flows gone missing? Corruption! Are there any purchases of military equipment? Corruption! Why are there projects that never come to fruition? Corruption! While institutional problems reflected in the form of rent seeking and corruption pose many problems in the region, the really interesting question to answer would be to understand how well the public sector functions when isolating for corruption. Doing this would help policymakers identify specific issues that may be relatively easy to fix and which may yield huge development results in the short run. Maybe the development process does not

But, is this possible? In a paper I recently co-wrote with colleagues from schools in the United States and France, we identify a government 1 activity in which corruption plays no part. We choose fairly simple and universal government service – postal service – as all countries subscribe to an international postal convention

W

which requires them to return the letters posted to an incorrect address. We followed a strict protocol: between December 2010 and February 2011 we sent two letters to deliberately “chosen” nonexistent addresses in the five largest cities in each of nearly 160 countries around the world, including many African countries. We then measured the days it took for the postal service to return this letter to the very same location, where it was sent from in Cambridge, Massachusetts. We made sure that all the letters looked exactly the same, including a plain white 1Chong,

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envelope containing a one-page letter with generic content. Under the sender’s address, it said in larger bold letters PLEASE RETURN TO SENDER IF UNDELIVERABLE. In short, our aim was to measure the “return to sender” days of the postal service as a proxy of government efficiency. This measurement becomes a new and objective indicator of government efficiency, which can be used to understand the determinants of the quality of government, say, for example deciding which country’s public service to use for public-private partnerships. Corruption does not

play part in this experiment. There is no reason for postal office workers to ask for bribes. Furthermore, there was no discernable incentive for them to steal a plain vanilla letter. The only thing that was required of postal service workers was, essentially, to perform the very simple task of placing the wrongly addressed letter to the corresponding bin so that it could be sent back to the United States.

Alberto, Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer, “Letter Grading Government Efficiency”, NBER Working Paper # 18268, August 2012.


What did we find? Perhaps unsurprisingly, countries in Africa did not do very well in relation to other regions of the world. The number of days it took for the continent to send the letters back was 321 days on average (see the map). In contrast, the number of days it took Latin America and Asia were 221 and 269 days, correspondingly. It takes 228 days to return the letters from Middle East. Is it the distance perhaps from North America, which explains the delay of the letters? Comparatively, the countries Down Under also confirm the letter grading of

government efficiency is not influenced by distance: Australia returns letters in 96 days on average, while it takes Fiji 388 days to do the same task. The country in Africa that returned the letters the fastest was Morocco, which took only 62 days. Morocco was also the only country which returned all 10 letters One factor that explains the efficiency of the postal service in returning letters promptly is the technology employed and, in particular, the access to automated postal code readers; another one is related to the use of a Latin alphabet in the country. A third factor, the most surprising, has to do with firm organization, delegation of tasks, and simply those factors related to how well managed an enterprise is. These type of considerations are “no brainers” in the private sector. However, they are rarely considered in the context of public enterprises. These factors seem to be crucial for the well functioning of public firms, too. Interestingly, institutional variables, including political influence and corruption do not explain the efficiency of the postal service, which reinforces the idea that a lot can be done with relatively little effort.

indicating highest government service efficiency in Africa. Zambia, South Africa, and Mauritius and Maldives also returned surprisingly high portion of letters: 80 and 90 per cent respectively. On the other hand, it took Mauritania 416 days to return only two letters of ten. On average, roughly a third of all the letters was returned to the sender in the U.S. from Africa, while 11 countries did not send the letters back at all. The Good News While the

are not due to structural, long-term, issues that require impossibly complicated and equally long-term fixes. Basic management in the public sector may yield noticeable improvements in efficiency. Achieving workers to do their jobs, as simple as they may be, can greatly help the public sector. Perhaps, the right motivation to workers would suffice. This may not be an easy task to do, but it is certainly not as difficult as to change the institutional setting of a country. Obviously, one does not substitute for the other, but they certainly complement each other. The second lesson of our simple experiment is that the same type of policies will yield much higher returns to Africa than, to say, Latin America. In fact, the improvement in efficiency of having workers do their assigned task, simple or difficult, will yield much higher returns to countries in the region. We do not want to see the cup half full. It is half full. Alberto Chong is a Professor in the School of International Development and Global Studies. He had worked a dozen years in the World Bank and the Inter-American Development Bank. His research interests include the roles of private sector, media and institutions in development.

findings above might look like they are “more of the same” where countries in Africa show considerable lags with respect to other emerging regions, our results show that there are at least two pieces of tangible good news for the region. First, some of the problems that affect African countries can be easily fixed as they

RETURN-TO-SENDER TIME MAPPED 62 Morocco returns the letters fastest Good performers: Niger, Mali and Burkina Faso 251 In West Africa, it takes on average 284 days to return letters to sender. This is the second best regional result in Africa.

Under 100 days 100-200 days 200-300 days 300-400 days No letters returned 400 days

416

258

Algeria returns letters in 103 days Mali

30 % letters returned in 336 days in Libya

Niger 276

275 231 198

Sudan did not return letters Ethiopia 243

295

282

Congo retruned 1 letter in 397 days

Angola returned 2 letters in 404 days

North Africa as a region returns the letters fastest: 280 days. However, this is achieved by the help of Morocco, Algeria and Tunisia, who perform very well compared to other countries in NA.

Egypt did not return letters

Chad

Nigeria does not return letters

Central African average 362 days

It is surprising to see the Rwanda, famously non corrupt country, among the list of countries which failed to send the letters back. Its low record of postal service efficiency seems to be in contradiction with high scores the country receives in Ease of Doing Business index, and reasonable middle placement in the rankings of Ibrahim Index of African Governance.

Chong, Alberto, Rafael La Porta, Florencio Lopezde-Silanes, and Andrei Shleifer, “Letter Grading Government Efficiency”, NBER Working Paper # 18268, August 2012.

Kenya 296 Tanzania 419

Zambia 295

414.

295

Mozambique 269 Namibia

238 Botswana

189

Burundi returned only one letter in 410 days

226

East Africa region, which normally performs well in governance indicators, returns letters on average in 336 days.

Among the countries in the South of Africa, the number of days that it took to return letters to the sender was 291 on average, with South Africa leading the way.

THE RISING AFRICA MAGAZINE /// 43


Factual Data on Land “Grabs” The foreign acquisition of African lands, dubbed ‘Land Grabs’ has recently become a widely publicized contentious issue.

Article by Victoria Schorr

Tunisia

A

s an African specialist and someone who focuses particularly on business and foreign investment, I have tried to stay abreast of the issues and debates surrounding the foreign acquisition of African lands. Unfortunately, it seems there is little consistent data available and even several contradicting reports from scholars and organizations that are usually trustworthy. Moreover, there are hard-lined stances on both sides of the debate, with harsh language sometimes being exchanged, making it difficult to have a neutral perspective. So what is going on? “Land grabs” are described as cases of foreign companies, state-owned enterprises, or countries buying African lands in opaque deals without community consultation or permission. The picture of colonial officials and settlers throwing peasants off their land is often the image implied, with a strong dose of harkening back to the English closing of the commons. As any African specialist knows, there are many mitigating circumstances on the continent that would make any land buying, leasing, or re-distribution difficult. Namely, given most farming in sub-Saharan Africa is done via rotating plots as well as sometimes moving entire communities, the concept of ‘empty land’ is often tenuous.

