AMN - Africa urged to review investment policies - comment by Yolanda Torrisi

It is imperative that African countries make a concerted effort to review unfavourable investment policies in order to attract more foreign investment. These policies include the practice of double taxation.

African states need to implement procedures that minimise risk and protect investors to ensure there is a flow of foreign direct investment. Bad trade treaties are affecting the continent’s ability to be competitive, especially against a backdrop of volatile commodity prices.

Japan External Trade Organisation Institute of Developing Economies vice president Kataumi Hirano recently told the International Conference on Africa Development in Nairobi, Kenya, that African leaders and trade experts needed to navigate the mechanisms and strategies to promote investments to ensure a sustainable and prosperous growth.

Developing economies such as those like Rwanda can benefit from an investment in skills and help make them more competitive despite the lower commodity prices.

He was reported saying: “Economies like Rwanda should continue investing in productive industries, human resources and value-addition to boost exports and stay buoyant. This will equally require increasing investments in these sectors to remain competitive.”

Agro processing is one way of helping African counties supplement their reliance on mining and cushion against lower commodity prices.

Kataumi Hirano says African economies can defy the odds facing the global economy by trading in finished products, and not raw materials. “However, for this to happen, there is need for all stakeholders to collectively seek ways of increasing competitiveness of agricultural products by improving quality and production capacity. This will ensure economic sustainability and inclusive growth on the continent.”

- Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the African continent. Contact:yolanda@yolandatorrisi.com