Why do they overfly Africa to all the distant lands at the extreme ends of the world, when they can similarly invest in nearby Africa and reap rich returns? “Investment in Africa yields the highest returns than anywhere else in the world,” Mahathir thundered!
The usual “African politicians are corrupt” and “it is a difficult place to do business” mantra cannot quite explain the behaviour of the “private investors from developed nations” towards Africa. There is something more than that.
The Asian countries were not a perfect place to invest. They had the same “difficult” conditions as Africa – corruption, political instability, personal insecurity, dictatorship, conflicts, poverty, unskilled labour, lack of technology, you name it. But that did not prevent the “private investors from developed nations” from going there to build industries and bringing benefits to all. It warrants repeating that there is something more to the reluctance of the “private investors” to help Africa than meets the eye.
Which takes us back to Mahathir’s admonition of making new friends. “If we Asian nations become genuine partners in African development and not exploiters of wealth and opportunity,” he said in that memorable speech, “and if we Asian nations can help enrich Africa with our capital, skills and technology, we will benefit from the increased trade and opportunities that a wealthier Africa will offer.
“This is what happened when the developed countries invested in Asia. This is what will happen when we invest in Africa. It is a win-win formula which all must endorse. It will create a cycle of prosperity.”
Mahathir went on: “In as much as I would make a plea to my Asian friends and Asian businessmen to create smart partnerships on mutuality of benefits and sustainable relationships, I would like to make the same plea to my African friends, both the private sector and the governments.
“One of the fundamental prerequisites of cross-border Foreign Direct Investment (FDI) flows is political stability. Without this assurance of political stability, investors will just not invest however high the returns on investment are supposed to yield. The world’s investment community must feel assured of political stability with its concomitant assurance of peace, security, non-violence, etc.
“I admit that frequently exaggerated and tendentious media reports on Asian and African countries make life difficult for the governments of these continents. But truth will still prevail if there is peace and stability.