Morocco

Algeria

Mali

Guinea-Bisssa

Sudan

Eritrea

Chad

Guinea

Sierra Leone

Egypt

Niger

Senegal Burkina Faso

Djibouti Nigeria

Ghana

Liberia Côte d'Ivoire

Benin Togo

Percent of country territory leased or sold, according to Land Portal database

Central African South Sudan Cameroon Republic Congo Gabon

Uganda Congo DR

Rwanda

Ethiopia

Below 1 %

Kenya

Tanzania Comoros Angola

Between 1 and 3% Between 5 and 10 %

Somalia

Burundi

Below 0.5 % of total territory

Namibia

Zambia

Malawi

Zimbabwe

Mozambique

Botswana

No data available

Landportal.info

Madagascar Lesotho South Africa

As well, frequently many disparate claims can be made for one piece of land – leaving aside external players – due to changes in government regimes since independence. Also, the fact that women are the ones usually engaged in farming and yet have few land rights, complicates the situation further. Finally, it is well-known that

Image from: http://kobason.wordpress.com

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Mauritania

Cape Verde

Libya

many African governments do not have sufficiently detailed land registries, nor the resources at present to update them. All this makes for a very complex situation with regards to land use versus official land ownership. What do some researchers say? Keeping all this in mind, I attended two lectures on the topic at Carleton’s Institute of African Studies. Joseph Awetori Yaro from the University of Ghana, presented three case studies of land acquisitions in Ghana. In these cases, he shows that the loss of common lands resulted in the fallowing of fields being impossible, that non-farm livelihoods were lost, firework became harder to get, outward migration increased, respect for local chiefs was degraded, and that women were most affected. He found mixed results for hiring practices and job creation but there were more inputs such as fertilizer being used. Fortunately, in the case of Ghana, there are many active NGOs and legal means that the people affected are


using to argue against these land deals. The second presentation was by Bruce H. Moore, the ex-Dircetor of the International Land Coalition. While his presentation was more applicable to Latin America, during question period he highlighted many of the same issues as Mr. Yaro with regards to Africa. During question period, however, many concerns with the ILC’s Land Portal were raised. Firstly, it was voiced that most incidences of buying land are actually leases, sometimes with various clauses about water usage, hiring of locals, providing training and extension services, etc. Mr. Moore also admitted that sometimes land leases with regards to Africa were inaccurately described as ‘land grabs’, which he felt detracted from an otherwise excellent initiative. For example, he gave a case study of a community that decided to lease a portion of its land for 15 years. The community initiated this deal and was entirely on board with the project; they saw it as a way to make money off the extra land they had and as a trial run for jobs and investment on that land. Even still, this deal is listed in the Land Portal, making it appear to be a ‘land grab’. Is China involved? Though most foreign land acquisitions originate from OECD and Middle Eastern countries, many of the deals involve other African countries, especially South Africa. In addition, China is often cited as having bought very large plots of land on the continent. In the case of China, however, there is significant detailed research and factual debate. Prof. Deborah Brautigam,

a specialist on China in Africa at American University, has written several articles about false reports of land grabs and Chinese intentions with regards to African farmlands. While many reports by the media and organizations are presented as facts, in several cases she has conducted in-depth research on these acquisitions and either found no proof at all or data being misrepresented. As a specialist on African issues, I find this very troubling because it suggests that many otherwise reliable sources are citing case studies that may not even exist. While this certainly doesn’t mean there are no foreign land acquisitions occurring – Prof. Yaro’s study clearly shows there are – it does raise several concerns about what the “facts” are. Equally worrisome, this disagreement regarding factual data could begin to resemble the scandal concerning UNAIDS’ HIV/AIDS statistics in the early and mid 2000’s. Thus, while this is not my area of special expertise, the fact that there are significant gaps and contradictions in information

concerns me greatly. The recent publication of the Handbook of Land and Water Grabs in Africa by Routledge is a welcome exception. I invite the readers of “The Rising Africa” to inform the Canadian Council on Africa of other similarly reliable publications and invite all our readers on the continent to research these land claims in detail so we can have reliable, consistent, and factual data. After all, with the political events that followed the large land acquisitions in Madagascar, the ramifications of these deals may be significant and all Africans as well as Africanists / Africanophiles should be aware of what is really going on. Victoria Schorr is an expert and consultant with more than ten years of experience regarding sub-Saharan African politics, business, economics, and development. She holds a Masters degree in African Politics from the School of Oriental and African Studies and a Bachelors degree in African Studies from McGill University.

http://greengopost.com/the-uphill-battle-against-the-global-land-grab/ Photo courtesy Leon Kaye.

THE RISING AFRICA MAGAZINE /// 45


Photo by: David Shanks, Canadian Co-operative Association.

I

Article by Rayanne Brennan n declaring 2012 the International Year of Co-operatives, United Nations General Secretary BanKi-moon praised co-operatives as a “reminder to the international community that it is possible to pursue both economic viability and social responsibility.” The co-operative movement is indeed a powerful global force for greater good. Throughout the globe, people are employing these democratically-controlled and socially-minded enterprises to work their way out of poverty and bring lasting prosperity to their members, their families and their communities. Seven per cent of the African population is affiliated with the co-operative movement. This figure is on the rise as hundreds of new co-operatives are registered every year. The growth of Africa’s co-operative movement is attributed to the expansion of Savings and Credit Co-operatives (SACCOs) which, together with agricultural co-operatives, form the largest share of the sector. In Kenya, co-operatives are estimated to employ over 300,000 workers and to generate 2 million indirect jobs.

Co-operatives, Credit Unions Changing Lives in Africa “Canada changed me,” says Evelyn Kassah in describing the knowledge she gained from a unique gender equality program, led by the Canadian Co-operative Association, that promotes women in leadership in the credit union movement. Kassah is president of the Credit Union Ladies Manager Association of Ghana and manager of the Queen of Peace Credit Union in Accra. In Ghana women are not brought up to be leaders so managers like Kassah face

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unique challenges their male peers do not. “Leadership in Ghana has always been more of a man’s domain, and therefore many women find it hard to stand up and make their voices and opinions heard.” CCA’s Women Mentorship Program brings together women credit union managers from all over the world to Canada to further their education and to build their confidence. The program comprises of intensive classroom training and a 10-day field placement job-shadowing Canadian credit union managers. Kassah, who participated in this valuable learning and networking program in 2004, returned to Ghana with information she used to better her credit union. As a result, loan delinquency decreased and relations with her board improved. Today, as a successful women manager, she is a role model to women in her community, especially to her daughter who wants to become a manager herself one day.

Engines of Growth

This is just but one of numerous examples of ways in which CCA is changing lives in Africa by helping to strengthen the continent’s co-operatives and credit unions and support leaders like Kassah. Through co-operative enterprises, Africans are pooling their resources, working together to provide needed goods and services, create jobs and opportunities, build up savings for the future, insurance against catastrophe, put their children in school, improve health, reinvest profits, improve skills and knowledge and protect the environment. And they are empowering women and girls to be full and equal members of their families and communities. This work is in part due to the ongoing work of Africa’s co-operative organizations and their international partners like the Canadian Co-operative Association (CCA).

CCA’s development mission is to establish and grow co-operatives, credit unions and community-based organizations to reduce poverty, build sustainable livelihoods and improve civil society in less developed countries. CCA’s work focuses on three key sectors: finance, agricultural development and micro, small and medium enterprises. Here are other examples that illustrate the power of belonging to co-operatives for its members and their local economies, excerpted from CCA’s International Development Review for 2011-12.

Turning Poverty into Prosperity

In Rwanda, women’s membership in a rice milling and marketing co-operative jumped from 42 to 463 members in three years. The co-op’s growth has yielded many benefits including the increased respect and status of women in their families and communities and their ability to build a better future for their daughters and sons. Families in 350 towns and villages in Ghana have a safe place to save and have access to credit through their credit unions. Research shows that members feel more financially secure than non-credit union members and are more likely to send their children to school. In Sierra Leone, traders who have never had access to formal financial services are expanding their businesses and enhancing skills with small loans from their credit unions. 14 women credit union managers from Asia and Africa enjoyed hands-on learning in Canadian credit unions through the Credit Union Women’s Mentorship Program, which also saw 34 Canadian credit union professionals (and volunteers) coach credit union staff in Ghana, Malawi, Uganda and Mongolia. Rayanne Brennan is managing editor of two magazines - The Atlantic Co-operator and PrimeTime. In addition, she is secretary of the Co-operative Enterprise Council of New Brunswick.


New Member

Nous renforçons notre position de chef de file en Afrique Depuis le 1er février 2013, la fusion entre Fasken Martineau et Bell Dewar de Johannesburg crée l’un des plus importants cabinets d’avocats exerçant en Afrique. Fasken Martineau devient ainsi le cabinet d’avocats canadien dont la présence internationale est la plus importante.

