Africa could be next China, says mining boss

Africa could be the next China in terms of potential for economic growth, AngloGold Ashanti President Sam Jonah wrote in the company magazine, saying that Africa could thrive despite its problems.

"Africa is one of the remaining large, underdeveloped regions capable of high and sustained levels of economic growth," he wrote."Africa could be the next China."

He was commenting on the recent report of the Commission for Africa, which expressed concern about Africa's inability to attract sufficient inward investment.

Jonah said sub-Saharan Africa had suffered from low domestic and foreign investment, high capital flight and low remittance flows. He said sufficient infrastructure was necessary for development and that this was holding the continent back.

"Africa pays a high price for its inadequate infrastructure in lost opportunities for growth, poverty reduction and access to services. Access to schools is vitally important for Africa's children, but they need roads to get there," he said.

Until recently, he said, there had been a perception that the provision of infrastructure was an issue for the public sector. However, the resources needed meant the public sector could not do it alone.

Jonah warned that companies wanting to do business in Africa should be sensitive to locals' views.

Jonah stresses the need for engagement by business -- and the imperative of walking away from corruption. AngloGold's own recent admission that it had paid protection money to armed militias in the Democratic Republic of the Congo shows how even those with the best of intentions can find themselves under intolerable pressure to keep their people and resources safe.

However, the governments in question also have a duty to create a safe environment for business. Jonah said that one of his biggest challenges in doing business in Africa is to do with governance in Africa.

Source: Xinhua