And he always dreamed of seeing Africa owned by its peoples, and it is with great pleasure that I invite Mr. Aliko Dangote, Chairman of the Dangote Group.
Thank you, thank you very much. In the name of God, the Most Gracious, the Most Merciful.
Your Excellency, President Abdel Fattah el-Sisi, the visionary.
Your Excellencies, Presidents of African states and governments.
I would also like to thank His Excellency Obajo, who traveled from Kenya to here. I don't know how he got here at his age.
My colleagues from the private sector, ladies and gentlemen, it is an honor to be among you today here in the City of Two Continents, and especially to take part in this dialogue — a dialogue that calls on us all to think about the future of our beloved continent.
We are living in a period in which many changes have occurred that have affected the global economy. Trade is now dominated by geopolitical supply chains that depend on national security and geography for production. Energy has once again become the focus of diplomatic policies and investment decisions, and governments around the world are rediscovering industrial policies.
The world is facing a great deal of disruption, and the role of the economy has now become subject to change. Africa is no stranger to this environment, and the question before us is: how can Africa achieve higher growth? We must ask ourselves this question: what kind of growth can drive Africa forward in a world that has become more divided and less predictable?
For me, this should be the very core of a new covenant for Africa. We want to transform African economies for growth. We used to celebrate increases in gross national income as an indicator of growth, but growth alone is not enough.
In what areas does this growth occur? What local opportunities does it create? What jobs does this economy provide? And what economic resilience exists?
Africa represents 18.5 percent of the world's population, but only 2 percent of the value added in world trade, and 0.8 percent of high-technology exports. This gap does not only shed light on gross national income; it represents a challenge.
A country can achieve significant growth in gross national income while still depending on imports of food, machinery, medicines, and technology. Such an economy may grow steadily, but it becomes more structurally fragile.
The next phase of development in Africa must focus not only on the process of growth, but on shaping that growth and its strength. This requires a fundamental shift as Africa moves toward greater capacity.
Indeed, Africa possesses a great deal of capacity. We hold a large share of the minerals considered essential for manufacturing the technologies of the future. We have vast agricultural lands representing about 60 percent of the world's cultivated land, as well as large areas for generating renewable energy and young populations, where a large proportion is under the age of...
And through the African Free Trade Agreement, African markets are indeed available, and therefore skills become a significant advantage for African economies.
Indeed, Africa is a strong and vast continent, but there is a need to support the different economies. Manufacturing in a single African country does contribute significantly, but there are different regulations in each African country, different systems, different payment systems, and different border procedures from one country to another, in addition to differences in logistics and logistical obstacles.
But even with this African trade, we still have many opportunities. For example, what we consume in Nigeria differs from the consumption of Togo, Ghana, or other countries. There must be alignment. These figures only show the problem: 16 out of 46 African countries manufacture intermediate goods, and more than half of the continent's exports and imports involve five economies from outside Africa.
Therefore, neighboring economies must all be interconnected. This fragmentation is what weakens Africa. Businesses in Africa are smaller than required, and investment decisions become more difficult. This common market does not translate into a strong or shared economic power.
The African Free Trade Agreement offers us all an opportunity, but we must think of this agreement not only as a trade agreement — there must be an expansion in infrastructure so that investment becomes possible within the African continent and can move across African countries.
We must also design a market that aims at 30 million people. This is one of the proposals, and there is a need for more proposals so that there is genuine integration.
Your Excellencies, distinguished guests, there is another issue that requires more attention. African entrepreneurs do not lack ambition; what limits them is the cost and the environment in which they operate, which increases competition.
Of course, the cost here relates to the cost of capital, the cost of transport, the cost of logistics, and the cost of crossing borders. Sometimes there is also the cost associated with existing policies that are not characterized by certainty.
And the gaps in infrastructure in areas such as transport and energy increase costs by 50 percent above the global average. The African manufacturer competes globally with lower costs in other markets.
This increases the cost of African goods. If we want investment to shift from trade to manufacturing, we need long-term assets and we must work to reduce these costs. This is possible.
And we have proven that this is something we can do, as we supply more than 20 percent of the energy used by the European Union.