Expanding our Leadership in Africa Since February 1, 2013, Fasken Martineau’s merger with Bell Dewar in Johannesburg, creates one of the largest law firms operating in Africa, giving Fasken Martineau the largest international footprint of any Canadian-based law firm.

VANCOUVER

CALGARY

TORONTO

OTTAWA

MONTRÉAL

QUÉBEC / QUÉBEC CITY

LONDRES / LONDON

PARIS

JOHANNESBURG


New Member

D

undee Capital Markets is a fullservice Canadian investment dealer with offices in Toronto, Montreal, Vancouver, Calgary and London and whose principal businesses include investment banking, institutional sales and trading, private client advisory, and investment management. Our capital markets group focuses primarily on mining, energy, real estate, fertilizer, agriculture and forestry and aims to provide innovative research, trading strategies and opportunities for our institutional and retail clients.

Investment Banking Our Investment Banking group makes sector strength the basis of good client relationships. We provide research-based, insight-driven financing and strategic expertise to selected companies within our core sectors throughout the life cycle of those organizations. Our commitment is to

Toronto

(416) 350-3300

provide innovative ideas to align with our clients’ situations and objectives. We combine sector-based technical and financial expertise that support our clients’ management team and the board of directors to develop and implement decisions on a variety of key issues – how and when to raise capital, the optimal way to fund projects through debt and equity financing, how to be successful in mergers, acquisitions and divestitures, and how and when to best communicate a company’s value to key audiences and markets.

Research

The competitive advantage that our research team contributes to client’s investment performance is depth of their experience in the sectors they follow. Many of our analysts are seasoned professionals who have hand-on experience in the complex sectors of mining, energy, real estate and fertilizer, agriculture and forestry

Montreal

(514) 396-0333

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Vancouver

(604) 647-2888

we work in. This is critical. Clients know they can trust what our analysts are talking and writing about. The research team helps identify new opportunities that add value and meet clients’ unique objectives. They do this through a rigorous and disciplined research and analytical process. Starting with independent and insightful analysis of a company’s management, fundamentals and strategic direction, our analysts use their industry knowledge to evaluate the impact of sector trends, emerging influences and market dynamics to identify favourable investment opportunities. For our clients this means unique and valuable combination of independent perspective, industry knowledge and actionable investment ideas that help them make well-informed investment decisions.

Calgary

(403) 232-0900

London

+44 20 7499 4455


Member News

Hydroelectric Dam on The Kagera River

I

n 2006, SNC-Lavalin was mandated by the World Bank to assess the feasibility of the Rusumo Falls Hydroelectric and Multipurpose Project in Rwanda and Tanzania and prepare a complete report about the environmental impacts and social development of the project. In 2012, SNC-Lavalin’s team of environmental and social experts in Montréal worked on the required documentation to facilitate informed and transparent decisions by the neighboring countries with water rights, donors and other investors about whether to implement the project, which would produce 60 to 80 MW under a head of 35 meters. The annual energy production would be 444 GWH and the power would be shared equally by Burundi, Rwanda, and northwest Tanzania. The Rusumo Falls Hydroelectric and Multipurpose Project entails the construction of a dam on the Kagera River. The Project includes a concrete dam and radial gated spillway (1,200 m³/s) and a 60MW power station on the Kagera River, which forms the international border between Rwanda and Tanzania. The reservoir will inundate areas around Lake Rweru in Rwanda and Burundi. The construction cost of this project, financed by the World Bank, is $306,000,000, of which $5,510,000 is the SNC-Lavalin portion. The feasibility study encompassed four aspects and included engineering studies and design, and an environmental and social impact assessment: a) Technical studies and design proposing three options of hydroelectric development projects that maximize the Project

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from technical, economic and environmental points of view, and carrying out a feasibility study and detailed design of the option chosen for the multi-purpose hydroelectric and regional project. b) Resettlement Action Plan following the World Bank Operational Policy for involuntary resettlement (OP 4.12.). As the number of Project Affected Persons in the project is estimated to be at 50,000 in the three countries (Burundi, Rwanda and Tanzania), a resettlement action plan was proposed in order to support people displaced due to the construction of the power plant and the reservoir. c) Environmental and Social Impact Assessment (ESIA): to determine the project’s social and environmental impacts and establish an environmental management plan detailing the mitigation or compensation measures proposed, including the costs, schedule and responsibilities pertaining to the implementation of these measures, and the detailed planning and design follow-up process of the proposed project. d) Regional Development: to formulate a plan for the areas to be prioritized, with a range of planned and quantified activities aimed at enhancing development and alleviating poverty in order to protect the welfare of communities surrounding the Rusumo Falls’ hydroelectric installations during construction and operation. The plan deals with issues pertaining to the sound management of resources in order to ensure water is available and to reducing risks to the hydroelectric project and minimizing adverse social and public health impacts (e.g., HIV/AIDS and malaria).


Member News

I

n Canada, colleges are the advanced skills educators of choice. Aligned with the needs of employers, and operating on the leading edge of skills identification, economic trends, and market shifts, colleges solicit business and industry input into curriculum development through Program Advisory Committees. The Association of Canadian Community Colleges (ACCC), the national and international voice of Canada’s 130 publicly-funded colleges and institutes, is exporting this Canadian approach to skills development to Africa through development cooperation programs funded by the Canadian International Development Agency (CIDA) and directly with Canadian and international companies operating in Africa. Education for Employment (EFE), a CIDA-funded program, supports educational reform in Mozambique, Senegal and Tanzania and helps build African capacity in labour market analysis, industry liaison, demand-driven curriculum development, teacher training, and responsive institutional leadership. EFE is changing HOW educational institutions develop and deliver their programs – going TO industry to determine their needs and ENGAGING employers in program design and delivery. Working in key growth sectors such as mining, tourism, construction, public works and food processing, the EFE contributes to national growth and poverty reduction strategies and develops training programs that prepare learners for employment and self-employment. Nigeria, among other countries, is looking to develop similar programs to

transform their skills development programs. Building on the success of the EFE, ACCC is meeting with Canadian and international companies operating in Africa to help them meet their needs for skilled employees, by strengthening local capacity to train for the labour market – a sustainable strategy for community engagement. For more information on how ACCC and Canada’s colleges and institutes can support your skills training needs in Africa, please contact Marie-Josée Fortin, Director, International Partnerships, mjfortin@accc.ca.

D

am International Development (DDI Inc.) is an since 2008. The DDI Inc. office for the Great Lakes and the Eastinvestment society committed to socioeconomically African Community region is situated in Bujumbura, Burundi’s Dam International Inc. (DDI driven Développement projects aimed at encouraging sustainable capital. Inc.) est une société investissant dans des development and propelling developing countries. DDI Inc. wishes to become a leader in residential and commercial socioéconomiques en lien avecconstruction le développement durable l'objectif qu'elle Its stake projets taking is operated through key partnerships in high with lesser ecological footprint,et in local construction potential countries. The enterprise wishes to participate in a material production which is Fair Trade certified, in Fair Trade different fashion to the est economical development those regions certified coffeede production and export and in consulting on IT poursuit la propulsion deof pays africains en voie développement. by betting on the western quality of work and management, management and integration. Projects in these areas of expertise adapted to the African reality. are currently ongoing and rely on human networks deeply anchored DDI Inc. has been in business in Canada since August 2006 and is in East Africa, which makes DDI Inc. a go-to player for Canadian registered in Burundi, its main platform on the African continent, enterprises wishing to establish themselves in the region.

Ses prises de participation se font par le biais de partenariats de proximité dans des pays

50 /// WWW.CCAFRICA.CA à fort potentiel.

