Anglo American,BHP Billiton pioneer Africa investment

PRETORIA – Miners Anglo American and BHP Billiton have helped set up a US$500 million fund to improve Africa’s investment climate and promote good governance, an analyst close to the project said yesterday.

Economist Dikgang Rapudi said the Investment Climate Facility was designed to attract more money to countries that submit themselves for assessment under the continent’s home-grown plan to improve political and economic management. “Anglo, BHP Billiton and others came forward to say, how can we help improve the investment climate of countries that show good governance, and that is how the fund was founded,” Rapudi told Reuters in an interview.”It is a US$500 million facility, founded by big business but driven by Africans.”Rapudi works for the New Partnership for Africa’s Development (NEPAD), Africa’s economic recovery strategy.Peer review, under which countries voluntarily submit themselves for evaluation by a panel of eminent Africans, is considered one of its main showcases for improving governance.Some 23 countries have asked to be evaluated under the programme and the first reports – from Ghana and Rwanda – are expected to be adopted by African heads of state at a meeting in the first quarter of next year.Leaked reports on the two countries suggested improved political and economic management, but added that much more could be done to guarantee faster economic growth.But peer review’s voluntary nature has been criticised by donor groups and opposition politicians who say countries with political or economic management problems – like Zimbabwe and Swaziland – do not put their names forward for evaluation.”Countries that are being peer reviewed would be primary beneficiaries although it is not projects in those countries alone that would qualify for funding, it is something to improve the business environment on the whole continent,” Rapudi said.The fund would target improving areas of regulation administration, streamlining tax structures and promoting partnerships between governments and private business.”It would also be used for projects that fight corruption and made business more effective and efficient and fuelled faster wealth creation on the continent,” Rapudi said.”Mozambique’s government, for instance, could draw from the fund to tackle its cumbersome tax reporting structure to bring them in conformity with international standards,” he said.A board to manage the fund, which will be based in Johannesburg, was being tapped and could be in office as early as December, NEPAD’s private sector advisor Victor Mathale told Reuters.”We expect the facility to be off its feet in March next year,” Mathale said.-Nampa-Reuters”Anglo, BHP Billiton and others came forward to say, how can we help improve the investment climate of countries that show good governance, and that is how the fund was founded,” Rapudi told Reuters in an interview.”It is a US$500 million facility, founded by big business but driven by Africans.”Rapudi works for the New Partnership for Africa’s Development (NEPAD), Africa’s economic recovery strategy.Peer review, under which countries voluntarily submit themselves for evaluation by a panel of eminent Africans, is considered one of its main showcases for improving governance.Some 23 countries have asked to be evaluated under the programme and the first reports – from Ghana and Rwanda – are expected to be adopted by African heads of state at a meeting in the first quarter of next year.Leaked reports on the two countries suggested improved political and economic management, but added that much more could be done to guarantee faster economic growth.But peer review’s voluntary nature has been criticised by donor groups and opposition politicians who say countries with political or economic management problems – like Zimbabwe and Swaziland – do not put their names forward for evaluation.”Countries that are being peer reviewed would be primary beneficiaries although it is not projects in those countries alone that would qualify for funding, it is something to improve the business environment on the whole continent,” Rapudi said.The fund would target improving areas of regulation administration, streamlining tax structures and promoting partnerships between governments and private business.”It would also be used for projects that fight corruption and made business more effective and efficient and fuelled faster wealth creation on the continent,” Rapudi said.”Mozambique’s government, for instance, could draw from the fund to tackle its cumbersome tax reporting structure to bring them in conformity with international standards,” he said.A board to manage the fund, which will be based in Johannesburg, was being tapped and could be in office as early as December, NEPAD’s private sector advisor Victor Mathale told Reuters.”We expect the facility to be off its feet in March next year,” Mathale said.-Nampa-Reuters