There must be a revision of policies. We must understand the cost of manufacturing a single good and compare this cost with similar economies. Also, the number of hours lost in business due to the unavailability of electricity — which is the case in many African countries. How much time is needed to reach the airport? How much time is needed to reach the markets? How can we cross borders?
Perhaps this question seems operational, but collectively we need to make these decisions in order to strengthen industry in Africa.
Everything that affects industry in Africa is energy, and there is a need for energy infrastructure. The formation of energy in Africa will always remain important, but obtaining energy is only the starting point.
And of course it helps business operations. For several decades, the average per capita electricity consumption in Africa was much higher than that of India or Central Asia. But today, we find that per capita electricity in India has risen significantly and increased at a higher rate in Southeast Asia.
The expansion in the use of electricity and electricity supplies helps trade and helps stabilize manufacturing operations.
Manufacturing operations greatly help African economies, but this has also led to an increase in household electricity consumption. Therefore, there is a need for an integrated energy strategy that helps achieve industrial ambitions.
We must think about energy from an economic perspective, especially for energy-intensive industries, and think about investment corridors, agriculture, capital centers, technology, clusters, and major cities.
Energy systems must be platforms for developing other industries, and we must stop importing raw materials and instead export fully manufactured goods.
Similarly, the new growth covenant includes private sector companies. In this dialogue, we must choose between the state and the market. Africa does not have the markets that allow assistance, because we cannot support the private sector if there are no strong governments.
Entrepreneurs must be supported and encouraged to have competitive businesses. The challenge is not to decide which side to lead, but these institutions must help both the state and the private sector succeed.
They must do what is best in terms of the policies put in place, encourage entrepreneurs, and make prosperity available.
Of course, providing infrastructure and protecting market integration are important. Markets need capital to build companies and provide the right environment. When these roles are integrated, we see an increase in investments.
And of course, capital always defends itself and always tries to reach favorable environments that help them work. Therefore, today's legislation is what helps make tomorrow's decisions.
Similarly, there is a need for an African approach so that there are global partnerships. Africa must be a participant in every economic center. We need investments, technology, markets, and partnerships from all over the world, but the quality of these partnerships must rise to help Africa.
A good partnership helps African capacities and provides the necessary skills. This helps local companies work with modern technologies and enter global markets.
As much as possible, we seek to participate in international value chains. Africa will not just look for a place in the global scene; we must define our economic destination and look for the companies that will help us reach this goal.
Ladies and gentlemen, the global disruption we are witnessing today may continue for some time, and Africa will not remain at the mercy of any event happening far from its shores. But our economies must remain resilient in the face of these disruptions.
Africa must become a base for precision and complex industries. The industries in Africa have so far been small, but with time and with the necessary financing, Africa can define its economy and its growth.
And if Africa provides the necessary materials for global value chains, especially in the field of technology, this choice will be the reason for Africa's new growth.
We are about 20 years away from 2050, and therefore Africa must be the supplier of food, mineral materials, fully manufactured goods, and more.
The world we live in today is changing, and this gives Africa a rare opportunity. We need to have a fixed place in the global economy where we can design this economy. This must be the ambition of African governments and African partners.
And also to secure Africa's share of growth and increase Africa's capacity to create this growth.
I would like to thank all our leaders for providing this support, especially Afreximbank, because many countries would have faced many difficulties were it not for Afreximbank.
I can say in my testimony that without Afreximbank and the other banks, we would not be in the position we are in today. And I thank you for giving me this opportunity.
The visions of our leaders are extremely important. Foreign banks will not help us develop our continent; only Africans will develop Africa, no one else. Africa must unite for the development of Africa.
For this reason, our group supports Vision 3, and we are now investing over four years about 50 billion dollars, and we have invested in Kenya alone about 16 billion dollars. We have done this work and obtained the approvals.
So we welcome all cooperation with us today. What I want to commit to before our audience is that you allow this agreement — the free trade agreement — to exist, with free movement of people, services, and goods.
If we do not interact with one another, there is no other way to build the Africa we dream of. I know that prosperity, job creation, and other matters require stability, and this stability provides jobs, as we have the youngest populations in the world.
If we do not cooperate with one another, we will face difficult times. Thank you.