L’entreprise désire participer d’une façon différente au développement


Member News

S

TRATEGEUM joined the Canadian Council on Africa after participating in a symposium on African financial institutions which was recommended by many of our business partners. In addition to becoming a member of this platform supporting the Canadian private sector in Africa, our Managing Partner Simon Lafrance is now sitting on the organisationâ&#x20AC;&#x2122;s Board. STRATEGEUM specializes in analysis and strategic consulting, campaign organizing, management and operational planning for private companies, governments, organizations with large membership and/or in favour of causes, elected officials and candidates. The highly precise work of STRATEGEUM is a product of the multi-segmented expertise of our managing team. Our approach is entirely adapted to the clientsâ&#x20AC;&#x2122; needs and means. We develop durable partnerships in a climate of trust. STRATEGEUM is in business on the African continent, where the firm primarily plays an advising role with Canadian and African stakeholders from various sectors who wish to optimally develop and position themselves. Our first partnerships in Gabon and Burundi allowed us to set foot on the continent, but we also keep an eye on the most ambitious challenges across a rising Africa in order to bring tailored solutions

BBI

to clients who want to concretely improve their results. STRATEGEUM knows how to bring its strategic expertise, developed in the course of all types of campaigns involving cutting edge techniques and quick reflexes, to partners working in a range of fields as broad as construction, electoral campaigning, coffee, higher education, mining, energy, networking missions, transportation, agriculture, financing, etc. The strength of our team is to understand the problems, conceive solutions and find pertinent human and technical resources to apply them.

to contribute to ecoliving solutions in West Africa! Established in 1995, the Black Business Initiative is the premier business development initiative in Canada that is dedicated to fostering the growth and the strength of a Black presence within the mainstream business community and committed to the development of sustainable communities in both rural and urban areas. Our commitment is not limited to business advocacy but we also strive to support business starts and growths. Through win-win sustainable partnerships with the public and private sectors, over the past 17 years we have helped hundreds of grassroots organisations and entrepreneurs reach their goals. Our most recent initiative was the formation of a venture between one of our portfolio companies, a leading international renewable energy developer

located in Ontario, and a Texas-based developer of eco-living solutions to deliver low-cost, environmentally-sustainable solutions that feature local workforce training and job creation in West Africa. Our senior management has built, over the years, a solid reputation in leading multilateral community development projects which involve engineering synergistic links between multinational organisations and communitybased organisations in the hosting countries in Africa. Our team is comprised of highly qualified MBAs, Chartered Accountants and Financial Analysts (CFA) whose mission is to strengthen the diversity, productivity and competitiveness of our business landscape. We have a diverse and multi-talented staff team with members from Canada and four African Countries. This affords us a unique and in-depth appreciation of local perspectives which we blend with global successes to customize local solutions.

THE RISING AFRICA MAGAZINE /// 51


Mission to the African Development Bank (Tunis)

From January 16th to 19th 2013, the Canadian Council on Africa and a delegation of over 15 Canadian companies will be received at the Headquarters of the African Development Bank for our annual mission in Tunisia. The mission is proposed to Canadian

companies, consultants, investors, financial institutions as well as education and training institutions. It aims to increase the business and collaboration with the African Development Bank. This mission is organized in collaboration with the Canadian Embassy in Tunis and the

Canadian Executive Director Office’s at AfDB. The mission will provide the opportunity to learn more about the mechanisms of funding, (especially the mechanism to fund your infrastructure projects), the priority countries and sectors on the African continent, the criteria of eligibility for the beneficiary countries and the eligibility for businesses and consultants who wish to work on the projects of those two institutions. Individual meetings focused on sectors of activity will be also on the program. For more information please contact our Project Manager at (514) 451-9232 or by sending her an email to leonie.perron@ ccafrica.ca.

Seminar Open the Doors to African Opportunities

The Canadian Council for Africa and Carrefour Québec International invite you to a seminar to explore business opportunities in Africa. Organized in collaboration with the Department of

International Relations, La Francophonie and Foreign Trade (MRI-FCE), this seminar aims to develop necessary tools and knowledge required for leaders and managers in Quebec to develop business

in Africa and thus contribute to African sustainable development. The seminar will help you to optimize your own practices on the African continent, acquire new tools to help you trade with Africa, establish a better overview of the characteristics of each of the sub-regions, update your knowledge on the specifics of Africa’s way of business, and adequately assess and overcome the risks with appropriate tools. The seminar takes place on January 23 in Quebec, on February 27 in Laval and on March 26 in Montreal. Please contact Leonie Perron for registration by leonie.perron@ccafrica.ca.

Economic Trade Mission to Rwanda

The Canadian Council on Africa is proud to announce a mission to Kigali, Rwanda, from 10 to 13 February 2013. Organized in collaboration with the Rwandan Development Board, the High Commission of Rwanda to Canada and the Department

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of International Relations, La Francophonie and Foreign Trade of Quebec (MRIFCE), this mission represents a unique chance to discover the many business opportunities in a country with an economic growth in many areas including infrastructure,

education and technical and vocational training, tourism, and ICT. During this mission, you will be able to familiarize yourself with the country’s business culture and meet potential business partners. This mission is for all those who are interested in business opportunities offered by Rwanda to the Quebec and Canadian companies, consultants, investors and financial institutions, as well as educational institutions and training. During the many activities planned for this economic mission to Rwanda, you will have the opportunity to attend various seminars as well as official meetings and interact with key decision makers and economic operators.


AFRICA’S LEADING PRESS AND COMMUNICATION GROUP

st

■ JEUNE AFRIQUE Africa’s leading international news weekly since 1960 (Source: DSH OJD 2010)

■ THE AFRICA REPORT The best English pan African business publication (DABRA 2006 & 2007)

■ JEUNEAFRIQUE.COM The leading pan African news website (Source: Alexa.com)

■ THEAFRICAREPORT.COM The top-ranked pan African media website (Source: Alexa.com) TUNISIE RACHED GHANNOUCHI, L’INTERVIEW VÉRITÉ É

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HEBDOMADAIRE HEBDOM OMADAI OM AIRE RE INT NTER ERNA ER NATI INDÉPENDANT • 52e année • No 2692-2693 • du 12 au 25 août 2012 COINTERNATIONAL Afrique

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chmo a crachtiea Spécial Spéc écial 24 pages

CHINEAFRIQUE AU-DELÀ DES CLICHÉS

LIBYE ABDELJALIL, HÉROS MALGRÉ LUI

N EN UM VE ÉR NT E DEO D UX OU SE BLE MAI NE S

NIGERIA 10 characters you’re sure to meet

SOUTH AFRICA Zuma’s struggle to win votes in Eastern Cape

GAS East Africa’s race to get ready

jeuneafrique.com w w w.t hea f r ic a repo r t .c om

ENQUÊTE (HOMMES) POLITIQUES CHERCHENT (FEMMES) JOURNALISTES

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L’Afrique 25 projets et idées pour changer le continent

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SHALOM Africa Israel’s second coming

H hi How highh di diplomacy l andd oligarchs li h opened a new axis with Africa ÉDITION GÉNÉRALE

INTERNATIONAL EDITION

France 6 € • Algérie 350 DA • Allemagne 8 € • Autriche 8 € • Belgique 6 € • Canada 11,90 $ CAN • Danemark 60 DKK • DOM 6 € Espagne 7,20 € •

Algeria 550 DA • Angola 600 Kwanza • Austria 4.90 € • Belgium 4.90 € • Canada 6.95 CAN$ • Denmark 60 DK • Ethiopia 75 Birr • France 4.90 € Germany 4.90 € • Ghana 5 GH¢ • Italy 4.90 € • Kenya 350 shillings • Liberia $LD 300 • Morocco 50 DH • Netherlands 4.90 € • Nigeria 600 naira Norway 60 NK • Portugal 4.90 € • Sierra Leone LE 9,000 • South Africa 30 rand (tax incl.) • Spain 4.90 € • Switzerland 9.90 FS • Tanzania 6,500 shillings Tunisia 8 DT • Uganda 9,000 shillings • UK £ 4.50 • United States US$ 6.95 • Zimbabwe US$ 4 • CFA Countries 3,500 F CFA

Éthiopie 95 birrs • Finlande 8 € • Grèce 8 € • Italie 7,20 € • Maroc 40 DH • Mauritanie 2000 MRO • Norvège 70 NK • Pays-Bas 7,20 € Portugal cont. 7,20 € • RD Congo 11 $ US • Royaume-Uni 6 £ • Suisse 11,80 FS • Tunisie 4 DT • USA 13 $ US • Zone CFA 3200 F CFA • ISSN 1950-1285

Jeune Afrique, weekly 800,000 readers per week

JeuneAfrique.com and TheAfricaReport.com More than 12 million pageviews per month

GROUPE JEUNE AFRIQUE

The Africa Report, monthly 450,000 readers per month

THE RISING AFRICA MAGAZINE /// 00


South Africa Mining Indaba

“Investing in African Mining Indaba” is an annual professional conference dedicated to the capitalisation and development of mining interests in Africa. This Cape Town based conference is the world’s largest mining investment conference and the largest mining event in Africa.

