How Dubai can help Africa drive growth

Dubai - Dubai can be a key partner to Africa due to its strategic location, stable economy and sound economic policies.

Dubai can be a key trading partner to Africa due to its strategic location, stable economy and sound economic policies, top executives said at a forum on Monday.

In his opening speech at 3rd Africa Global Business Forum (AGBF), Minister of Economy Sultan bin Saeed Al Mansouri said one of the key reasons for Dubai's progress and dynamic role in strengthening the UAE-African relations is the dominant presence and growth of Emirates airline that has played a pivotal role in opening new markets for the UAE's investments in the African continent.

The minister said a number of visitors from Africa to Dubai is expected to reach 1.5 million by 2020. DP World has registered great success in the African markets, with presence in a number of ports in the continent.

"In the UAE we realize that the future of business is located most significantly in the continent of Africa. Investment opportunities in various sectors, especially in agriculture, infrastructure, mining, trade, logistics services, tourism and financial services, abound," Al Mansouri said.

The minister flagged that through such a framework of cooperation "we can identify available trade and investment opportunities. It is equally important to strengthen the re-export of African commodities and products through our ports to different parts of the world".

The two-day forum was attended by over 40 African, UAE and Arab leaders, including heads of state, prime ministers and chairmen, as well as leading figures from banks and sovereign funds. The event is held under the theme 'New Drivers, New Partners' and coincides with the 50th anniversary of the Dubai Chamber.

Majid Saif Al Ghurair, chairman, Dubai Chamber, said that dialogue is crucial for opening new doors and creating exceptional relationships. There is no denying that Africa is a land of unexplored opportunities and we believe that Dubai, with its strategic location, stable economy, sound economic policies and world-class infrastructure, can be a key partner of Africa and a gateway for Asian countries into the continent.

"The Chamber was one of the first to recognize the potential of the African continent and started its relationship with Africa by exploring the Common Market for Eastern and Southern Africa (COMESA) region, and that it is now more focused on looking for opportunities in Sub-Saharan Africa.

"Furthermore, 21 per cent of the new companies who joined Dubai Chamber's membership between January and October this year are African companies, which indicate Dubai's attractiveness to international businesses."

In the first session titled 'The Big Picture - Is Africa ready to drive global growth?', joint chief executive officer of Standard Bank, South Africa, Sim Tshabalala said that innovation has always outpaced institutions.

"We need to encourage a larger number of people to enter financial services as a profession and increase the numbers of Africans entering the financial system, both of which will allow the African population to drive economic activity, especially considering the increasing need for regulation across various sectors.

Mustafa Abdel-Wadood, partner, Abraaj Group, UAE, said that Africa is experiencing double digit growth compared to the rest of the world, and its relevance and importance will increase over time.

"By 2050, we expect 2.4 billion people will live in Africa, and investors always want to be in the markets where the population is, and where the spending power is. Commodity based economies tend to be volatile, and the vision for these economies must consider how to channel this wealth into diversification.

The second session focused on infrastructure and chairman of DP World Sultan Ahmed bin Sulayem noted that there is a significant pressure on infrastructure. With more than half of the population in Africa living in cities, he said infrastructure is needed to build opportunities and to achieve this, Africa needs continued investment.

"There is a big gap in terms of investments in Africa and the way for this is Public Private Partnerships. A key way to attract investment and to bring in foreign capital is by demonstrating that Africa will protect foreign investment," Bin Sulayem concluded.