Item 1210 - Address by Nelson Mandela to the (Credit Lyonnais Securities) CLSA African Renaissance 2000 Investors Forum

TRANSCRIPT

Thank you very much for the invitation and opportunity to participate in this very important event and set of deliberations.
We must particularly thank CLSA for organising such a forum with a focus on Africa and more specifically also South and Southern Africa.

The conference, as I understand, is called the CLSA African Renaissance 2000 Investors Forum. We find it very fitting that the much spoken of African Renaissance is so directly being linked to investments and investors.

That regeneration of Africa of which we speak and towards which we work, means in the first place that the people of Africa shall have a better life. Ending the marginalisation of Africa will entail a host of consequences, political, social and cultural. At its root, though, lies the eradication of material poverty and its attendant social ills.

The regeneration of the African economy is a key ingredient for realising the dream of an African Renaissance. Economic growth cannot be achieved without foreign investment. Hence the crucial importance of a conference like this one.

There are many causes to the relative stagnation of most African economies in the period after decolonisation and the attainment of independence. Much of it is to be found in the damage done to indigenous social and economic structures through colonisation. The legacy left and the nature of post-colonial economic trade relations were certainly not the most favourable and conducive for the development of those economies.

What has happened in the last decade or so is that African political and economic leadership increasingly faced up to the fact that a lamentation of the injustices of the past would on its own not lead to improvements.

There was increasing emphasis on identifying also those negative factors that we ourselves were responsible for and ways in which we could contribute to a better environment for economic growth and the creation of prosperity for our people.

A number of countries on our continent are still plagued by conflict, warfare and instability. Even if this were to be the case in only one country it would be one too much. The overwhelming trend on the continent is, however, towards the promotion of democracy, good governance and a respect for human rights.

The resolution by the Organisation of African Unity not to recognise regimes that come into power through undemocratic means is an important and signal event in this regard. The concerted efforts by the continental and regional leadership to intervene and find African solutions to conflicts represent further proof of this resolve to promote, consolidate and
entrench good governance.

Similarly, the management of African economies had improved tremendously and continues to do so. Prudent policies and sound macro-economic frameworks are in place in many, and a growing number of countries. The economic growth in a substantial number of African countries had been impressive and encouraging for the future.

Much obviously still remains to be done both in terms of the promotion and consolidation of good governance and sound management of economies, but none except the highly biased can deny that there is an overall positive trend on the continent.

Emerging markets are by the nature of things in difficult positions and subject to stresses that are often of an external nature. Globalisation has meant, amongst other things, a volatility of markets caused by the interconnectedness of economies across the globe.

We have experienced how the crisis in one part of the world placed the rest of us, even where we had no control over the causal factors, under severe strains.

It is also in the nature of this global trade that perceptions play an inordinately decisive role in decisions taken. It is in that regard that we as Africans who are working hard to create that type of social and political environment previously referred to,
can ask that investors base their decisions on a hard examination of the facts rather than speculative perceptions. A pervasive, generalised and uninformed pessimism about Africa is not only unfair but does a disservice to us all.

The regeneration of Africa, the eradication of poverty and want amongst the people of the continent through economic growth and development are matters that concern the future of entire humankind. The massive divide between those that live in prosperity and the majority of the world's population languishing in poverty threatens us all in the long term.

It is not philanthropy that the continent asks for but, amongst other things, investments of a volume and nature that grow the local economies and provide work and opportunities for the population of those countries. The result will be countries and economies of the South that can enter into constructive and mutually beneficial relationships of partnership with their Northern counterparts.

There are social problems in developing countries that may be seen as discouraging investment and involvement, while in fact economic development is exactly what is required to address those issues and problems.

A longer-term view on the part of the potential investor is often asked for. HIV/AIDS is a case in point. It represents one of the gravest threats humankind, and Africa in particular, might ever have faced.

Once more there is evidence of African countries and governments tackling this issue with resolve and determination, taking primary responsibility for their futures. We do realise, though, that all the international assistance available is required to be successful in this fight. Investment in the economies of countries directly contributes to this. It enhances the economic and social capacity of a country to deal with the threat of the pandemic.

Ladies and gentlemen, it is not idle wishes when we talk of this century being the century of Africa. The pointers are there that African countries are on the upward, politically, socially and economically.

We repeat our profound appreciation for this forum being organised to give attention to investment in Africa. Investment is one of those vehicles of enlightened self-interest through which assistance is lent.

In the end, both the investor and the economy in which is invested benefit.

We invite you to invest in Africa and to help bring about the African Renaissance.

I thank you.