For 19 years, Investing in African Mining Indaba along with its partners in Africa have channelled billions of dollars of foreign investment into the mining value chain. Mining Indaba is the world’s largest gathering of mining’s most influential stakeholders and decision-makers vested in

African mining. 2012 was a record breaking year, with more than 7,000 individuals representing more than 1,500 international companies from 100 countries and approximately 45 African and non-African government delegations. This is where the world connects with African mining. By attending Investing in African Mining Indaba on February 4-7, you will join an international, powerful group of industry professionals that make Cape Town, South Africa their preferred destination to conduct important business and make the vital relationships to sustain their investment interests. Please contact Chris Kianza to learn about this opportunity. chris.kianza@ccafrica.ca

Africa Rising 2nd Edition

For this edition, CCAfrica has decided to innovate by addressing the topic of infrastructure as an engine for African development. The infrastructure sector is a key aspect of economic development in Africa. With the acceleration of economic growth in the continent, there are new

opportunities emerging for Canadian and Quebec companies. This conference will bring together a number of Canadian and African leaders from the private and public sector, including government officials, heads of large Canadian and Quebec corporations in the

infrastructure sector, financial institutions and international organizations that have an interest in infrastructure as an engine for African development. We encourage you to attend this important conference not only to explore new the opportunities emerging from the infrastructure sector but also to expand your professional network. The Canadian Council on Africa is the only pan-Canadian organization whose mission is to facilitate and promote investment and sustainable trade between Canadian and African public and private sectors. Our goal is to continue to be the leader among Canadian firms engaged in the economic development of a modern and globally competitive Africa by raising awareness among different stakeholders.

Economic Mission to Nigeria

The Deputy High Commission of Canada in Lagos and the Canadian Council on Africa are proud to announce a mission to Nigeria, to take place during the 2013

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Nigerian Oil and Gas Exhibition (NOG) in Abuja, Nigeria in February 18 - 21, 2013. In addition to taking part in an exhibition of the show, delegates can use this opportunity

to explore other sectors of interest to them. We are particularly hopeful to encourage companies in the vocational or specialized training, environmental services or remediation industry (soil and water), the infrastructure and power sectors to join us. This mission is a great opportunity to promote your enterprise or institution as well as expertise at one of the largest energy gatherings in Africa! At this venue, you will get to better understand the business culture of this country and to meet potential business partners from both Nigeria and other African countries.


We take the lead, and We deliver

Weâ&#x20AC;&#x2122;re all about finding ingenious solutions to modern-day problems. With some of the most iconic aircraft on the planet and a groundbreaking train portfolio, we have always evolved and will continue to evolve transportation at its core.

THE RISING AFRICA MAGAZINE /// 00


CNIC: Canada-Nigeria Investment Conference

The Canadian Council on Africa, in partnership with the Nigeria High Commission and the Department of Foreign Affairs and International Trade is proud to announce the Canada-Nigeria Investment Conference 2013 with the theme Canada-Nigeria Synergy Vision 20:2020. The highly anticipated conference is

designed in line with the vision 20:2020 Economic Transformation Agenda of President Goodluck Ebele Jonathan, GCFR, and it will be held in Toronto on May 2-4, 2013. Expected to bring together more than 400 participants from public and private sectors, the two-day conference is privileged to have the keynote speeches and opening remarks

by Arc. Namadi Sambo, Vice President of the Federal Republic of Nigeria, and by The Honourable John Baird, Minister of Foreign Affairs, Canada. The discussion topics include FDI as the backbone for Vision 20:2020, regulatory FDI framework, transportation, rails and aviation, infrastructure, agriculture, tourism, education and training, mobile technology, oil and gas, and urban development. In addition, funding models will be discussed; success stories and practical tips will be shared. Please do not miss this excellent opportunity to learn about business and partnership opportunities in this rising sub-Saharan giant. Please contact Chris Kianza to learn about this opportunity. chris.kianza@ccafrica.ca

Keynote speaker at the CCAfrica’s Energy Forum in June, Mr. Wale Tinubu, Group CEO, Oando PLC “Natural resources help to underpin the economy, but what drives the growth is the consumption. What counts is the emergence of middle class, provision of goods and services. Good governance and transparent policies are enabling this process.” “Nigerian private sector are taking their rightful role. This allows local concerns to come forward and allows us to do what government cannot do.” “What are the current needs in Nigeria? FDI in the combination with sustainable growth is needed so that capital gets recycled back to the country and that it is spent on country. It improves transparency and legal systems. Although FDI is commercial in nature it actually ensures that business environment is improving while attracting more investment – most of FDI is in oil and gas but there are much more sectors which need development – transportation and agriculture, for example. Canada is experienced in this area and is welcomed to Nigeria.”

African Women Enterprise & Investment

With the support of the African Women Diplomatic Forum in Ottawa, the Canadian Council on Africa together with The African Diplomatic Corps accredited to Canada are organising

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a conference titled “Role of African Women in African economic growth”. The conference is scheduled to take place on May 27-30, 2012 in Toronto coinciding with the annual celebration of Africa Day.

The aim of the conference is to promote the great potential of African women entrepreneurs bring to “The Rising Africa” and to increase, expand and strengthen commercial ties between African countries and Canada. CCAfrica is pleased to help in expanding the network between Canadian and African entrepreneurs, to facilitate entrepreneurs’ access to Canadian market, to integrate African businesswomen to the global economy, and to support them with mentoring activities. To show your appreciation to African businesswomen, register your participation soon. Please contact Chris Kianza to learn about this opportunity. chris.kianza@ccafrica.ca


Resource Guide for African Expertise in Canada

CCAfrica frique years

10 ans

The Canadian Council on Africa has composed a Resource Guide for your convenience. Feel free to contact those companies, enterprises and organisations for your Africa-related business needs. If you would like to profile your company in our bilingual Resource Guide for African Expertise in Canada, feel free to send your 80-word-profile to CCAfrica. This is free for CCAfrica members! For non-member-fees please contact Chris Kianza.

Canadian Council on Africa Conseil Canadien pour l’Afrique

chris.kianza@ccafrica.ca.

The Collège Communautaire of Nouveau-Brunswick is a Canadian Francophone postsecondary education institution (Bac+2). It offers over 90 programs in professional and technical training divided into sixteen groups (www.ccnb.nb.ca). The CCNB is active in the international scene and includes providing support services to analysis sector according to the skills approach (CPA), institutional strengthening, development of training programs, technical assessment organizational needs and developing partnerships in applied research.

Éducation internationale is a not-for-profit cooperative which belongs to the majority of Quebec’s Francophone and Anglophone school boards. It also includes several organizations, institutions and public and private colleges. The activities of Éducation internationale are organized into three departments; international mobility, international development and international recruitment. Éducation internationale makes available on the international stage more than 150 years of experience, excellence and ongoing innovations of education systems.

www.ccnb.nb.ca

www.education-internationale.com

Jolicoeur Lacasse Avocats knows that to be established and to do business in Africa represents an extraordinary challenge and, in order to achieve such an endeavour, our legal services will be precious to you that they be provided in Québec, in Canada or in Africa. When surrounded by partners that know the legal and juridical culture, you significantly augment your chances of success. Our team will ensure that it puts itself forward as the link, as well as play the role of interface, between you and your partners.

The Panafrican Group is a leading full-service provider of construction and mining equipment solutions in 5 countries: Kenya, Tanzania, Ghana, Nigeria and Sierra Leone. Employing 300 people, it is the exclusive distributor of Komatsu equipment, the world’s second largest manufacturers of Construction, Mining, and Utility Equipment globally, with a reputation for quality and reliability. Panafrican also distributes Sakai compaction equipment, Pirtek fluid transfer solutions and Hensley GET.

www.jolicoeurlacasse.com

www.panafricangroup.com

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Resource Guide for African Expertise in Canada Kestrel Capital is the leading stockbroker on the Nairobi Stock Exchange, and one of the largest traders of fixed-income in Kenya. Its focus on providing excellent research and infrastructure to its clients has resulted in a greater than 50% market share of foreign and local institutional investors. Kestrel has also received several awards as the “Best Stockbroker in Kenya”. Kestrel also is recognized as a leading corporate finance advisory, having advised on some of Kenya’s most prominent M&A advisory mandates and capital raisings.

MEDA – Mennonite Economic Development Associates – is an international NGO founded in 1953 that provides technical expertise in subsector and value chain analysis, market linkages, financial services, health systems, and financial institution capacity development. MEDA’s expertise cuts across sectors, working with vulnerable and underserved populations like youth, low-income women, and rural populations. Through innovative international development, MEDA provides a future for families and whole communities, working to enrich, encourage and assist individuals and their families in improving their standard of living.

www.kestrelcapital.com

www.meda.org

Sarona Asset Management Inc. “Sarona is a private equity firm, investing growth capital in companies and private equity funds in frontier and emerging markets around the world. Our particular focus is the small to mid-market companies that meet the growing needs of the rising middle class in those markets. Our goal is to achieve superior returns by creating world class companies employing highly progressive business strategies, and operating to the highest standards of business, ethical, social and environmental excellence.

Contacts Monde exists since 1998 and is a result of the collaboration of two international experts, Isabelle Limoges and Karl Miville-de Chêne, who are working in the international field since for more than 25 years. Our team includes three full-time people as well as various associates, according to the present records. Our services: Consultation in marketing and market development, training in trade and international processes, support to export promotion organisations and recruitment of specialized personnel in international trade. Our customers : companies and export promotion organizations.

Sarona has developed a wealth of experience and knowledge through 60 years of private investments in frontier markets.”

www.saronafund.com

www.contactsmonde.com

Kenya Fluorspar Company is one of the largest global producers of acidgrade fluorspar, which is utilised in the production of Hydrofluoric Acid and Aluminum Fluoride. Located in Kenya’s Kerio Valley, the company has over 350 employees and 270 contractors. KFC is one of Kenya’s largest mines and one of its largest earners of foreign exchange. KFC maintains a strong relationship with its local community and provides numerous services including housing, medical facilities, free water supply, schools, sports and leisure facilities.

AnyWay Solid Environmental Solutions Ltd. is a global leader in providing soil stabilization products to the infrastructure and development sectors. Our products are based on a unique technology patented worldwide.AnyWay is a subsidiary of The Metrontario Group of companies, an established real estate developer and entrepreneurial investor active since 1946. AnyWay’s commitment is to provide comprehensive, innovative, cost-effective solutions through soil stabilization. Our products have been successfully implemented in road, infrastructure and low cost housing projects using both mechanized and labourintensive means.

www.kenyafluorspar.com

www.anywaysolutions.com THE RISING AFRICA MAGAZINE /// 59


Resource Guide for African Expertise in Canada ACCC, the national membership organization serving Canada’s 130 public colleges, cégeps and institutes, works with education and industry stakeholders in Tanzania, Mozambique, Sénégal, Nigeria, among others, to develop training programs that prepare learners for employment and self-employment. Building on the strengths of its members, Canada’s providers of advanced skills, and supported by CIDA, ACCC programs help build African capacity in labour market analysis, industry liaison, demand-driven curriculum development, teacher training, and responsive institutional leadership.

PGF is a Management Consulting Firm working in Canada and internationally. Our approach is entirely client centered. We help guide our client toward success and in meeting its through potential. For this, we strive to use international best practices in terms of:

www.accc.ca

www.pgf.ca

CANAC Railway Services Inc. is a leading edge single source multi-disciplinary provider of end-toend integrated railroad solutions worldwide. We provide customized, distinctive and sustainable solutions for freight and passenger railroads including commuter and industrial railway operators, investors and governments throughout North America and Internationally.

CPCS is a global advisory firm headquartered in Canada providing advisory services to public and private sector clients in emerging economies around the world. With offices and representation in Nairobi, Dar es Salaam, Kampala, Abuja, Lagos and Addis Ababa, CPCS continues to build a strong track record of turning ideas into plans and plans into successful projects. We work to unlock Africa’s productive capacity through the development of strategic infrastructure in the transport, power and urban development sectors.

www.canac.com

www.cpcstrans.com

Mercy Ships serving the needs of Africans since 1990, we could be a partner for your CSR projects. Mercy Ships uses hospital ships and ground-based teams to provide free health care to those who do not have access in developing countries. Founded in 1978, Mercy Ships has so far worked in more than 70 countries providing free services worth more than $1 billion to over 2.35 million people.

S T R AT E G E U M specializes in analysis and strategic consulting, campaign organizing, management and operational planning for private companies, governments, organizations with large membership and/or in favor of causes, elected officials and candidates. STRATEGEUM knows how to bring its strategic expertise, developed in the course of all types of campaigns involving cutting edge techniques and quick reflexes, to partners working in a range of fields as broad as construction, electoral campaigning, coffee, higher education, mining, energy, networking missions, transportation, agriculture, financing, etc.

www.mercyships.ca

www.strategeum.com

For more information, please contact Marie-Josée Fortin, Director of Partnership Programs at the ACCC (mjfortin@accc.ca) and Vice-chair of the Board of Directors of the CCA.

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• Strategic and Operational planning • Organisational transformation and Capacity Building • Leadership Development • Executive Coaching • 360-degree Assessments

• Organizational Diagnostics • Change Management • Program evaluations using Results-based management • Process Design and Facilitation • Feasibility Studies


Resource Guide for African Expertise in Canada With a focus on commercial regulation, extractive industries and international trade, a presence in Canada and Nigeria, and know-how regarding Africa, AFOLABI LAW is your legal services provider of choice in undertaking business in Africa. Dealing with concerns of varying size and complexity, and engaging matters as diverse as oil and gas licensing, contractual arrangements, corporate social responsibility, customs classification, and fairness in government procurement, AFOLABI provides top quality legal solutions steeped in an understanding of the legal imperatives and bureaucratic environments of commercial regulation.

SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. Founded in 1911, SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently working in some 100 countries.

www.afolabilaw.com

www.snclavalin.com

With approximately 600 highly qualified lawyers located in Vancouver, Calgary, Toronto, Montreal, Quebec City and London (UK), McCarthy Tetrault has received international recognition and established its position as a leading law firm in Canada by understanding clientsâ&#x20AC;&#x2122; business and legal needs and developing the right solutions. Nationally and globally, we represent clients in many industries and have international experience in a wide variety of transactions and other diversified assignments. Our practice frequently takes us across borders, notably in Africa. Our firm has endorsed an Africa Initiative.

CESO (Canadian Executive Service Organization) is a leading Canadian volunteerbased development organization. Founded in 1967, we harness the expertise of leading Canadian executives and professionals to work in partnership with small and mediumsized enterprises, trade associations, government institutions, microfinance institutions, and civil society. Our volunteer advisors have completed thousands of assignments in almost 30 different countries throughout Africa, providing advisory services, training and mentoring ranging from single short-term projects to longer-term multi-faceted economic, governance and/or community development programs.

www.mccarthy.ca

www.ceso-saco.com

Aviation Zenith Inc. exists since the year 2000 for any kind of project in Africa. Our mission has the full support of aeronautical products. Sales of Engines and accessories, spare parts, propeller and general revision, Pratt & Whitney turbine, rotables and consumables, Aircraft sales. Technical support and on-site technical support. Our mission is to meet all the needs of our customers with the least delay without compromising quality. We have a commercial department mastering the rules of international aeronautics trade.

AECOM is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the worldâ&#x20AC;&#x2122;s built, natural and social environments. A Fortune 500 company, AECOM serves clients in more than 130 countries.

www.aviationzenith.com

www.aecom.com THE RISING AFRICA MAGAZINE /// 61


Resource Guide for African Expertise in Canada Export Development Canada is Canada’s export credit agency, offering financial and risk management solutions to help Canadian businesses expand into the international market. Our job is to support and develop Canada’s export trade by helping Canadian companies respond to international business opportunities. We provide insurance and financial services, bonding products and small business solutions to Canadian exporters and investors and their international buyers. We support Canadian direct investment abroad. We work in cooperation with other financial institutions and through collaboration with the government of Canada.

For over 42 years Aquaculture Consulting Service Inc. has been involved in aquaculture in the Americas, Asia, Europe and Africa. by developing master plans, designing and operating varied aquaculture site: salmon, tilapia, shrimp, etc..

www.edc.ca

aquaculture.asc@sympatico.ca

Lucid Africa Consulting Inc. is an Africa-focused advisory firm that provides customized, in-depth research and analysis on country economics, political risk, industries, and value chains. The CEO, David Shiferaw, has consulted for a wide array of institutions including UNECA’s Africa Trade Policy Centre, the World Bank, and Eurasia Group. His recent consultancies include analytical work on Ethiopia, Kenya, Ghana, Mali, Congo-Brazzaville, Madagascar and Angola.

Visas. Legalization. Translation. Global Visa Services assists business travellers, travel agencies, public employees, diplomats, international aid organisations, tourists and students with current visa information as well as instructions and application documents prior to their travels. We offer comprehensive service covering everything from information and representation for visas to legalization and certification of documents. Our services will be offered to CCAfrica members at special reduced rates.

www.lafrica.ca

www.globalvisaservices.ca

Canadian Commercial Corporation is the international contracting and procurement agency of the Government of Canada. CCC leverages its international contracting expertise to open complex government procurement markets for Canadian exporters. CCC increases trade by helping governments in Africa and around the world access Canadian products and expertise through the negotiation and execution of bilateral procurement arrangements. In 201112, CCC signed $1.8 billion in export contracts with governments around the world.

As a global, employeeowned organisation with over 50 years of experience, Golder Associates is driven by its purpose to “engineer earth’s development” while “preserving earth’s integrity.” From more than 180 offices worldwide, including Africa, our over 8000 employees deliver solutions that help clients achieve their sustainable development goals by providing a wide range of independent consulting, design and construction services in our specialist areas of earth, environment and energy.

www.ccc.ca

www.golder.com.

Lucid Africa Consulting Inc

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ASC Inc. has operated in Canada since 30 years two major Fish Farms: a Fish processing plant (HACCP) and a Fishfeed distribution Company, combining proven expertise in consultation with the realism of commercial aquaculture production.


CCAfrica Celebrated 10 years and Hosted The Canadian Minister of Trade at its Canada-Africa Symposium

T

he Canada-Africa symposium, “Looking Forward, The Next Decade”, on October 16, 2012 in honour of our 10th anniversary was a great success. How do we evaluate this, you may ask. First of all, the house was full, if we can call The Fairmont Château Laurier “a house”. We had the privilege of hosting 250 people in one of the most elegant rooms in Ottawa, the Laurier room for our Symposium; and close to 300 people in the Ballroom for the Gala. Secondly, as a non-governmental organization, we equally measure our success based on whether the event paid for itself. Hereby we thank all the sponsors and guests who purchased tickets, and made it possible for the interesting, open and varied opinions given on African opportunities and challenges in development being shared. As you see on the next pages, we had an excellent mix of interesting speakers. Thirdly, the Canadian Council on Africa was very privileged to have the Canadian minister of International Trade and for the Asia-Pacific Gateway, The Honourable Ed Fast attending our event and giving an eloquent speech about the need to increase trade with African countries. “Deeper trade and investment ties with Africa a key priority”, Minister Fast said during his speech. Minister Fast also announced that he will be leading a trade mission of Canadian companies from the infrastructure and extractive sectors to Ghana and Nigeria in the new year. These minister-led trade missions will help to open doors for Canadian companies wishing to explore new markets and expand their activities on the continent. The Minister’s participation raised the profile of Africa in Canadian media as well as the profile of CCAfrica. For the Gala portion, CCAfrica was pleased to host Senator Ben Ndi Obi of Nigeria, and a special advisor to the president of Nigeria on inter-party affairs. His keynote address focused on

the continent’s “transformation’s inherent tendency to soak up the dysfunctionalisms associated with Africa’s journey towards economic resilience”. Much of his speech analysed African leadership but also stressed the need for sustainable development achievements. The Senator told the more than 300 guests of CCAfrica that with a help of “committed friends such as the Canadian Council on Africa”, African countries must turn to “manufacturing, and value added economy”.

The Canadian Council on Africa cannot agree more.

In addition, our anniversary symposium coincided with Prime Minister Stephen Harper’s official visit to Senegal from October 11th to 12th, 2012, and to Kinshasa in the Democratic Republic of Congo where he took part in the 14th Summit of la Francophonie, between October 13th and 14th, 2012. This meant that Africa remained in the news for couple of weeks and as an organisation which promotes African economic development, CCAfrica could not have been more pleased. This combination of our successful event and the lucky occasion of good timing led our CCAfrica President and CEO Mr. Lucien Bradet to give several interviews during mid-October. Mr. Bradet estimates he gave at least 15 interviews to Canadian newspapers, radio stations and TV stations advocating for a more active Canadian role in Africa’s economic development. “It was as if we had an African week in Canada,” recalls Paul Hitschfeld, the Chair of the Ottawa-based Africa Study Group. “Many positive messages about Africa were shared,” he told The Rising Africa magazine.

THE RISING AFRICA MAGAZINE /// 63


“Eleven fastest growing economies in the world are countries in Africa. We find it difficult when references to the continent are made with pessimism as treated as one country. We are no longer seeking for hand-outs but rather to seek to draw attention from Canada, a long way from Africa, to continue to seek interest and to find relevant and timely solutions for Africa in the sphere of investment and job creation. ”

Foreign Affairs and International Trade Canada Affaires étrangères et Commerce international Canada

“We have a very great foundation to build upon. Last year, Canada’s bilateral merchandise trade with all of Africa reached nearly $18 billion. In sub-Saharan Africa alone, trade has almost doubled since 2009, reaching a record high of over $10 billion. These increases are well into the double digits every year. The opportunities keep on growing. According to the McKinsey Global Institute, African governments and businesses are investing an estimated $72 billion a year in new infrastructure across the continent.”


“As African countries consolidate their democratic credentials and regional institutions build their capacity to bring African solutions to African challenges, economies and citizens across this great continent are emboldened by new and unfolding opportunities. Canadians are orienting themselves to support this progress, through parliamentary democracy, trade and foreign policy. I welcome these developments and look forward to working with colleagues in Canada and Africa.”

“Right now, only 12 percent of the population have access to banking services, which in the end will have a direct impact on economic development. To create a major impact on economic growth, we thought that it would be strategically important to work with job creating small holders and business owners, and, at the same time, to provide to entire population, including the most disadvantaged people with the access to the wide range of savings and deposit services.”


“How I got involved in mining? When I joined the board of Plan International in 1994, the first trip was to Burkina Faso, Niger, Guinea, and Ivory Coast. Everybody said: “We love you, Canadians, because you speak English, and you speak French. But you are not English, and you are not French. Since you are great at mining, can you come back to Africa and build a mining company here?” In 1995, when I spoke to the mining specialists in Toronto about the possibility in West Africa, most people said: “No-no, Johannesburg is way too dangerous.” So, we obviously had a problem. I hired one geologist myself, we created a company, friends and relatives put a little bit of money in, and today, Semafo with 3000 employees is one of Canada’s Best Employers and one of Canada’s 10 Most Admired Corporate Cultures™ in Quebec in 2011.” “We have approached the mining from the community development point of view. We start with community development, we use co-op method, and then we build the mine. Currently in Burkina Faso, where we have 1300 employees operating in the mines, we have 25.000 employees in our soap factory, in our sesame seed plantation, in our gardens, and in our bag factory (we need a lot of bags in the mine every day for sampling). We built them from the base up. People tell to NGOs who come to visit that they had never had so great life before. For example, the rate of kids going to school went up from 20 percent to 80 percent right now, and in our area, the average grade is 20 per cent above the national average.”

Recognition to Nola Kianza, Vice president of CCAfrica Toronto. From Letf to Right: Chris Kianza, Director of Communications CCAfrica, Lionel Leblanc, Canadian Royal Mint, Lucien Bradet President CEO CCAfrica. 66 /// WWW.CCAFRICA.CA

“I am a very strong advocate of the view that the top priority for Africa is to consolidate and build on sustainable developmental achievements. A cursory look at a number of other priority issues shows that Africa is fast becoming an active partner in a globalising world: greater regional integration, infrastructure development, nurturing of science and technology, education and learning etc. To be part of the globalised economy, Africa has to move from being a producer of agricultural products and other commodities to a manufacturing value added economy. This is where we need committed friends such as the members of the Canadian Council on Africa.”

Recognizing The Founders of CCAfrica

Recognition to Raymond Leroux, accepted by his son Jean-François Leroux. From Left to Right: Yaovi Bouka, Co-Founder of FLA (Force Leadership Africain), Jean-François Leroux, Lionel Leblanc, Canadian Royal Mint, Lucien Bradet President CEO CCAfrica

Recognition to Robert BlackBurn, Vice President Senior SNC-Lavalin. From Left to Right: H.E. Smail Benamara, Ambassador of Algeria in Canada, Robert Blackburn, Vice President Senior SNC-Lavalin


THE RISING AFRICA MAGAZINE /// 00


CCAFRICA MEMBERS

Over 150 and Growing!

Corporate Members

Access Nigeria Consulting Inc. Affutjob African Gold Group Afrique Expansion Mag Agriteam Canada Consulting Ltd. Aksa Management Ltd. Alberta International and Intergovernmental Relations AMIS International Agriculture Consulting Inc. Anyway Solid Environmental Solutions Ltd. AO Global Inc. Aquaculture Service Conseil Asc. Ardo Dia Association of Canadian Community Colleges Association of Universities and Colleges of Canada AVC Canada Corp. Aviation Zenith Inc. Babalola,Odeleye, Barristers & Solicitors Banro Corp. Barrick Gold Corporation Bata Shoe Organisation Black Business Initiative (IPE) Black Business Initiative Bombardier Inc Bridge Renewable Energy Technologies Broccolini Construction Business Club Algéro-Canadien (BCAC) Caisse Populaire Desjardins Mercier-Rosemont Canac International Inc. Canada Export Centre Canada – South Sudan Land Development Canadian and African Business women’s Alliance (CAABWA) Canadian Association of Mining Equipment and Services Export (CAMESE) Canadian Bank Note, Limited Canadian Commercial Corporation Canadian Manufacturers & Exporters Carleton University, International Relations Office Cask Brewing Systems Inc. Cégep de Trois-Rivières Cégep international CEMEQ International Centre de Formation Professionnelle Val-Dor Chambre de Commerce de Québec Chantier d’Afrique du Canada (CHAFRIC) CHC Helicopter CIMA International Inc Clark Sustainable Resources Developments Ltd. Collège Boréal COMAEK Oil & Gaz Corporation Concordia University Consortium for International Development in Education Consultation Contacts Monde Cordiant Cowater International Inc. CPCS CRC Sogema inc. Dam Developpement International Data & Scientific Inc. Data-Line Management Group Inc. Davier Consultants Inc.

68 /// WWW.CCAFRICA.CA

Deepak Dave Delisys Delivery System Dessau International Development Parnerships Développement international Desjardins Direct Lab International Inc. (Genacol) Distribution R. Desilets E.T Jackson and Associates Ecole nationale d’administration publique Éditions L’artichaut inc Education internationale EMFG: Emerging Markets Financial Group (Canada) Inc. Fasken & Martineau Fondation Paul Gerin-Lajoie Found Aircraft Canada Inc. Frazer, Milner Casgrain Freebalance Inc. Genivar Global Thermoelectric Globallinc Inc. Globaltronica Corporation Golder Associates Ltd. Groupe BelFontaine Groupe Haus Inc. HABICO Planning + Architecture Ltd. Heenan Blaikie Hickling International Ltd. Holland Water Wells IAMGold Corporation IMW Industries Ltd. Industrial Promotion Services Ltd. Informatique Documentaire Edition Electronique (IDEE) Innovision International Road Dynamics International Visa Passport Service Corp. Jacobs Consultancy Joli-Coeur Lacosse S.E.N.C.R.L. JR InterTrade Inc. Karipur Inc Kestrel Capital Management Corp. La cité collégiale Lasena Investments (Canada) Inc. M & I Heat Transfer Products Ltd. Magellan MagIndustries Corp. Manitoba Hydro International McCarthy Tétrault Mecaniflo MGS Energy Nexen Inc. North American Grain Corporation Northern Lights Franchise Consultants Nova Scotia Community College Oasis Voyages Orezone Resources Oromine Explorations Ltd. PwC PharmAfrican Planet Africa Television Procept Nigeria Promo Invest International RA International

Raytheon Canada Ltd. Remedx Remediation Services INC. Rio Tinto Alcan Rizwan Haider Sarona Asset Management Inc. Sasktel International SDV SEMAFO Seneca Serge Teupe Setym International Inc. Sherritt International Corporation SNC-Lavalin International South African Airways STRATEGEUM Startrust Multi-Dynamics Inc. Surya Ventures Corp. T.M.S. Tecsult AECOM TFI Global Inc. TFO Canada Triton Logging Inc. Tronnes Surveys Tru Quest University of Calgary, International Relations Of University of Ottawa University of Victoria Vangold Resources Ltd. Versascor International VYOP Global Concept Ltd. WDH Company Whiterabbit Resources Ltd. WNL Development Solutions Ltd. Zavic Realty Ltd. / Zavik Ventures Ltd.

Associate Members

Alberta International, Intergovernmental and Aboriginal Relations Canadian Commercial Corporation Department of Foreign Affairs and International Trade Canada Export Development Canada Ministry of Economic Development, Innovation and Export Trade - Quebec Natural Resources Canada New Brunswick Department of Intergovernmental Affairs Ontario Ministry of Economic Development and Trade (MEDT)

Affiliated African Members

Business Club Algero-Canadien (BCAC) Canada Business Association- Ghana Evergreen Supermarkets Fédération des Chambres de Commerce de Madagascar Fédération des Entreprises du Congo Mali Chamber of Commerce Nigerian Economic Summit Group Rwanda Development Board Tanzania Chamber of Commerce, Industry& Agriculture


A Trusted CCAfrica Partner Since 2004.

The Canadian Commercial Corporation supports Canadian exporters by helping governments in Africa and around the world access Canadian products and expertise through the negotiation and execution of government-to-government procurement arrangements. For more information about our services contact us today.

Un partenaire de confiance de CCAfrique depuis 2004. La Corporation commerciale canadienne appuie les exportateurs canadiens en aidant les gouvernements d’Afrique et du reste du monde à se procurer de l’expertise et des produits canadiens au moyen de la négociation et de l’exécution d’ententes d’approvisionnement de gouvernement à gouvernement. Pour obtenir

plus de renseignements sur nos services, n’hésitez pas à communiquer avec nous aujourd’hui.

1100-50 rue O’Connor Street, Ottawa, ON, K1A 0S6 T: +1.613.996.0034 www.ccc.ca l info@ccc.ca

THE RISING AFRICA MAGAZINE /// 00


Words that matter:

Home to 57% of the world’s public mining companies.

Toronto Stock Exchange (TSX) and TSX Venture Exchange are part of TMX Group… equities, derivatives, fixed income, energy, data and over 160 years of know-how under one roof.

Current as of December 31, 2012. Source: Capital IQ. TMX, Toronto Stock Exchange, TSX, TSX Venture Exchange, and Exchange with Us are trade-marks of TSX Inc.

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The Rising Africa January 2013  

The Rising Africa January 2013. In this issue we are focusing on Corporate Social Responsibility.

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